revenue generated by RFM
increase in conversion rates
Caruso’s Natural Health wanted to enhance its customer engagement process and build a stronger ecommerce strategy. With this in mind, Caruso’s Natural Health carried on an experiment in November last year by integrating Dotdigital’s automation and analytics tools into its 2019 Singles’ Day campaign. The team, learning from past campaigns, aimed to build more effective and stronger marketing campaigns this year. The Singles’ Day campaign was a huge risk for Caruso’s Natural Health, as a vitamin company taking part in holiday promotions was not a regular occurrence. Therefore, the brand teamed up with Dotdigital to better understand the wider response and prepare for future promotions.
Caruso’s Singles’ Day campaign focused on an omnichannel strategy, customer engagement, and digital support. The key differences became evident once Dotdigital implemented its latest recency, frequency, and monetary (RFM) value model and dashboards.
Diana Uribe, Digital Specialist at Caruso’s Natural Health said, “We wanted to use Dotdigital to understand how to better communicate with our customers in a conceptual and personal manner. The RFM personas have enabled us to refine our customer database and build improved segments while delivering tailored campaigns for existing and new customers alike.”
Established in June 1982, Caruso’s Natural Health is a 100% Australian-owned family company supplying complementary medicines (vitamin, mineral, and herbal supplements) to more than 3,000 pharmacies and health food stores throughout Australia. Caruso’s range contains close to 125 quality vitamin, mineral, and herbal products. Caruso’s team constantly looks at ways to develop new quality products and lifestyle programs that help promote good health for all Australians.
With Dotdigital, technology is one of the greatest benefits and the platform is constantly improving to enhance their user’s experience”
Caruso’s Natural Health saw a 71.91% increase in conversion rates from the RFM segmented audiences. This accounted for 25% of the total revenue generated from the email campaigns, resulting in an exceptional Return on Advertising Spend (ROAS) within a limited period. For every $1 spent the return was $39, with 95% of these conversions attributed to Dotdigital, a result never achieved in the past.
The RFM segments were based on the personas and tailored the pre-launch campaigns to loyal customers. The Singles’ Day campaign persona movement from 10 November until 12 November, 2019, saw the ‘inactive’ segment decrease by 5.78%; a 33.7% increase in the ‘loyal’ segment; a 31.12% increase in the ‘recent’ segment; and a 11.54% increase in the ‘high potential’ segment.
Commenting on the campaign, Uribe said, “We are firm believers of the 80/20 principle where you should focus a lot of love and attention to your loyal customers. This is exactly what we tried to adopt in this campaign. We’ll continue to focus on more tailored content aimed at loyal customers, with a special emphasis on other ecommerce and re-engagement programs.”
Uribe states, “The Dotdigital support team has been exceptional by supporting Caruso’s with technical and strategic advice regularly. They are such a valuable asset to the digital team at Caruso’s. With Dotdigital, technology is one of the greatest benefits and the platform is constantly improving to enhance their user’s experience.”
As email marketing has been a strong driver of revenue, Caruso’s Natural Health is looking forward to exploring other domains with Dotdigital. “We’re very excited about what we can do with Dotdigital potentially and I believe we have a very competitive business strategy. Last year was about experimenting and testing, but this year we are looking forward to executing our new ideas and I think Dotdigital will take us where we need to go,” said Uribe.