wehkamp.nl retargeting drives relevance, reach and ROI

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1 wehkamp.nl retargeting drives relevance, reach and ROI Overview Business challenges Reduce website abandonment Increase relevance of the customer experience Solution Retarget abandoners with relevant, personalized offers and messages Target through display ads, product recommendations, and Used IBM Digital Analytics and its partners to retarget with relevance and personalization Benefits Increased sales-per-send ratio for marketing s by 271 percent, open rate by 23 percent and click-through rate by 68 percent Drove a 15-fold return on investment (ROI) from targeted banner ads Delivered a more personalized shopping experience to customers, providing wehkamp.nl with a clear competitive advantage Retailers cannot afford to let near-sales slip through their fingers. The next generation of personalized retargeting engages online shoppers with personalized content through multiple channels and touch points. This multi-prong strategy optimizes the user experience, drives conversions, and fosters customer retention. Online shoppers are discriminating. They browse pages, compare products and add items to a shopping cart only to abandon their sessions to continue researching elsewhere on the web. Retailers are challenged to quickly reacquire these consumers after they leave a site, or risk losing sales to their competition. wehkamp.nl, the Netherlands largest online retailer, is grabbing the attention of browsers and abandoners with a comprehensive behavioral retargeting program that uses display ads, s and on-site product recommendations to weave greater relevance into the customer experience, expand brand reach, and drive impressive sales gains. IBM Digital Analytics offers the ability to help businesses rapidly gain intelligence into social networks and online media sources through a cloudbased delivery model and incorporate this insight into their business processes to create smarter, more effective marketing campaigns.

2 I m very impressed that the ROI numbers from personalized banners are so much higher than from standard, nontargeted banners. We firmly believe that retargeting is a valuable way for improving our marketing communications. Ewald Hoppen Senior Web Analyst wehkamp.nl At the center of the wehkamp.nl initiative is a personalized display ad retargeting solution powered by IBM AdTarget data syndication platform and a leading pay-per-click retargeting solution that delivers billions of dynamically personalized banners per month. Rather than retarget prospects with broad generic ads such as brandlevel display ads, wehkamp.nl uses IBM Digital Analytics and an advertising network solution to deliver real-time ads of browsed and carted merchandise to would-be buyers in the hours, days, or weeks after their last wehkamp.nl visit. The product-focused ads deliver a higher degree of relevance and personalization than brand-level ads and the ads are paying off. The wehkamp.nl display ad retargeting campaign builds on the company s success with using s personalized to the individual s interests and history to drive repeat visits, conversion, and purchases. It s part of wehkamp.nl s business strategy to optimize personalization at every customer touchpoint, enabling wehkamp.nl to stand out to consumers in an era of non-stop information overload and diminished attention spans. Retargeting generates 15 times the ROI of untargeted ads The results from ad retargeting have been remarkable. wehkamp.nl, with thousands of products ranging from televisions to trampolines, is realizing ROI more than 15 times higher than its ROI from untargeted banners. This ROI figure takes into account the revenue that the ads divert from , paid search, affiliate networks, portals, and direct load. Smarter Retail: Instrumented Interconnected The IBM Digital Analytics and advertising network solution captures customer behavioral data, such as browsing and shopping history, which is compiled with profile data into a centralized data mart that helps to build user profiles and shopping recommendations to deliver targeted offers and marketing communications. The new architecture integrates the client s sales data with browsing histories and related marketing data. This information can then be shared with third-party banner ad companies and marketing businesses that develop targeted campaigns. Intelligent With the compiled sales and tracking data, various market factors such as population demographics and product preferences can be combined to build complex customer profiles. This information can be used to develop targeted and banner campaigns in real-time that cater to a shopper s individual interests and recommend products a shopper is most likely to buy. 2

3 Solution components Software IBM Digital Analytics IBM LIV IBM Product Recommendations IBM AdTarget For every Euro we put into the display ad solution, we see a huge increase in ROI compared to untargeted ads, said Ewald Hoppen, senior web analyst at wehkamp.nl. Generic, non-targeted display ads, or banner ads, have traditionally generated low response click-through rates when compared to paid search and marketing. But by making display ads relevant to a shopper s known product interests and recent website activity, wehkamp.nl is seeing click-through rates of nearly one percent with targeted banners about five times better click-through performance than untargeted banners. You read a lot about people being tired of banners or not seeing banners, but it turns out they do see banners if they are relevant, Hoppen said. It s a real eye-opener to see banners are still a very viable marketing channel. wehkamp.nl initially experienced a spike of inquiries from shoppers who wondered how and why the retailer s ads were following them around the Internet. But it was a short-lived reaction as shoppers began to appreciate the personal touch, indicated by higher clicks. Cultivating relevance and personalization wehkamp.nl is among the leaders in using personalization to retargetcustomers. While most organizations use generic and display ads, 79 percent of businesses name personalized as a future priority, and 73 percent cite personalized display ads as a future priority, a study conducted by Bloomberg BusinessWeek Research Services for IBM found. The divide between actual capability and aspirations provides a competitive advantage for marketers who can successfully utilize personalization today. 3

4 We firmly believe that retargeting is a valuable way for improving our marketing communications, said Hoppen. We are open and willing to using every piece of information we have about a customer to improve our communication with the customer to be more personal and more relevant. The IBM Digital Analytics and advertising network analytics solution captures customer behavioral data, such as browsing and shopping history, which is compiled with profile data to deliver optimized recommendations and marketing communications. At wehkamp.nl, online marketers simply reused existing IBM tags and had the solution ready to operate in a matter of hours. Aligning with on-site, targeted recommendations Personalized retargeting for cross-sell and up-sell is also in place at the wehkamp.nl site with the IBM Product Recommendations engine. IBM Product Recommendations retargets wehkamp.nl visitors with recommendations of products that they or people like them have browsed or carted in the past as they visit product detail, shopping cart, thank you, main shopping, and category pages. It s performing very well in adding extra sales. We already saw a significant increase in the numbers, Hoppen said. With some tuning of underperforming main shopping and category pages, he believes IBM Product Recommendations might be able to help wehkamp.nl double the percentage once more. What s more, wehkamp.nl was able to repurpose five full-time employees who ran a custom cross-sell recommendations. Personalized rounds out retargeting Both personalized ad retargeting and product recommendations build on wehkamp.nl s success with personalized to retarget shoppers and cultivate a relevant dialog. With a personalized solution 4

5 on IBM LIV and their service provider, wehkamp.nl has seen a 23 percent higher open rate than standard promotional s, a 68 percent higher click-through rate, a 67 percent lower opt-out rate, and a 271 percent higher sales-per-send ratio. wehkkamp.nl recognizes that retargeting can and should be an essential component in a broader strategy of personalized online marketing and is continuing to balance its display ad and initiatives for optimal performance. With its impressive results, personalized retargeting is clearly a win-win for both retailers and customers. The combination of interconnected technologies is a smarter way for companies to buy, sell and market their products by integrating operations and enhancing interactions through community, collaboration, process and analytics all within an industry context. IBM helps companies swiftly adapt to rising customer demands in today s digitally transformed marketplace. IBM software and services offerings, supported by global sales and marketing resources, address the spectrum of enterprise commerce activities: New ways to buy, sell and secure greater customer loyalty in the era of mobile and social networks. For more information To learn more about IBM Digital Analytics please contact your IBM marketing representative or IBM Business Partner, or visit the following website: ibm.com/software/marketing-solutions 5

6 Copyright IBM Corporation 2012 IBM Corporation Software Group Route 100 Somers, NY U.S.A. Produced in the United States of America July 2012 IBM, the IBM logo and ibm.com are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at Copyright and trademark information at: ibm.com/legal/ copytrade.shtml This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The performance data and client examples cited are presented for illustrative purposes only. Actual performance results may vary depending on specific configurations and operating conditions. THE INFORMATION IN THIS DOCUMENT IS PROVIDED AS IS WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NONINFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided. Please Recycle ZZC03039-USEN-01