Challenge | Opportunity:
This large retailer desired greater sales from both organic repeat customers as well as to stimulate new customer acquisition.
During the Scope phase of the project, operationally defined metrics for organic and new customer performance were agree upon. Historical performance was statistically and graphically analyzed to characterize performance and establish baselines (seasonal and de-seasonalized).
The team agreed that two Experimental Design Research, EDR, projects would be pursued in driving traffic to the eCommerce site, organic and new customers. One EDR would be employed to evaluate tactics that drive customer engagement (CX), i.e., sales conversion and average order size. Ideation generated well over 100 creative and innovative ideas. The ideas for experimentation were selected based on boldness, readiness for testing, and cost. Examples of Test Factors to stimulate traffic: SEO, Google Ads, FaceBook Ads, direct mail (based on psycho-graphics), text, email, message content, frequency of touch, and creative elements. Examples of the CX EDR Test Factors included onsite offers, banners, creative elements, product placement, content messaging, site navigation, etc..
Across the three EDRs, over 40 ideas were evaluated within weeks. EDR Guidance yielded the optimal conditions to drive traffic and the customer experience. Analysis showed 12 ideas making a positive difference in traffic, conversion, and average order size, while the rest, 28 ideas either hurt results or had no statistical impact.
Within 6 months, online sales doubled, conversion rate increased by over 10 percentage points, and average order size increased significantly.
Additional improvement is expected from further EDR evaluation. The vision is to utilize EDR going forward to optimize the outreach process and to further stimulate the on-site customer experience for higher sales.
Quantum Effect Consulting delivers data-based business results. We specialize in improving innovation outcomes, operational excellence, and inspiring your team. Headquartered in Nashville, we consult across the USA.
Our proprietary EDR Process affords the most effective and efficient innovation platform in the evaluation of your creative ideas to drive business outcomes.
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