The Problem: WAG needed to increase sales without sacrificing their margins.
WAG, an Australian owned premium natural pet food brand, was founded by Jeremy Goldman ten years ago, when he wanted to create a 100% natural, healthy, grain-free, additive-free treat for his dog.
Since COVID-19, their online activity has ramped up significantly. One of the reasons for this rapid growth was the pet adoption trend during 2020, resulting in increased online shopping and website visits.
WAG’s focus is to increase their customer base and loyalty program, “The Good Dog Club,” with emails about new products, special offers and more.They also used segmentation to incentivize their loyalty members with occasional perks via SMS and email subscriptions.
As a premium brand, offering site-wide promotions wasn’t their main strategy as they didn’t want to dilute brand perception. They tended to experiment with promotions in random flash sales during special times of the year to reduce user abandonment, increase conversions, and see what worked best to increase loyalty. However, even though WAG sales skyrocketed due to these promotions, they needed to find a strategy that would help them increase sales without hurting their margins.
The Solution: Personalize Promotions for Each Shopper with Intent-Based Promotions
For Rama, WAG’s Senior e-Commerce Marketplace Specialist, the machine learning feature of Intent- Based Promotions caught her attention immediately. Being able to leverage Namogoo’s predictive engine and personalize promotions for every shopper on their site based on real-time intent, was a real game-changer for them.
“In the pursuit of maximizing profitability, we found that using Intent-Based Promotions was a highly effective way to increase our margins. I never thought I’d find a tool to help with our pain points until we found Namogoo. Now we get to work on a long term strategy while focusing on gaining back those margins lost.”
As WAG uses Shopify for their online store, they were impressed by the straightforward process and smooth integration with the Intent-Based-Promotions plug-in. It took only 30 minutes for their developer to integrate it into Shopify and they were up and running in less than an hour.
They also found the design studio easy to understand and creating the campaign was straightforward compared to other tools they’ve used in the past.
“The sales team provided a lot of value and input on campaign best practices, and every request was taken care of efficiently. The team is highly responsive and I appreciate the effort in their customer service.“
The Business Impact: WAG increases its revenue and saves their margins
With minimal effort required on their side, Rama and the team at WAG were able to get the business output they needed while delivering on the business KPIs they wanted. Furthermore, they were able to reduce their ad spend by 20% due the conversion rate uplift they experienced with Intent-Based-Promotions solution.
Major results included:
- 10% increase in AOV within 2 weeks of the campaign launching
- 30% increase in revenue
“We’ve significantly increased our revenue since launching Namogoo’s Intent-Based-Promotions tool. It’s great that we’re not giving the same promotions to everyone, so we’re able to personalize the user experience without impacting our margins.”
They’re also seeing less complaints about their coupon codes. Shoppers are able to copy and paste the coupon code directly to their cart to get the discount offered. Seeing less complaints from their shoppers has improved the customer experience altogether.
Conclusion
WAG was able to tap into their website shopper’s intent, learning about each of their unique signals and behavior each time they visited the site. Namogoo’s Intent-Based-Promotions tool, the first promotion machine that individualizes promotions in real time, delivers the minimum promotion needed, or no promotion at all, to convert them at the right time in their journey.
Rama and the team at WAG were able to drive shopper retention and loyalty, maintain a healthy brand perception and avoid promotion overspend without impacting their margins.
