Segmentation as the basis for better personalization
The South Korean e-commerce brand Funshop partnered with Appier to take its marketing outreach to the next level with personalization.
In the increasingly competitive e-commerce industry, personalization has become a must for brands that want to better target and engage their customers. However, to execute personalization effectively, Funshop needed to first collect more information about its customers, their behaviors and interests.
Appier’s AIQUA was the ideal solution for the job with its ability to engage customers and track their actions across marketing channels. The solution automatically collected customers on-site behavior data such as what they searched, viewed and purchased, and these became the new, expanded target segments for the brand.
This continuous refinement of Funshop’s target segments allowed the e-commerce company to send out more and more personalized EDMs, with the average open rate of 34 EDM campaigns reaching 33% and the click-through rate (CTR) 31%.
Retargeting with personalized content for higher conversions
One of Funshop’s key goals in working with Appier was to improve how it engaged existing customers in order to increase customer retention and loyalty.
AIQUA made retargeting easy and effective with personalized content.
With a one-time campaign set-up, AIQUA put a trigger-based push notification in place to retarget customers who viewed a product but did not purchase.
AIQUA recorded any instance that a shopper viewed a product. If the shopper left without purchasing, the system would send out push notifications that were personalized with that viewed product and the product image whenever the price dropped for said product.
The price drop, which was the trigger in this case, was an opportunity for shoppers to revisit the product. The personalized push notifications made these retargeting notifications more effective. The notifications achieved a CTR of 43% and a conversion rate that was 3.7 times higher than the average for the electronics and accessories online shop vertical.
According to Han Jinhee, Funshop’s marketing strategy manager, “AIQUA enables us to create segments based on product and category, and to communicate with customers across channels easily. With AIQUA, we were able to initiate personalization such as recommendation models without much help from the IT team.”
Retargeting with a membership grading program
Beyond the trigger-based push notifications, Funshop leveraged AIQUA to sort its existing customers via an RFM (recency, frequency, monetary value) analysis.
AIQUA combined on-site customer behavioral data, such as campaigns clicks and website viewed, number of visits and purchase history, and first-party CRM data, such as membership information. Then, RFM analysis will be performed to create three membership classes: VVIP, VIP, and inactive.
Through this, Funshop will be able to better retarget and send out the appropriate information that would resonate with each group of customers to make the most of each marketing outreach.
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