Case Study: How to Increase the Active Customers Number by 20% Using Segmentation

About the Project

The company that turned to Yespo for help is an online clothing store. They offer casual, elegant, and sporty women's clothing, shoes, and accessories at an affordable price.

The Task

The main goal we set was to increase sales with the help of email newsletters and encourage customers to make repeat purchases with the help of promo letters. Our collaboration with the store lasted for two months, from May to June 2023. 

Solution

Before creating a sales-driving email marketing campaign for this store, we decided to audit the newsletters they used to send to their customers. So, we took their typical promo newsletter and analyzed its main KPIs. 

According to the audit results, the main problem was related to clicks. 

We discovered that customers don’t click on the product cards despite them taking a large share of the letter content. At the same time, the main banner and CTA had excellent click-through rates. 

The letter content was pretty generic, so we came up with the following hypothesis. It would be possible to increase click-through and conversion rates by adding more relevant product offers, for example, personalizing them by size. However, the trick was that first, we had to gather information about customers’ preferred sizes since the store didn’t have this data in their database. 

We decided to improve promo letters in the next way: 

Step 1. Since the store sells diverse clothing of all sizes, we decided to segment the customers according to the size they fit and then send relevant promo offers for each category.

We also added buttons that lead subscribers to the necessary size group.

The experiment was successful. For example, the XXL button was clicked twice as often (11% and 24%). In the next letter, two size buttons were also added. The results of the newsletter confirmed the previous experiment, there were twice as many clicks on XXL sizes. From this newsletter, 10% of all those who open our letters have joined the XXL contact group:

Being guided by the open rate of the previous letters, we conducted another experiment and sent a promo to a group of XXL contacts. The letter was exactly the same as the previous ones, but we offered items of XXL size only:

General activity in different segments:

The best results were shown by sheets with XXL sizes. It should also be noted that the subject line of the email did not specify the size. Instead, it sounded like “Discount for your size”. 

When we created these letters, the segmentation was done like this:

• an event was manually created in the account,

• an event was attached to the button in the letter itself, 

• by pressing it, the customer was added to the right group of contacts.

At the moment, Yespo has implemented subscription categories. This is a more convenient functionality, with the help of which the customer joins a certain category of subscriptions depending on their preferences, and, in this way, they will receive only relevant subscriptions. To set it up, you need to create new categories in your account and configure the integration. The customers will be divided into groups automatically. 

Step 2. As a new experiment, we suggested the customer try a new email marketing approach and run a monthly sale for subscribers. The customer approved the idea and we began to warm up the subscribers’ interest. First thing first, we created a letter block informing subscribers about monthly sales.

Since during the audit, we discovered a problem with the product cards (the customers didn’t click on them), we decided to make a shorter monthly sale promo letter, leaving only the banner and a CTA button:

The first letter with the new design showed a 41.2% CTR and 25% of sales from all promotional newsletters of the month.

The Results

After carrying out all the planned activities regarding promo newsletters, we achieved the following results:

Based on this data, we can conclude that:

• The customers’ engagement grew almost twice;

• The sales grew 1,2 times due to more relevant and personalized offers. 

Conclusion

A non-standard approach to promo newsletters based on customer segmentation allowed us to increase the number of active customers in a short period of time and boost sales. You are also welcome to leverage out-of-the-box tactics with Yespo and give your next email marketing campaign a shoot!