1-800 Contacts is an American contact lens retailer based in Draper, Utah. Since its founding in 1995, the company has pioneered online contact lens sales and prides itself on its customer-first approach and willingness to challenge industry standards.
1-800 Contacts was looking to tailor its discounting strategy for efficient spend, while maintaining a high level of customer satisfaction. By implementing Namogoo’s Intent-Based Promotions, they could move away from blanket discounts to dynamic, personalized offers based on real-time customer journeys.
The Challenge: Increasing Spend Efficiency with Targeted Discounting
The pricing team at 1-800 Contacts manages both the retail price and the discounting strategy and is tasked with increasing orders while maintaining the same level of spend per customer. The company sells a range of about 200 eyewear products and aims to offer competitive base prices while providing discounts to customers who need them.
Before adopting Intent-Based Promotions, 1-800 Contacts offered a simple % off discount to first-time buyers. The discount levels are 20%, 25%, or 30% based on the time of year. The team was looking for a way to better target discounts, offer them only to the customers who need them, and thereby reduce their overall spend on promotions.
The Solution: From Blanket Discounts to Intent-Based Promotions
1-800 Contacts looked at a few options for targeted promotions and eventually chose Namogoo’s Intent-Based Promotions engine. After implementing the relevant script, Namogoo’s Intent-Based Promotion highlights the best clients to offer discounts to, allowing 1-800 Contacts to adopt a more targeted and accurate promotion approach.
“The main thing we liked about Namogoo was how simple it was to use. Namogoo is very intuitive and we could get non-technical people using it quickly.”
The team also appreciated the flexibility Namogoo provided. They could use their own banners and messaging rather than the built-in ones, which helps them maintain consistent branding throughout the customer journey.
The Results Are In…
Using Namogoo, the team can now offer dynamic discounts tailored to each visitor based on a reliable predictive engine. This helps them convert more visitors while spending less on promotions, and only offer higher discounts in situations where it is likely to drive a purchase that would not have happened otherwise. And, according to Tyler, the platform has helped the team reach additional insights into shopping behavior:
“Namogoo has helped us understand our audience better, and have more intelligent conversations about pricing and promotions across different segments.”
Business Outcomes Achieved:
- 3% net increase in conversion rates.
- By targeting promotions more efficiently, 1-800 Contacts achieves more efficient spend while maintaining the same level of orders.
- Individual team members can now set up campaigns themselves in a matter of minutes.
- Beyond just saving on promotions, 1-800 Contacts gained valuable insights into their customer segments.
They now plan to focus Intent-Based Promotions primarily on new visitors in the near term, while developing customized strategies to better target returning visitors moving forward.
