Appier's AIQUA AI personalized marketing cloud helped AREA 02 organize multichannel personalized marketing activities, such as through the brand's official website, push notifications, e-mail, and SMS, and encouraged customers to download the AREA 02 app. In addition, lucky draws and coupons provided over multiple channels increased the speed at which customers placed orders to purchase products.
After implementing the multichannel marketing strategy and increasing communication channels, AREA 02 utilized automated A/B testing for website push notifications. It also optimized audience segmentation and event interactions, thereby increasing the number of app downloads and coupon redemption rate. Altogether, this allowed AREA 02 to find the key factors to success. Furthermore, AIQUA detected the products browsed by users and the products they put into their shopping cart. This triggered push notifications for products they may be interested in and automatically sends reminders to complete checking out. Such mechanisms optimized a smooth customer journey and enabled AREA 02 to reach a 400% year-on-year increase in coupon redemptions, 170% annual growth of first-time customers, an annual growth of 28% in gross merchandise volume year-on-year from January-March 2022, reduction on customer acquisition costs by 38% and growth of successful matches by 2.71 times for sneaker bidding and matchmaking from January-March 2022.
AREA 02 believed that a personalized experience is the key to success in the e-commerce industry, and aimed to maintain a high interaction and repurchase rate of its members. AIQUA helped AREA 02 better understand its members and personalized needs of customers to provide the right services and experiences.
AREA 02 designed the customer journey based on the behavior of new users to increase the number of new members. It monitored all interactions with customers and provided personalized push notifications, making for the perfect interaction experience that encouraged them to become members. After using the new customer journey mechanism to develop the formula for stably acquiring new members, AREA 02 continued striving to increase the lifetime value of its customers and used the audience segmentation function of AIQUA to provide personalized information suitable for customer groups. As a result, it increased the number of repeat purchases and products, the member return visit rate grew 30%, and the number of repeat customers grew 2.5x year-on-year from January to March 2022.
In addition to managing the existing channels, such as the official website, its self-owned media, and paid media, AREA 02 and Appier jointly implemented AIQUA as the first mile in digital transformation. This included expanding the communication channels to in-web campaigns and pop-ups, providing personalized experiences and smooth customer journey, continuing the consumption cycle of current customers while effectively acquiring new customers, and thereby covering every aspect of the marketing funnel.
AREA 02 strives to provide a good personalized experience and membership system. Its next step is to further enhance personalized experiences through the advanced hybrid algorithm of AIQUA. It also aims to develop a personalized product recommendation engine based on customers' preferences and behavior that automatically finds and recommends products suitable for each customer and discovers products that buyers may potentially be interested in. This increases customers' brand loyalty and further leads to uninterrupted purchase behavior.
AREA 02 CEO Cory Chen said: “This is the third year since the AREA 02 website was launched. Its tech R&D team has continued to move towards its goals of developing new functions and technologies. The adoption of Appier technology and professional team services has resulted in significant growth in terms of customer retention and member management mechanisms. This has allowed the team to focus internally on optimizing current business models. Furthermore, consulting services of the Appier team allowed us to get started quickly and jointly plan a marketing experience better suited for our target audience.”
To achieve digital transformation, AREA 02 will continue to collaborate with Appier in building a sneaker trading platform that "understands customers" and aims to increase the overall transaction amount, and thus create a win for both brand management and customer relationship management.