One company implemented a website personalization mechanic based on user behavior prediction. The system predicts whether a user will make a purchase after adding an item to the cart or leave the site. These predictions help determine the most appropriate moment to encourage the customer to buy by showing a pop-up in the cart. As a result, ARPU increased by more than 30%.
Determining the level of efficiency
Source: shutterstock.com
Benetton placed personalized recommendations on the homepage of its online store, offering related and similar products on the product page, and also reminding users of abandoned carts via email. The increase in ARPU indicated that the company's strategy was successful.
Assessing customer reactions in the venezuela email list process of testing price marketing hypotheses
Let's consider the same online store of tourist goods that decided to test the price marketing hypothesis by increasing the price of its most popular product - trekking shoes.
September October
Cost of spinning rod 3500 ₽ 4000 ₽
Number of customers who viewed or purchased the product 30 25
Income per month 70,000 ₽ 64,000 ₽
ARPU 2333 ₽
(70 000 ₽ : 30) 2560 ₽
(64 000 ₽ : 25)
Although the revenue from shoe sales decreased, ARPU increased. This indicates that the decrease in revenue is not due to a change in the price of the product. Therefore, the company can continue to attract new customers without changing the price of the product.
Segmentation of the customer base
Segmenting customers based on ARPU allows you to compare revenue from different customer groups, such as new and regular, high and low checks. Using this information, a company can segment its audience, create personalized promotions and optimize communications.
Segmentation of the customer base
Source: shutterstock.com
For example, specialists at Rigla create personalized promotions and do not spend money on providing discounts to customers who already buy products. One example of a promotion is offering a 20% discount on La Roche products only to customers who have previously purchased skin care cosmetics.
Recommended articles on this topic:
32 methods of finding and attracting clients
Cross-marketing: 5 examples and 8 mistakes
B2B Marketing: Key Features, Promotion Channels.