Intelligent recommendations boost email revenue: case study
Leading online chemist Chemist Direct has reported a 30% jump in revenue from email campaigns after introducing intelligent recommendation technology.
The company introduced Peerius’ SMART-mail software as it looked to grow the income generated by a weekly marketing email that recommends eight products to customers on its mailing list.
The software takes customer data and uses algorithms designed by Peerius working with Chemist Direct to recommend the products most likely to appeal to individual consumers. If a customer interacts with Chemist Direct after the email is sent but before it is opened, the extra data generated is automatically taken into account to update recommendations.
Chemist Direct phased introduction of the Peerius solution in order to gauge results. In the first week, 75% of emails were sent in the old way and 25% were sent using Peerius. The results shows that the total campaign revenue rose by 60%, and the conversion rate by 25%. Revenue grew by 30%. In the five months since, average order values have risen by more than 10%.
Richard Garrod, marketing director of Chemist Direct, said the new solution had delivered a significant boost to its email marketing campaigns. “It has taken Chemist Direct’s email marketing to a new level,” he said. “By factoring in customer behaviours its means we offer them what they really want, not what we think they need. As the numbers prove, we now have happier customers and a healthier bottom line.”
Chemist Direct was founded in 2007 and now offers a range of 20,000 health and beauty products to its customers.