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WAG Boosted Revenue 30%, AOV 10% With Trial of Personalized, Intent-Based Promotions

WAG Boost Revenue AOV With Personalize Intent Based Promotion

Natural dog treat brand WAG had cultivated a reputation for offering a premium line of goods, but despite the boom in pet ownership during COVID-19, WAG wasn’t able to generate the revenue growth and average order value improvements that it sought. The brand faced issues including cart abandonment, limited shopper engagement and lukewarm customer loyalty.

WAG first tried to leverage its Good Dog Club loyalty program to address these challenges, but despite the Club’s combination of new product alerts, promotional offers, text campaigns and emails, customer loyalty was still lagging.

The Victoria, Australia-based company was resistant to using site-wide promotions to boost sales and AOV, worried that these tactics would dilute the brand’s reputation as a premium line of goods. Additionally, the brand wanted a strategy that would provide consistent benefits rather than the spikes that discounts and promotions typically generate. “We wanted something that would work for us every time,” said Rama Kannan, Senior E-commerce Marketplace Specialist for WAG in an interview with Retail TouchPoints.

WAG decided to partner with Namogoo, the digital continuity SaaS company known for its platform that thwarts customer hijacking and relies on behavioral analytics to tailor the online experience to individual customers by gauging online shoppers’ purchase intent. Indications of high intent meant that a shopper would be likely to make a purchase whether the item was on sale or not; low-intent shoppers would require more incentive to hit the “buy” button.

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A two-week trial generated significant results, including a 30% revenue increase and a 10% AOV spike, which encouraged WAG to deploy the solution on a permanent basis.

Additionally, WAG wanted to achieve the following goals:

  • Elevate conversion beyond the occasional spike in sales that resulted from its intermittent blanket-discount campaigns through The Good Dog Club;
  • Reserve promotions personalized with intent-based data for shoppers who needed to be enticed to buy;
  • Preserve WAG’s margins by limiting discounts and not offering promotions to shoppers who exhibit a high intent to purchase; and
  • Maintain WAG’s branding as offering premium goods.

“WAG was experimenting with some promotion strategies prior to implementing Namogoo’s intent-based promotions; however, only a few of them worked,” said Kannan. “Namogoo’s intent-based promotion, which was curated to each individual customer, was something that was appealing to us.”

The Namogoo technology allowed WAG to customize every experience for each user, including adapting discounts according to whether the customer was returning or a new client. Shoppers exhibiting high intent to buy would not receive a discount, and the solution preserved WAG’s premium image by offering promotions selectively rather than sitewide to every shopper.

“We don’t want to start giving discounts to everyone, but some customers really need the discount to convert and we’re also helping to find the right discount for them,” said Rotem Yohanan, Customer Success Manager Team Lead at Namogoo in an interview with Retail TouchPoints. “Some will not get the discount because they have really high intent to buy on that day so they don’t require the discount in order to purchase.”

Within two weeks of launching this new intent-based promotions (IBP) approach, WAG saw benefits — a 10% AOV increase and revenue growth of 30%. The IBP solution, which uses machine learning to predict in real time the intention of WAG’s customers, was combined with the company’s custom business metrics and KPIs to ensure there would be no negative impact to its margins.

“We actually see a lot of conversions from customers that didn’t get a discount. This is a good validation that it’s working,” said Yohanan. “WAG was able to optimize the costs of their promotions and increase the conversion, which led them to spend [20%] less on advertising later.”

The Namogoo technology was integrated with WAG’s existing ecommerce platform, which is powered by Shopify. Kannan noted the ease of the implementation process and was also impressed with Namogoo’s dedication to troubleshooting and leading the brand through any difficulties that occurred.

“Implementation was quite easy and straightforward. We had some teething issues but the developer team was helpful and responsive to our requests,” said Kannan. “In the long term, our abandoned cart rates decreased by a considerable amount.”

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