Personalization and Incentives Increase Folica’s Conversion Rate

PROBLEM: Folica, an online retailer of hair and beauty products, wanted a more personalized approach to engage its loyal "elite members."

SOLUTION: Hired an online provider of testing and personalization solutions to implement a new marketing strategy.

RESULTS: Folica increased its conversion rate 68 percent through the use of personality-driven technology and email campaigns in the first year it worked with a third-party testing and personalization solutions provider.

The importance of personalization in marketing campaigns is occasionally underestimated. It's proven to be a key ingredient to the success of online retailers.

Folica, an online retailer of hair and beauty products, wanted to show appreciation for its loyal customers, specifically its "elite members." Folica invites customers who have placed at least two orders with the brand to join its loyalty club, which qualifies the customer to receive special offers such as access to private sales and discounts. The retailer sought out the services of a third-party personalization provider to help it better target and engage its loyalty club members.

Folica turned to SteelHouse, a behavioral commerce company, for help. SteelHouse's e-commerce platform enables Folica to serve shoppers in real time, then use that live data to create and launch targeted email offers.

"By combining behavioral data with the ability to personally and instantly engage with customers, SteelHouse enables marketers to guide, influence and encourage their shoppers in ways never seen before," said Mark Douglas, president and CEO of SteelHouse, in a company press release.

By sending targeted email offers in real time to engaged shoppers, Folica increased its conversion rate by 68 percent compared to previous email campaigns. In addition to strengthening its relationship with its most loyal customers, Folica was able to increase its average order value and bottom-line revenue as well.

Folica was pleased, to say the least, with SteelHouse's platform.

"SteelHouse's platform made it simpler than ever for us to segment our loyal shoppers and reward them with the appropriate offer," said Jessica Bohm, director of marketing at Folica "With its technology, we can continue to deploy real-time offer campaigns to shopper segments that will help us further engage with our customers and maximize conversions. We look forward to growing our success with them every month."