How 4Cabling increased revenue by 20% with a simple AI product recommendation feature

Australian D2C brand manufacturer partners with Dotdigital

4Cabling is a leading Australian direct-to-consumer (D2C) manufacturer, wholesaler, and retailer of cabling and electrical accessories. With a solution that offers quality products at the best price to consumers, the brand has since grown to four warehouses scattered around Australia in Brisbane, Sydney, Melbourne, and Perth. 4Cabling engaged with Dotdigital in 2020 at a time when it was focused on uplifting its marketing automation programs and needed a fresh start on a simpler and more intuitive platform.

Recognizing the need to create personalized experiences

With over 89,000 customers in 4Cabling’s database, the challenge was to create engaging campaigns to bring the best value to its contacts. The brand specifically wanted to focus on increasing revenue from its newsletter campaigns and create a personalized and tailored experience for its customers. In order to stand out from the competition, 4Cabling knew the opportunity was ripe with Dotdigital to trial new technology and marketing automation best practices.

Refining newsletter campaign with AI

With a newsletter campaign being a stock-standard staple to any marketing automation program, 4Cabling saw an opportunity to uplift its newsletter. It’s no surprise that a newsletter is typically a very general product and promotional update piece of mass-communication, featuring minimal personalization avenues.

4Cabling implemented the AI-powered ‘best next’ product recommendations feature to serve a personalized recommendation to its customers based on what they’ve previously purchased and their interests. With this additional section in the newsletter, customers can enjoy a tailored experience based on their past shopping behaviors and purchases, ensuring they feel an affinity to the overall brand as their one-stop shop for cabling and accessories.

Revenue recovery using abandoned cart automations

A key way that most businesses leverage marketing automation to recover revenue is with abandoned cart programs. This program allow you to capture the buying intent of a customer in a timely and intentional manner to close the sales loop. Using dynamic content capabilities, 4Cabling personalized the content based on customer segments (loyal, champion, and recent customers) and offered different incentives, ranging from a personalized loyalty coupon codes to discounts for carts that had a value of $500 and above.

Witnessing the value of product recommendations

True to the power of personalization, the added product recommendation supported 4Cabling in achieving a whopping 20% increase in revenue and a massive 53.6% increase in newsletter conversion rate. While the simple setup of an abandoned cart program now contributes to 54% of email revenue, achieving a 5% clickthrough rate, 2.43% conversion rate and 16% click-to-open rate.

After realizing the benefits of a robust marketing program, 4Cabling will be focused on moving to a CXDP product to fully optimize the AI functionality that is available on Dotdigital. The brand have plans to leverage the ’bought together’ product recommendation in its abandoned cart and post-purchase programs. There’s also priority to trial Dotdigital’s ’back in stock/product notification’ functionality in the New Zealand customer base to gauge product interest before launching to wider Australia.

1. Simple personalization tweaks can lead to the biggest changes

4Cabling achieved phenomenal success in its newsletter campaign with just a simple addition of a next best product AI recommendation module. Sometimes to achieve the best results, you don’t have to reinvent the wheel, but rather, tweak it with tailored content.

2. Start with best practices and venture out from there

The success of marketing programs lies in ensuring the foundational programs are set-up and established. 4Cabling filled in the gaps of its marketing automation program with an abandoned cart flow that resulted in phenomenal success. While an abandoned cart flow is a no-brainer, this is something that all marketers should be building in their plan if they haven’t already.