Urban Research is a Japanese fashion company, offering clothing and accessories from all over the world. It encourages shoppers to “design your own lifestyle”.
One of its brands is Urban Research Outlet (URO), an outlet-only e-commerce shop. Although the products at the outlet were in high demand but profits were difficult to guarantee. So, it wanted to increase the conversion rate on the website.
URO also found that the conversion rate of the hesitant customers who purchased 3 times or less was 40% lower than the customers who purchased more than 3 times. I wanted to improve the conversion rate of the hesitant customers.
Since the URO already offers products at a discounted price, the key is to operate without unnecessary promotional costs.
URO used to send coupons with various promotions to all the website visitors, which caused high promotional costs.
However, coupons can greatly increase the conversion rate. So, URO partnered with Appier to leverage AiDeal, an augmented marketing and customer targeting solution that optimizes coupon distribution. Powered by artificial intelligence, AiDeal only selects shoppers who are likely to complete checkouts with incentives, and deliver customized coupons to them – in this case, the hesitant buyers who purchased 3 times or less.
URO also discovered that customers were generally satisfied with the prices since the products were already on sale, they were, however, more resistant to pay for shipping. So, URO used AiDeal to deliver coupons with “free shipping” to the target audience, instead of offering money off the existing prices.
With the help of AiDeal to send coupons to the selected hesitant shoppers, URO’s conversion rates increased 142% through smartphones and 116% through PC. It also boosted revenue by 70%.
URO also ran an A/B test, which showed that the hesitant customers were more likely to purchase with coupons as the improvement of the conversion rate was 10% higher than customers who purchased more than 3 times. It also showed that the conversion rate of offering free shipping was 45% higher than offering 500 yen OFF.
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