Customer success story

How Zalora Improved Customer Lifetime Value with Personalization

Industry: Fashion Retail (eCommerce)

Location: South East Asia

Goals: Improve Customer Lifetime Value

Type: B2C

Zalora is one of Asia’s leading online fashion, beauty and lifestyle brands, part of Global Fashion Group. Zalora has a strong presence in South East Asia, particularly in Singapore, Indonesia, Malaysia, Brunei, the Philippines, Hong Kong, and Taiwan, and serves over 50 million customers monthly.

Reducing User Drop-Offs on the Product Page and Checkout pages

For any eCommerce brand, user drop-off is a red flag. Cart abandonment and user drop-off remain a significant challenge for most major online retailers, and Zalora has also had a fair share of these drop-offs.

The eCommerce team at Zalora wanted to understand what is causing these drop-offs and create campaigns that would pave the way for consistent customer engagement to discourage cart abandonment and user drop-offs. Thus the team had two primary objectives:

Reach out to its users who drop off from their product & checkout pages to improve revenue and increase the customer lifetime value.

Re-engage inactive users with personalized alerts based on a user’s purchase and browsing history.

Zalora and Vizury

Zalora partnered with Vizury to run a targeted push notification campaign on the web and mobile during their End of Season Sale event to drive customers back to their online store and mobile store. Zalora used Vizury’s dynamic feed-based push notifications to send:

Personalized 1:1 notifications

Triggered notifications based on customer’s activities

Cart recovery and drop-off recovery notifications with dynamic time intervals

Price drop and back-in-stock alerts based on user activity such as viewed products and pages visited.

2.5X Improvement in Conversions and 2X Improvement in Customer Engagement

With Vizury’s implementation, Zalora’s team was able to improve conversion rates by 2.5 times. And the new performance of dynamic push notifications for web and mobile app improved click-through rates by 2.5x.

Vizury’s campaign was implemented at Zalora’s customer lifecycle:

Activate

To engage users who recently installed the Zalora App or visited their website and encouraged them to sign up.

Convert

To encourage users who have added products to their wishlist or cart to checkout.

Recommend

To engage users by cross-selling and up-selling products based on their interests, browsing activity, and previous purchases.

Retain

To encourage users to shop again by sending promotional and various offers via push notifications.

With such a combination, Zalora was able to a 20-times uplift compared to Zalora’s older implementation of push notifications.

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