A large online retailer who many of us buy from on a regular basis sells thousands of products online in dozens of categories. They noticed a big drop in conversion rates and revenue per client and didn’t know why.
They went to McKinsey & Company for help, who did a 20,000 person study on consumer behavior and how selling and marketing to consumers has changed. They identified where efforts should be directed to yield the highest return on marketing efforts. Click here to read a great brief about the study – “The Consumer Decision Journey.”
- They dug deep into existing online analytics to study the correlation between purchases and quantity of product per category
- They used segmentation to calculate likelihood that customers in each category would “cross the aisle” and buy something in another category
- After digging into the data, they found the lifetime value of a toy buyer increased greatly when they bought in other categories
- Conversely, consumers who bought a lot of pet products did not buy frequently in other categories
- After studying their consumer decision journeys they developed cross-selling and category penetration techniques to grow the lifetime value per customer
- 6 months into this project yielded a jump of 25% in email conversions, 60% increase in on-site conversions, increase in overall sales of 20% and and overall ROI of 30%.
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Purnia with an objective to realistically add original content and grab the attention of pet lovers so that they could return to the site, launched a web platform called Pet Charts, a definitive guide to the best pet-related photos, videos articles and blog posts online. The web platform was developed to so that in a single visit pet-lovers could get their fix of funny, entertaining and informative content and the entire experience was presented by Purina. It also had an option where the visitors could vote for their favorites to move them higher up the charts. The results have been very impressive as Pet Charts has quickly grown into one of Purina’s top 5 most-trafficked properties and has turned to be a favorite of the pet community. Case study
PETCO, a leading retailer of premium pet food, supplies, and services, employed social medium innovatively to improve its business. For the same the company harnessed its customer voice to spread word of mouth awareness regarding its products and services. PETCO leveraged the voice of their customers by implementing the Bazaarvoice Ratings & Reviews solution, which went live on their site. The results have been tremendous since its launch in October 2005, in terms that the website clicked nearly 5 times higher, Top-Rated Products category had a 49% higher conversion rate and customers spending saw a growth of nearly 63% on PETCO’s top-rated products. Case study
PETCO knows pet owners are also pet lovers and they consult each other on buying products. To increase their sales, PETCO came up with product reviews of customers and incorporated ratings and reviews into email campaigns and in turn got 5 times boost in rates. In association with Bazaarvoice, it differentiated four and five start products which gave 40% more conversion and 60% more average order value than normal shopping ways. Case study
Petco.Com created a website the Answer Den which comprised of question and answers generated by its customers. It also engaged its customers in a contest titled “Answer This!” where they were rewarded for being first visitor to answer the question of the day. The Answer Den facilitated an uphill in sales results for PETCO.com. 358% rise in daily answer volume and 49% in question volume also demonstrated inspiring customer response. Case study
“Make a Milkbone Moment” is a photo-contest site dedicated to celebrating Milkbone’s 100th anniversary. The contest seems simple: submit a photo with you and your dog and your dog could be the next Milkbone spokesdog, with an attractive $100,000 signing bonus. Entry for the contest was conducted both on the site, and through a mobile tour with an interactive kiosk to receive entries (and a photographer to take pictures of pet owners and their dogs). Currently 100 winners were selected by a panel of judges, and are now up for public voting on the site. It’s a very cute concept, but as an audience member the main problem I experienced was the barrier to participation: once I wanted to vote or share a picture, I was prompted to register for the site. Case Study