A fast growing jewellery brand incorporated customer intelligence AI capabilities into existing workflows to fuel a remarkable 12.4x lift in conversion rate and ~$160K in additional sales during "End-of-Season Sale" campaign, enhancing marketing efficiency and impact.
Based in New York, the brand has established itself as a leader in luxury accessories, offering everything from engagement rings to elegant necklaces.
Faced with the goal of increasing both LTV:CAC ratio and Average Order Value (AOV), the marketing team knew they had a trail to blaze of their own:
Incorporating artificial intelligence (AI) and machine learning (ML) into their existing workflows to enhance their marketing strategies and boost results, without the hassle of integrating new tools.
Challenges
Finding the right balance
The brand aimed to improve its LTV:CAC ratio and increase AOV by encouraging customers to explore additional products and premium offerings.
However, they knew that a heavy-handed approach with bulk of marketing messages to irrelevant audiences could backfire, leading to customer frustration or opt outs (meaning not able to reach them when the time is actually right for them)
To find the right balance and reaching the right customers with right offers at the right time - the marketing team recognized the need for a data-driven strategy that would help them identify prospects most likely to purchase and respond positively to their campaigns.
Navigating implementation challenges
While the strategy was promising, the team faced a significant hurdle: how to quickly implement advanced ML strategies without access to in-house data scientists or the time to integrate a new tool into their existing marketing setup.
Addressing data fragmentation
Another challenge was that customer data was spread across multiple platforms, making it hard to get a complete picture of their customer base.
The solution
Utilizing Customer Intelligence AI Engine
This otherwise daunting challenges was quickly and easily solved by turning to Predictive Audiences, powered by Matics AI Engine - Customer Intelligence
This enabled them to accurately identify high-potential customers most likely to purchase premium offerings in the next 6 months - allowing them to move more efficiently and effectively, without the learning curve.
Key solution highlights:
1. Data Consolidation and Exploration:
We began by consolidating disparate customer data sources into a unified platform, enabling thorough analysis of transaction histories, customer behaviours and purchasing habits.
2. Prospect Identification Modeling:
With Customer Intelligence' pre-built modules and toolkits, we're able to develop intuitive predictive models within days, not months - to determine the likelihood of propensity to purchase for each customers in the next 6 months.
3. AI precision for targeted campaigns
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These likelihoods were then used to target customers in the top 20th percentile with upsell and repeat purchase offers.
By integrating these insights within their existing marketing systems, they were able to efficiently target the most promising segment of their customer base -without effecting the not promising ones.
Sr. Marketing Manager developed a camapign with this segment of users designed to test against his traditional control group. This approach allowed him to compare the lift in results and refine their marketing strategies based on data-driven insights.
"We chose Matics because they seamlessly integrates with our existing infrastructure, allowing us to maintain full ownership of our data without it ever leaving our premises. We're able to leverage advanced ML strategies without relying on third party tools and ensuring complete security and compliance. Plus, their team brought domain expertise to the table, enabling us to optimize our marketing strategies effortlessly."
- Senior Marketing Campaign Manager
Results
A transformative impact on marketing strategy
The predictive focused approach allowed the brand to generate a 12.4x lift in upsell conversions and capture $160,000 in incremental sales during just one "End-of-Season Sale" campaign.
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By honing in on the top 20% of prospects, marketing efforts were significantly more effective, leading to reduced overall spend and increased conversion rates.
With a notable increase in customer interactions and positive responses to targeted campaigns, helped build stronger relationships and encouraging repeat purchases.
"Delivering personlized approach based on predictive insights has allowed us to generate a 12.4x lift in upsell conversions and contributed $160k in additional sales, compared to traditional approach. We were able to ensure customer satisfaction—there was no increase in opt-outs. This success has laid the foundation for expanded, ongoing marketing campaigns."
- Head of Marketing
Results like this are a testament to the power of targeted, data-driven marketing, and highlights the seamless integration and ease of Matics Customer Intelligence AI Engine.
Initially hesitant about the complexities of AI and machine learning, the marketing head quickly recognized it as an essential component of their strategy after just one successful campaign.
Conclusion
By utilizing Matics' native AI and ML capabilities, the luxury brand delivered highly targeted campaigns that significantly enhanced both upsell and customer engagement—faster and with greater ease than ever before.
As leading retail and e-commerce brands continues to chart its course in the industry, we're promising even more groundbreaking achievements on the horizon.
Curious to see Customer Intelligence in action for yourself? - Start with a free AI action plan to kick-start this strategies in your business...
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