How a US-based Retailer of Skin Care Devices Achieved 24% Increase in Revenue Per Session with Algonomy’s EngageTM
Segment
Beauty & Wellness
Challenge
The client wanted to maximize revenue per session by optimizing home page content tiles for different customer segments.
Product
Outcomes
Increase in clickthrough rate (CTR)
Increase in revenue per session
Increase in overall clicks
The client’s mission is to beautifully transform skin through its award-winning devices, which cleanse skin six times better than hands. Hand-assembled at its headquarters, the devices are distributed through prestige retailers, dermatologists, cosmetic surgeons, spas and online at the client’s own ecommerce website.
The Director of Ecommerce and Digital Marketing for the client is in charge of managing customer website experiences to achieve the direct-to-consumer revenue goals for the business. In addition to optimizing traffic, conversion and revenue, the team manages all content, paid media channels, affiliates, search engine optimization and search engine marketing as well as retargeting, email and loyalty programs.
For the client, engaging and educating the new user is a critical objective for the website. When new visitors have their first experience with the brand on the website, they want the site to represent the “knowledge hub of the brand” so they can learn everything—from which device is right for them to what skin care products and brush heads pair best with their chosen device.
“The fact that I can keep testing content and justify why I’m showing it is amazing! I’m confident that these data-driven decisions are helping to move visitors efficiently through the purchase funnel.”
Director of Ecommerce and Digital Marketing
Old way: multiple messages meet multiple needs
Prior to working with Algonomy, the client’s team used a carousel approach for their website homepage. A rotating carousel of three to four content tiles cycled through the home page, switching to one static tile during sale periods.
The client considered this method to be standard but outdated. “Promoting multiple messages regardless of behavior, and hoping one sticks, was not ideal. We gained no insight into the segmentation of our customer database—who’s coming, what they’re interested in,” said the client.
While the approach satisfied internal stakeholders who wanted frequent home page updates and wanted to ensure that a variety of messages for different products were seen, the issue remained: It was impossible to determine which messages resonated with visitors.
Personally, the client felt that it could be hard for visitors to digest any message moving through a carousel, let alone decide where to click. With no analytics or data to back up the message choices being made, they knew it was time for a change.
“We spend a lot of money to drive folks to the website and my job is to make sure they convert with the highest revenue per session,” said the client.
New way: content and context motivate visitors through the purchase funnel
Having learned about Algonomy through existing partnerships with sister brands, the client decided to use the Engage™ solution to segment audiences, and test and optimize content tiles against key metrics—click through rate and revenue per session.
“Everyone will always have an opinion, but our job is to move from opinions to data-based decisions that show what customers are gravitating toward,” said the client.
“Clickthrough rate may be a function of the creative; revenue per session may be a function of the right message and content. A lot of times we don’t know, and that’s why it’s critical to always be testing.”
Engage™ maps individual shopper behavior against advanced targeting and audience segmentation tools so that marketers can deliver highly personalized campaigns with relevant content. Its ability to automatically target each segment, optimize the most effective creative for that segment, then pass the data back to the business to inform creative decisions for the next round of campaigns saves valuable time and eliminates the need to run hundreds of manual A/B tests to get content personalization right.
After implementing EngageTM, the client has seen significant success in key metrics for users that interact with its home page content tiles, such as a 20 percent increase in clickthrough rate and a 24 percent increase in revenue per session, while also seeing a 35 percent increase in overall clicks.
“EngageTM gave us information on what messages and creative were resonating with customers. We tested 12-15 pieces of content for each customer segment and found two that resonated very well: ‘Find your Product’, which linked visitors to an interactive skin quiz recommendation engine, and a tile with the message ‘Great Skin Starts Here,’ which highlighted our key skin care benefits to our users,” said the client.
With plans to continue testing current content “winners” against new content, the client looks forward to uncovering more learnings and insight from using EngageTM.
“The fact that I can keep testing content and justify why I’m showing it is amazing! I’m confident that these data-driven decisions are helping to move visitors efficiently through the purchase funnel,” they said.
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