Optimize Customer Acquisition With Personalized ExperiencesJune 23rd, 2022
New customer acquisition is arguably the most important piece of scaling a business, and the organizations that can do it the most efficiently rise to the top. However, as privacy and tracking concerns are shifting the digital marketing landscape, it is becoming increasingly difficult to make optimizations for CAC (customer acquisition cost) in media platforms. To combat this, forward-thinking digital marketers are focusing on optimizing experiences that they own - and therefore are more measurable and controllable.
Optimizing Experiences With Personalization
When most marketers think of optimizing on-site experiences, they typically think of simple A/B tests - testing button colors, CTAs, imagery, etc. This is a great place to start, but all too often these simple tests ignore a foundational principle: different cohorts of users and customers behave differently and should therefore have different experiences. This is where audience-based A/B testing and dynamic web personalization step in. By leveraging platforms that allow for audience-based testing, marketers can better understand how different audiences behave and then curate more optimal experiences for them. Especially as marketers look to reduce CAC, being able to deliver new users more bespoke and tailored experiences can reduce friction and increase conversion rate.
Read the case notes below to learn how VividFront helped a luxury jewelry brand drive significant revenue by providing a more tailored experience for new users.
The Problem: Luxury jewelry brand FREIDA ROTHMAN wanted to increase the cost-efficiency & ROMI of their new customer acquisition efforts.
Key Insight: New site visitors receive a pop-up modal form to sign up for the FREIDA ROTHMAN newsletter in exchange for a 10% discount on their first purchase. However, if the user closes that modal, they cannot navigate back to the coupon code for redemption.
The Solution: VividFront recommended A/B testing the addition of a sign-up form link to the promotion banner at the top of the site against the current promotion banner with no link. This A/B test was served exclusively to users new to the FREIDA ROTHMAN site.
Results: After 90 days of data, the experience that included a link to the sign-up form in the promotion banner led to stat-sig higher revenue per session and an increased conversion rate. Using statistical models from Google Optimize, we forecasted that deploying the "winning" experience to 100% of new visitor sessions would lead to a 6-figure increase in annual revenue. Using the business intelligence gleaned from this study and statistical model, VividFront deployed a dynamic personalization to ensure that all new visitors to the site were served the higher-performing experience.