The Problem: A Prominent Holding Company Wanted to Offer Promotions Smartly to Save Their Margins
The leading holding company manages global brands in Southeast Asia. They have been in operation for over 50 years and for the past 15 years, they have been a holder of major retail brands. Currently, they manage three brands and have five different eCommerce properties that are hosted on Magento.
The regional market in Asia is oversaturated with existing discounts and promotions, making it a challenge to compete. Alibaba’s Singles day on 11/11 is so popular that now, the marketplaces offer huge sales sitewide every month for 9/9 and 10/10. As a result, shoppers come to expect discounts. The holding company faced a dilemma. How could they keep up with the competitors’ promotions while still preserving their margins?
Before implementing Namogoo’s solution, the eCommerce holding company had started incorporating personalization into their promotion strategy through direct marketing activities, but their efforts had limitations. Personalization was done for each product category, not for the product itself. So, a shopper might see that the shoes category was on sale for 10% off, but they would not receive a discount for a specific shoe in particular. Not only was the categorical personalization not specific to the product itself, but the personalization was also limited only to returning customers, not new shoppers.
The Solution: Personalize Promotions for Each New and Returning Shopper with Intent-Based Promotions
The holding company’s Vice President & Head of eCommerce was curious about the potential to save margins, so they decided to try Namogoo’s solution across all five of their eCommerce websites.
It was clear that the team was looking for solutions to optimize their promotional strategy, to find an alternative to site-wide promotions so standard in the eCommerce industry but to still offer personalization to both new and returning shoppers.
That’s where Intent-Based Promotions filled the gap. Now, the online retail holding company could offer personalized promotions for each product offering across multiple brands for new and returning shoppers. By offering promotions based on intent, they could avoid promotion overspend. As a premium retail brand holder, shifting away from sitewide promotions would preserve their high-end brand perception.
“Site-wide discounts are the easiest discount to offer, but I want to drive away from that activity. Not everyone needs 20% off. That’s why Namogoo’s solution is so unique, offering personalized promotions to each shopper based on their intent is a real game changer.”
The Business Impact: Holding Company Saves their Margins and Increases their Conversion Rate
The team was able to obtain the business output they needed while delivering on the business KPIs they wanted. With Namogoo’s Intent-Based Promotions solution, the established holding company was able to save their margins and increase average order value per visit across all brands.
Major results included:
- 24% increase in CVR
- 23% increase in RPV
- 5% increase in AOV
Looking specifically at their flagship brand distributed in Southeast Asia, the holding company saw an increase in the following metrics:
- 34% increase in CVR
- 73% increase in RPV
- 29% increase in AOV
“Our site managers agree that Namogoo’s solution is easy to set up, user friendly, and flexible.”
Conclusion: A Better Customer Journey
The team was able to engage new and returning shoppers, avoid promotion overspend, and maintain a healthy brand perception without sacrificing their margins.
Once the holding company was able to better understand their online shoppers’ intent, they were able to improve their shoppers’ customer journey. Namogoo’s Intent-Based-Promotions tool is the first promotion machine that individualizes promotions in real time and delivers the minimum promotion needed to convert shoppers at the right time in their journey.
“Everyone we worked with on a daily basis was committed to helping us achieve our goals. From the free trial to the implementation, they were attentive, professional, and available.”