How Allbirds' Conversion Value Increased by 2.2x
Due to shoes having a long repurchase cycle, email revenue accounted for a limited portion of overall sales. By leveraging Retentics AI to implement proactive email flows, Allbirds saw a 117% increase in conversion value and achieved a 21X ROI.
Sep 20, 2024
*Our client is the local branch of Allbirds in Korea
Challenge
The repurchase cycle of shoes-the main item of Allbirds-is long, inevitably resulting in a low proportion of email revenue.
Solution
Utilizing Retentics’ AI, our team implemented various flows to proactively send emails to customers, enabling repeated purchases rather than relying on passive flows that wait to be triggered by customer actions.
Key Results
After implementing flows with Retentics, Allbirds saw a 117% increase in conversion value and achieved a 21X ROI.
“ Retentics could be a game changing solution for e-commerce businesses, especially those in the consumer goods space. What sets Retentics apart is its sophisticated system predicts exactly when customers will repurchase, which allows marketers to send personalized messages and automate the entire process. Getting started is simple, and you'll see immediate sales impact with Retentics' dedicated support team guiding you along the way.” -Ruben ⎜Assistant Digital Growth Manager
Allbirds is a brand that creates shoes inspired by nature.
Our client, Allbirds Korea, is this brand’s local branch in Korea.
Co-founded with intrigue in merino wool, Allbirds makes shoes that have simple design, comfort and sustainability.
Allbirds Korea was sending emails to Korean customers, but faced challenges in setting their strategy due to the infrequent use of email marketing in Korea.
More specifically, because shoes are typically not replenished frequently, Allbirds found that email revenue constituted a small portion of their total revenue. Their mission was to encourage first-time customers to place repeat orders and to optimize their email flows for this goal.
Previously mentioned, Allbirds have products with a longer purchase cycle and was a brand just getting intimate with email marketing.
In such cases, analyzing customer purchase patterns becomes critical. Recognizing this, Retentics developed three targeted strategies based on personalized purchase patterns identified from Allbirds' comprehensive customer purchase history.
1. The Replenishment Flow
Retentics’ introduction of this flow resulted in an overall sales increase of approximately 1.5% for Allbirds’ online sales.
While Allbirds had established flows targeting high conversion opportunities like "Back in Stock" and "Abandonment" series, they had not yet maximized post-purchase engagement, which was crucial for converting first-time buyers into loyal customers. Implementing the Replenishment flow was a critical first step.
The key to this flow's success was precise timing. By integrating Retentics AI's replenishment date filter, which predicts individual purchase cycles, Allbirds could optimize notification timing for each customer. This personalization led to a remarkable 25% increase in revenue share from Allbirds' email flows.
2. Personalized Item Recommendations
Analyzing purchase patterns is also crucial for effective item recommendations: well-developed product recommendations can significantly enhance a brand's email communications, creating personalized experiences that naturally lead to increased sales.
While Klaviyo does offer product recommendation features, many of its users default to basic methods, such as recommending top selling items. While simple to implement, these methods fail to deliver true personalization at the individual customer level.
Using advanced personalization algorithms, Retentics took a different approach. Beyond recommending just the top item, Retentics AI provided item recommendations tailored to each individual, based on analysis of their unique purchase history.
For Allbirds, this meant ensuring gender appropriate recommendations. Women received women's products while men received men's products, especially while maintaining category consistency. This targeted approach significantly improved their conversion rates.
3. The First Purchase Bounce Back Flow
Converting first-time buyers into repeat customers represents a critical opportunity for e-commerce (or DTC) brands, as these one-time purchasers often constitute the largest segment of a brand's customer base. Naturally, the potential audience for targeting these customers to place the next order is essential for both developing flows and to analyzing data.
However, Klaviyo’s approach to addressing this issue has a serious drawback. When using Klaviyo, automated emails targeting one-time buyers are sent immediately after their first purchase. And these can be extremely overwhelming for the recipients!
On the other hand, Retentics’ first purchase bounce back flow provides the strongest strategy to convert first-time customers. With Retentics, our client could deliver personalized messages and by incorporating our team’s logic of recommending the most suitable items for customers’ next purchase after their initial transaction, could boost conversion rates.
Although this flow was launched only a week ago and still is undergoing development, we are already seeing a significant increase in conversion rates within just one week.
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