Managers wanted to optimize online marketing, but realized most of the emails sent out were ending up in spam folders, and those that did arrive in the right inbox weren’t being opened or acted upon.
Studio Moderna selected IBM Marketing Cloud to help it establish an automated system for delivering highly relevant emails to new and existing customers.
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Business challenge story
Lost in the InboxA few years ago, Studio Moderna’s management realized that despite its success, a lot of money was being left on the table. The reason: Although the company was generating a massive amount of customer data through a wide range of online, offline and media channels, it had no way of using it to optimize its online marketing. As a result, most of the emails the company sent out were ending up in spam folders, and those that did arrive in the right inbox weren’t being opened or acted upon. Managers realized that addressing these problems could unlock significant business potential. Specifically, there were three objectives Studio Moderna wanted to achieve:
Revenue growth: Improve email deliverability in the face of constantly changing Google Mail algorithms and local ISP filters.
Higher customer lifetime value: Increase email open and click-through rates by making emails more relevant to each consumer through sophisticated use of behavioral data.
Email marketing efficiency: Automate the processes involved, while still enabling a high level of personalization.
The only question left to answer was “How do we make this happen?”
Building an Automated, Personalized Marketing MachineStudio Moderna selected IBM Marketing Cloud to help it establish an automated system for delivering highly relevant emails to new and existing customers. The solution consisted of three key elements.
First, the IBM Marketing Cloud deliverability team focused on ensuring emails from Studio Moderna actually arrived in the intended recipients’ email inboxes by improving the company’s whitelisting reputation. A dedicated IP address was set up as the source for all communications, and send-out phases were aligned with those of the big regional ISPs.
Next, Studio Moderna built individual user profiles by integrating data about its online, email, TV and offline shopping habits, and combining it further with other data sources such as loyalty program and purchase history information. Using data queries and relational tables, IBM Marketing Cloud gives Studio Moderna a wealth of insight to use in tailoring marketing campaigns with dynamic content aimed at specific users, within the context of other variables, such as seasonal promotions.
Finally, email marketing automation has enabled Studio Moderna to process ever-increasing volumes of data and use it to react to events with user-specific communications that increase the likelihood of a sale. These events include everything from the abandonment of an online shopping cart to a product view autoresponder campaign to a campaign based around browsing products and ratings.
Increasing Email Opens, Clicks and SalesThe results of the IBM Marketing Cloud implementation have been nothing short of spectacular for Studio Moderna. The white-listing reputation work has increased email deliverability from 20 percent to 99.9 percent. The ability to combine data sources to create complete customer profiles has enabled the company to make its communications far more relevant and timely, resulting in a 59 percent increase in email open rates and an 8 percent year-on-year increase in click-throughs. Better still, Studio Moderna now generates 30 percent of its total revenue through IBM Marketing Cloud-enabled automated emails.
But that isn’t the end of the story, as Studio Moderna Head of Digital Jernej Petrin explains: “The tailored emails we now generate enable us to have a proper conversation with each customer, as well as maximizing open and conversion rates. This is vital within the context of competition for attention from other online marketing channels such as Facebook and search engine advertising. By the same token, it’s also vital for us to be able to use data from social media platforms or search engines and synchronize it with email and the behavioral data we’re generating. Doing so will enable us to make the user experience even more personal, and that will drive our business success and sales growth in the future. IBM Marketing Cloud will be at the heart of this process.”
About IBM Marketing Cloud:
IBM Marketing Cloud, part of the IBM Marketing Solutions portfolio, powers the delivery of exceptional experiences for customers across the buyer journey by leveraging customer data and behaviors, providing analytical insights and automating relevant cross-channel interactions. The cloud-based digital marketing platform provides email marketing, lead management and mobile engagement functionality to inform and drive personalized interactions in real time. To find out more, please contact us at 1-866-745-8767 or +44 20 7202 5930 and visit ibmmarketingcloud.com.
About Studio Moderna
Studio Moderna’s leading e-commerce and retail platform for consumer electronics reaches 300 million consumers in 20 countries across Central and Eastern Europe. Every year, the company handles 8.5 million orders across a range of more than 300,000 products, including its own proprietary brands in the home care, health & beauty, sport & fitness, and leisure categories. It also manages 150 transactional websites, more than 100 Facebook pages, 311 retail stores, 30-plus call centers, and has coverage on over 400 TV channels, including three that it owns itself.
- Retail: Smarter Shopping Experience
- Watson Campaign Automation (All Editions)
- Watson Customer Engagement
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To learn more about IBM Marketing Cloud, please contact your IBM representative or IBM Business Partner, or visit the following website: ibmmarketingcloud.com
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