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Industry: Retail
Location: Paris, France
E-commerce businesses use Formaloo to get striking results in their revenue. The fashion e-commerce in this case study is based in Paris, France, and was founded in June 2018 to offer trendy yet sustainable fashion products to consumers. Read on to see how this fashion e-commerce boosts its revenue.
32%
Reduction in churn rates
31.7%
Increase in monthly revenue
40%
Increase in customer lifetime value
With Formaloo, we track customer trends and nudge customers in order to take a specific action, whether that’s to suggest a specific product to friends or shop again and again.
— CAMILLE, MARKETING DIRECTOR
The challenge
Increase purchase rates and monthly profit
This e-commerce fashion company sells more than 12,000 products online throughout Europe. Its challenge is differentiating itself from other online fashion retailers. Many customers do not even remember which fashion shop they bought from since they generally purchase branded products, says Camille. The team wanted to find a way to increase top-of-mindedness and repeat purchase rate and to stand out from competitors.
The solution
Track and analyze existing customers’ data within a tight timeline and launch marketing campaigns based on data insights
Searching for technical solutions to grow much faster in just six months, the company discovered that Formaloo provided a means to quickly accomplish its goals. Since Formaloo could create a single understandable profile for each customer and give insights to grow purchase rates, it was the perfect choice for engaging customers to buy more frequently.
Therefore, using custom actions in Formaloo, they incorporated a scoring system that helped the marketing team focus on customers that are more likely to close. They also learned about ways they could engage customers who were about to leave their shop and encourage them to buy again from them.
Formaloo suggested the right amount of discount to specific customers who showed specific shopping patterns and predicted to shop given that discount. The fashion shop also used Formaloo to understand which products need how much discount to be sold while leaving an acceptable profit for the business.
The results
In conclusion, since implementing Formaloo, the online fashion shop has been able to gain a deeper understanding of its customer journey. They now know exactly when, why, and how people get stuck before buying or listing a fashion item.
With Formaloo, they understand how they can offer their best products to which customers and with how much discount. After four months of running campaigns based on Formaloo insights, they reduced their churn rates by 32% and they managed to engage more of their existing customers with the products.
“Being able to understand our customers and provide the best offers to them has worked perfectly for us. Formaloo helps make our data more valuable.”
Have a fashion e-commerce business? Here’s your opportunity to grow your business faster.
