250% Conversion Rate Increase AND Higher Revenue Per Sale with Variable Offer Targeting
An e-commerce company based in British Columbia that sells outdoor utility tools needed to increase their conversion rate from a desperately low level of less than 1% of marketing leads to sales.
We identified another business opportunity with the popup discount code they were using.
Since DXi predicts likelihood to purchase, we knew we could target customers who were already going to buy with a lower automatic discount code, saving thousands of dollars per month, while simultaneously getting those customers to the product they wanted faster.
User interaction data from the website was captured through the DXi tracker code and processed through one proprietary DXi algorithm and 25+ other machine learning algorithms to compute likelihood to purchase for every visitor on the website.
The prospects were then segmented as High, Medium, and Low probability of conversion.
Variable Offers (based on the score) were configured to target different prospect segments with their predicted product of purchase identified by DXi Tool. The tool was configured to flash variable and personalized offers to the web visitors on their second visit.
Existing customers were categorized into groups ranging from loyal to at-risk to enable targeted marketing campaigns.
The targeted variable offers were all that was needed to transform conversion rate.
In the first month, the conversion rate doubled from 0.5 % -> 1%
In the second month, the conversion rate increased again from 1 -> 1.44%. The overall increase in conversion rate was over 250%
Where before everyone received a blanket 20% discount on the second visit, with DXi integration 57% of the converted users utilized a 15% offer instead. This resulted in savings of more than 3% of the total revenue of sales during that period, while simultaneously increasing conversions.
Known customers with their loyalty score, segment, and predicted product of purchase were provided a download based on which customers were targeted with relevant offers resulting in higher retention.
“DXi’s ability to listen to an organization’s needs for increased conversion rates for both ecommerce and non-ecommerce sites is unbelievable. Their machine learning platform has worked for improving my conversion rates and I would recommend their solution for anyone looking to do the same.”
–Gary Davey, President