Combining Flagship And Distributors Channel

Background

An international brand was making sales in China through Daigou (an overseas personal shopper) and wanted to capitalize on this opportunity directly. They opened their Tmall Global flagship store and now had to win over the existing customer base while conquering and retaining new ones. Daigou’s low selling price was a significant challenge. The brand had to take back ownership of the pricing structure and restore its premium pricing without antagonizing its fan base.

What we did

We built a loyalty program designed to provide both short- and long-term benefits, facilitating migration to our store while providing diverse long-term incentives to stay with us without dragging down pricing. We then used our machine learning capability to identify and segment customers, creating personalized promotions and maximizing retargeting campaign results. High customer engagement and satisfaction with our program made it possible to launch a successful “word of mouth” campaign and gain significant KOC endorsements on social media platforms.

After one year

The loyalty program exceeded 13,000 club members, 41% of whom made multiple purchases from our store, with an average order value more than twice that of non-club members. We segmented club members into more than 90 groups, and our accurate retargeting drove high retention and sales growth. Tmall acknowledged the store’s performance and awarded us the “Star of marketing innovation” for excellent customer acquisition and retention results.