Case study: Data shapes targeted e-mails to build beauty site loyalty

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Discount Beauty Center
Discount Beauty Center

Discount Beauty Center, an online supplier of cosmetics, fragrances and hair care products, wanted to find a way to build relationships and consumer loyalty after determining that 88% of its 100,000 customer base are first-time customers.

The company worked with Listrak, its e-mail services provider of nearly 10 years, to devise a strategy. The main challenge for Listrak was really about re-engagement.

“One thing we have learned is there is not a lot of loyalty on the Web,” says Chip Eisenberg, president of DiscountBeautyCenter.com. “Most people just Google what they want and the businesses with the best organic placement or the best price gets those customers.”

Strategy:

Listrak took all of Discount Beauty's client customer data and determined which products were in the highest demand.

It found that hair dryers and flat irons had a high reorder rate as did staples like shampoo and conditioner. Additionally, it found a “fairly significant” b-to-b population on its list made up of hair and beauty professionals, says Ross Kramer, CEO of Listrak.

Next, it focused on sending less e-mails, but placing an emphasis on those with a higher ROI, such as those with a “reorder” reminder. Its initial approach, beginning in April, provided a discount of $5 off a purchase of $25 and up. It produced about a 6% click-through rate and a 22% open rate. Two days later it resent that same message to individuals who had not opened the message but with a new subject line, resulting in a 4.6% click-through rate and a 17% open rate.

It followed up with an additional campaign offering a 10% discount off an entire order. That resulted in a 3.3% click-through rate and a 14% open rate. “The first two campaigns have been more effective from the click through and open rates,” he says.

Results:

The campaign has yielded 74 conversions from 483 click-throughs to date. The first campaign received 34 orders at $1,494. The second campaign received 40 orders, at $3,708. “We had 74 orders divided by 483 clicks which gives us a conversion rate of 15.3%, which is pretty astonishingly good,” says Kramer. The company expects to continue to run the program for a year, and Eisenberg says he's pleased with the results due to “the low cost and high benefit.”

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