How Allbirds' Conversion Value Increased by 117%
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, our client experienced a 117% increase in conversion value and a 999% growth in email recipients.
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 AI, Allbirds experienced a 117% increase in conversion value and a remarkable 999% growth in total email recipients.
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.
1. Replenishment Flow
Our team’s introduction of this flow resulted in an overall sales increase of approximately 1.5% for Allbirds’ online shop.
Allbirds had already set up flows in order to target customers with relatively high conversion rates, such as the 'Back in Stock' and 'Abandonment' series. However, the issue was that the number of flow recipients was very small.
To boost email revenue, it was essential to increase the number of emails sent, so we helped our client set up their replenishment flow first. We added Retentics' replenishment date filter, which predicts purchase cycles, to the basic structure of the flow.
As a result, the number of flow recipients increased by 999%, compared to the previous period. Consequently, after adding the replenishment flow, the revenue share from Allbirds' email flow increased by approximately 25%.
2. First Purchase Bounce Back Flow
A common challenge for e-commerce(or DTC) brands is ensuring that first-time customers make repeat purchases, as these first-time buyers often represent the largest segment of the total customer base of the brand. 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 AI’s 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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