An international brand was making sales in China through Daigou (oversea personal shopper) and wanted to harvest 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 to face. The brand had to take back ownership of the pricing structure and restore its premium pricing without antagonizing its fan base.
We build 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 employed our machine learning capability to identify and segment our customers to create personalized promotions and maximize re-targeting 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.
The loyalty program exceeded thirteen thousand club members, of which 41% had multiple purchases from our store, with an average order value more than two times greater than non-club member customers. We segmented club members into more than 90 different groups, and our accurate re-targeting led to high retention and sales growth. Tmall acknowledged the store performance, and they awarded us with the “Star of marketing innovation” for excellent customer acquisition and retention results.