Case Dekbed Discounter
It’s 2014, when the then 25 year old Niels Verwij starts Dekbed Discounter. At that moment in time, the bedding industry in the Netherlands is dominated by a couple of big players and Verwij is ready to enter the market full swing. His strategy is based on 3 pointers: Smart purchasing, savvy marketing and an unrivalled customer service. Dekbed Discounter would double its growth every year and go on to earn no less than €32 million revenue, just 6 years after its founding.. (Source: Twinkle100, 2019. The online shopping ranking for dutch businesses)
From the start, all marketing channels have been utilized in order to create as much inbound traffic as possible. This has obviously worked very well, nonetheless a couple of challenges appeared alongside. How are online- and offline channels to be balanced, in terms of synergy? How can these marketing channels be set-up to complement each other? How does one measure results?
In order to maintain the company’s impressive growth, Dekbed Discounter would need to find a way to manage the data and their marketing channels. A Customer Data Platform (CDP) seemed to be the right solution and soon one was implemented. At first, the results were all good, but the limitations of the selected CDP quickly started to halt Dekbed Discounters ambitious growth. Further, cross-device options turned out to be limited and the tracking wasn’t accurate enough. For example, the customer’s “buying phase” wasn’t being logged correctly. This would result in the website showing ineffective on-site persuasive messages to customers. Lastly, the results of each individual marketing channel couldn’t be measured accurately. At this point Dekbed Discounter decided that it was time to find a new CDP.
Dekbed Discounter had often collaborated with e-commerce agency Yellowgrape, in their search for a new CDP they decided to work together once again. Together they presented the aforementioned challenges to Squeezely. Important CDP pointers would be the quality of the data, the price-quality comparison and the user interface of the CDP solution. After a short test period, both Yellowgrape and Dekbed Discounter were convinced that the Squeezely CDP software would help them reach their ambitious goals regarding personalisation and synergy of all marketing channels.
Divided into two phases, it took Yellowgrape less than 4 weeks to implement Squeezely. Phase 1 was all about collecting customer data and building new, high-quality 360 degree customer profiles. Data that wasn’t previously available to Dekbed Discounter, was now being logged and mapped: Consumer interests in categories and products, customer buy-phases, items abandoned in shopping carts and historic order data. Within the Squeezely CDP, all the information gets collected and added to the right customer profiles. These customer profiles are subsequently used to build fresh new audience groups that can be targeted on several marketing channels including Google Ads, their email platform (Copernica), Facebook and Instagram.
It was decided that for an ultimate ‘customer is king’ experience, each visitor would require a personalized website. By applying personalized web elements, each visitor’s unique needs are better catered to. Dynamic banners and takeovers are techniques that highlight store-wide promotions or specific products that match a unique customers preferences. These banners and takeovers are applied automatically and show up based on a customers historic view- and click behavior.
The Squeezely CDP is designed to respond immediately to new data flowing in. Visitors receive subtle pop-ups incentivising account creation or mentioning non-purchased shopping cart items. Real-time modifications are made based on the visitor behavior by potential- and returning customers. Are customers hovering in the orientation phase? In that case the CDP will offer them the unique selling points (USP’s) of Dekbed Discounter. Likely, customers in the decision phase receive notifications based on social proof. For example, how often has their product of interest been viewed in the last hour, how often has it been purchased in the last couple of days and how much is actually left in stock? Optimisation carries through to the checkout flow, where visitors are subtly incentivised to complete the payment process. Additional last minute purchases are always one click away, establishing refined upsells that power great results!
Different marketing texts and creatives can be continually applied and tested within Squeezely CDP. The data eventually tells us which combinations convert into the best results. These quality tests are executed within the platform, resulting in quick and efficient launching of the best incentives.
The general Dekbed Discounter marketing strategy is: Going all in to achieve maximum growth. It’s an approach based on numerous store promotions and its marketing is primarily focussed on acquisition. With the data-collection power of the Squeezely CDP, it is now possible to shift focus towards the collected data and open up to the possible benefits of increased customer retention. Personalized retention can help create a growing audience of long-term customers, whilst increasing the value of all remaining acquisition efforts.
Yellowgrape has used these insights to develop campaigns that stimulate repeat purchases, resulting in a more balanced division of acquisition and retention. These campaigns run on a wide variety of marketing channels: email, socials, display and on site.
Dekbed Discounter had always relied on email marketing, yet the new retention strategy has lifted its importance to an all new high. Dekbed Discounter uses Email Service Provider (ESP): Copernica, which is easily linked to any CDP thanks to its multi-layered database structure.
In order to decrease customer churn and increase retention, specific email campaigns have been designed. The emails in these campaigns are filled with unique content, based on the varying customer profiles in the Squeezely CDP. When a customer shows interest in a certain category, a fresh newsletter is automatically created. This newsletter will solely contain inspirational content and a possible promotion from the customers category of interest.
Moreover, Squeezely stores every customer's order history. Combining a product’s life cycle with a customers order history allows for great timing when it comes to incentivising a retention purchase. Business Intelligence (BI) software is used to determine these ideal marketing moments. With this BI information, Squeezely CDP builds customer journeys. Based on these customer journeys, triggers are sent to Copernica and emails with purchase reminders or customer loyalty incentives are sent out to customers. One other advantage is the fact that order value generally increases with repeat purchases, meaning that customer retention is a more sustainable approach driving long term revenue for Dekbed Discounter.
Ever since switching from its old CDP to Squeezely CDP, Dekbed DIscounter has been able to generate high-quality customer profiles and reach its customers in a more personalized and relevant manner. Only a couple of months have passed, yet increased results have already been measured thanks to smarter budget allocations.
Yellowgrape: “Website personalisation has been the key success factor for e-commerce in the last couple of years. Squeezely CDP offers us the tools to maximize the amount of converting customers every day.”
The next couple of months will be all about analysing customer behavior and evolving Dekbed Discounter’s inspirational email campaigns in order to match the purchase intentions of (potential) customers. Squeezely, Yellowgrape and Dekbed Discounter work together closely to ensure all the desired tools are available and campaigns launch successfully. Altogether, hyper personal marketing campaigns are on the way.