Anyone who’s visited a Søstrene Grene store knows the brand provides a unique in-store shopping experience. Now, they’re mirroring that distinct experience online. All thanks to its clever use of first-party data.
Renewal is at the heart of Søstrene Grene´s brand. That means the Danish retail chain’s customers must always be able to discover something new when they visit their local Søstrene Grene store. This commitment to freshness extends to the company’s web shop and app.
Søstrene Grene has a complex approach to retailing. In total, it sells around 4.000 products. Many of these products are sold for a limited time only. Once they’re out of stock, they’re really out of stock. And in their place comes a new cohort of products to delight and inspire its customers.
Every Thursday, this product drop hits. When this happens, Søstrene Grene renews up to 3-400 items. That translates to up to a whopping 70% of its product range across 110 product lines changing. Every year. The most popular products can sell out in a matter of days. Normally, they are not re-stocked due to Søstrene Grene’s focus on renewal.
At the same time, the brand strives to deliver experiences like no other, with relevant and personalised communications, product recommendations and suggested DIY projects.
So, how do you keep your marketing relevant and personal, when every week, many of your products disappear?
If executing this strategy doesn’t sound simple, it’s because it’s not. Every product represents a datapoint with which customers can interact. Introducing this many new data touchpoints – every week – poses an enormous challenge for Søstrene Grene’s marketing automation setup.
Rising to the challenge, IMPACT Extend and Søstrene Grene built a hyper-personalised marketing automation set-up which supports customers throughout the entire customer journey. All the way from their first email, to their first purchase, to becoming a Thursday product drop loyalist. The constant presence and red thread throughout the whole set-up? Affinity scoring. We’ll share more on that in the ‘Solution’ section.
On the way, we aimed to generate more traffic for the web shop and app, increase revenue per subscriber, and boost retention, basket size and quality traffic.
Here’s how we built a pioneering and scalable solution that embodies the Søstrene Grene’s commitment to renewal, delivers relevant product recommendations and personalised content, and enhances customer loyalty.
Søstrene Grene’s automation set-up is executed in-house by a small team. The retailer sends out 80.000.000 emails a year. Nearly every single one of those emails is personalised!
Søstrene Grene’s solution pushes the boundaries of traditional commerce through its orchestrated approach to utilising first-party data for personalisation purposes.
The technical set-up is a combination of Salesforce Marketing Cloud and the Relewise personalisation platform. This mix ensures scalability, security, collaboration, flexibility and a solid return on investment.
First up, by shifting to Salesforce Marketing Cloud, we were able to automate and personalise Søstrene Grene’s email flows. What used to be a lengthy, manual process of generating emails for 16 markets and 6 web shop markets is now replaced with a comprehensive automated solution. This has reduced time-to-market and frees up employee capacity to focus on bigger business development initiatives.
Next, affinity scoring. Relewise catches various user behavioural signals from Søstrene Grene’s customers’ engagement within the different product categories. Using these signals, it calculates the ‘affinity’ for a specific category, product or piece of content. This calculated affinity is used to personalise the customer experience, through optimising recommendations for products and content. Not only are these affinity scorings utilised in the recommendations but also as actual attributes to help define unique audiences. The advantage is that personalisation is conducted on a more advanced level.
Every week, the solution utilises signals and data from 300-400 new products and translates them into a highly customised recommendation of product or content as well as an automation flow, where each trigger mail is tailored to each recipient
One particularly interesting feature that contributes to the solution’s effectiveness is a new variant of ‘abandoned browse’, whereby we leverage and follow up on user behaviour from internal site search with abandoned search.
Combining and fine-tuning existing product and content recommendations with customised calculations such as ‘basket openers’ and ‘product margins’, helps to maximise revenue potential. We should also mention that ‘cart openers’ are calculated by market, turning a cultural difference into a benefit. Products that open carts in Denmark won’t always excite customers in France. Even better, this part is entirely automated.
Finally, utilising first-party data from a freshly-implemented customer data platform has been highly effective at elevating the differentiated communication within our email communications.
By embedding first-party data into affinity scoring, Søstrene Grene successfully stokes user curiosity, and over time, grows customer loyalty to its brand universe.
From the early days of its digital transformation, Søstrene Grene had a keen strategic focus on creating genuinely meaningful relationships with its prospects, leads and customers. What made this goal realistic was the use of first-party data, collected on its own premises.
Anchored in this strategy, the implementation of a state-of-the-art marketing automation set-up that utilises all available customer data, has secured a competitive edge in the online retail market for Søstrene Grene. But don’t just take it from us. We shouldn’t forget to mention that all of this has taken place in a new cookie-less marketing era. Which makes the results we’re about to share even more impressive.
Here are the hard numbers which prove how personalisation and activation of first-party data, enhanced the brand’s ‘experience like no other’ approach, delivered a solid ROI and sent customer loyalty skyrocketing:
• Revenue lift: Revenue per email up 303%
• Last-click attribution: ROI of 733% per email
• Customer Lifetime Value: Increased by 197%
• Returning customers: Increased by 142%
• New customers: Increased by 9%
• Basket size: Increased by 23%
• Quality traffic: Increased by 36%
• Time between purchases: Reduced by 3X
• Email subscribers: 16% of unique online customers are email subscribers. In fact, they drive more than a quarter (26%) of all the brand’s online revenue
• Internal efficiency: Employees spend less time on email flow creation
• NPS: Up from 69 (2021) to 73 (2022)
Thanks to this truly pioneering marketing automation set-up, Søstrene Grene has succeeded in staying true to its brand universe and maintained its atmosphere of ‘hygge’ wherever its customers meet the brand; whether that’s in-store or online.