Nov 13, 2023

How Rael Grew Their Email Campaign Conversion Rate by 3.5x

In this Use case, learn how feminine care e-commerce brand send hyper-personalized email by Klaviyo and see the conversion results of their email campaigns.
How Rael Grew Their Email Campaign Conversion Rate by 3.5x
Contents
Who Is Rael?
Key Result
Challenge That Rael Encountered
 

Who Is Rael?

Rael is known for its natural and organic feminine care products. They support people in making healthier choices for their bodies through personal hygiene products and make them easily accessible worldwide.
  • Founded in 2017
  • Personal care and wellness retail brand powered by Shopify
  • Uses Klaviyo for email marketing
 

Key Result

: Quadruple the sales without increasing the marketing budget

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Summary of A/B testing

We conducted an A/B test to evaluate the performance of our recommendations. We divided our audience into two groups: the Treatment group, email marketing with personalized product recommendations by Retentics’ Artificial Intelligence, and the Control group, generic email marketing with the most popular product(Top-selling) recommendations. The results showed that emails incorporating Retentics' personalized recommendation list led to an average purchase conversion rate 3.5 times higher than the Control group.
In both tests, the Treatment group out-preformed the Control group, 3.5 times higher purchase conversion. These results indicate that accurate targeting, when promptly delivered with attractive product recommendations, can significantly increase purchase conversion rates compared to generic email campaigns.
 

Challenge That Rael Encountered

: Tailoring Content in Email Marketing

Rael is an omnichannel brand operating across various sales channels including a direct-to-consumer (D2C) shop. They utilize email marketing for customer management in their D2C business to increase brand loyalty and repeat purchases.
Traditionally, they have been sending emails to all customers who have provided their email addresses, which include new product promotions, various promotional notices, and newsletters. However, the conversion rate from email to actual purchase has been significantly low, indicating a need for personalized email content. Despite using Klaviyo, which also allows customer segmentation and products recommendation, they encountered difficulties in sending personalized messages to each individual.
 

Retentics Solution

: Hyper-personalized recommendation by Retentics’ Artificial Intelligence

Retentics suggested a hyper-personalized recommendation algorithm for Rael that could recommend different potential purchase products for each customer. Retentics' recommendation algorithm approaches from two perspectives:
  1. Purchase history of each individual customer and
  1. Relationships between products within all purchase histories.
Typically, other tools generate product recommendations by analyzing individual customers' purchase history, a method mostly effective in identifying recurring purchase patterns. This means that new customers with insufficient purchase history might not receive any product recommendations.
 
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However, Retentics takes a different approach. It analyzes the cross-selling relationships between products based on all the purchase histories on the shop. As a result, even customers with limited purchase histories can receive recommendations for products that have strong cross-selling associations with their purchases. This way, every customer gets personalized product recommendations, regardless of their purchase history.
 

Result

Rael executed two email campaigns through Retentics, all including A/B testing. The treatment group, which received product recommendations based on Retentics' Artifical Intelligence, recorded a 3.5x higher purchase conversion rate leading to a 4.1x higher revenue compared to the Control group that received recommendations for top-selling products.
 

 
Our team recently launched our second feature: a hyper-personalization email campaign add-on for dynamic product recommendations. This tool enhances email marketing purchase conversion rates through an AI-driven targeting and product recommendation. After numerous consultations with DTC brands globally on customer retention strategies, our team has demonstrated that our personalized recommendation technology significantly outperform the method of recommending the most popular product to all customers, achieving an average 1.8x higher purchase conversion rate.
 
In today's AI-dominated era, where technology often performs tasks traditionally done by humans, our team strives to simplify customer retention strategies into an easily actionable platform. This allows small and medium-sized enterprises to increase repeat purchases without needing expert analysis or a significant time investment. As a result, we've developed an AI that swiftly creates targeted customer lists and suggests appealing products.
 

Written by. Zack
 
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