Customer segmentation: how CARE got a 97% increased ARPU
In a world where people are increasingly concerned about the impact of chemicals and synthetic ingredients on their health and the environment, the demand for natural and organic beauty products is rising. That's where CARE Natural Beauty comes in.
Founded with the mission of offering toxin-free "clean beauty", attractive and high-performance beauty products, CARE Natural Beauty's purpose is to bring beauty and health to the skin and take good care of the planet. CARE Natural Beauty products are made with carefully selected high-performance natural and organic actives, free of toxins and substances harmful to health, to guarantee a more ethical and healthy alternative.
Continue reading to learn more about CARE's challenge of creating an assertive communication on their website, and how they leveraged customer segmentation to create personalized experiences.
Learn the step-by-step for funnel stage-based website communication with our playbook.
The challenge
One thing that sets CARE Natural Beauty apart from other natural beauty brands is its commitment to ethical and sustainable practices. They believe in using only the best eco-friendly ingredients and packaging and minimizing their environmental footprint by offering refills.
Being one of their main brand differentiators, they usually emphasize this in their customer target campaigns through emails and other marketing channels. Besides the refills, they typically communicate other customer-only programs, such as the subscription and the member-get-member program.
They know the customer journey is very different from the lead's journey. Customer segmentation on emails and social media campaigns are a standard practice. But what about targeting the user experience and fostering customer segmentation to differentiate them from other users on the website?
Segmenting customers from leads
Customers have different needs and knowledge about the brand, so it's natural to think about different communication strategies for each group.
Using Croct, the marketing team created multiple audiences of website users who fit the customer criteria to increase subscriptions and refill sales. They built different customer segmentation rules based on purchase history and the campaigns that led them to the website.
Croct allows you to create audiences based on purchase history, campaign engagement, browsing behavior, location, and more. To learn more about the customer segmentation feature for e-commerce, check our website.
With the audience in their hands, they could target the home banner and the announcement bar communication.
The announcement bar was dedicated to showing the subscription program, while the home banner carousel included different offers available to these users.
While this might seem a simple change, having a website tailored to each user's context reduces friction and distractions in their browsing experience. This helps you create a more seamless user flow, reducing the number of funnel stages leading up to repurchase.
Achieved results
Croct allows marketing teams to conduct segmented AB tests to validate hypotheses for personalization strategies. The e-commerce team segmented customers and then split them into two groups:
- Customers in the control group viewed the default version of the announcement bar and the banner carousel
- Customers in the personalized variant viewed only tailored offers.
The personalized version showed a 34.5% increase in conversion rate and a 97% increase in the average revenue per user (ARPU), a key metric for e-commerce.
With this test, we could see the real impact of using customer segmentation. It allowed us to make data-driven decisions in directing our efforts to create more tests to find new opportunities like this one. Croct enabled us to delight our customers by delivering an increasingly personalized experience, significantly eased our testing and analysis routine, and let us go further than we've ever imagined.
Check out our interactive demo for e-commerce and understand how Croct can help you boost your revenue strategy.
What we can learn from this case
As the beauty industry heats up, recognizing that each customer deserves relevant communications based on their journey is key to leveraging competitive advantages. Leveraging customer segmantations to tailor offers and programs allows you to reap massive benefits, such as increased conversion rates and higher revenue per user.
In addition to its commitment to sustainability, CARE Natural Beauty also strongly emphasizes education and empowering customers to make informed choices about the products they use. But today, this is not enough, and you need to go further.
Personalization can be your greatest ally if you have an e-commerce business and face the challenge of standing out from the competition. So if you want to achieve great results too, create your free account and start using customer segmentation today.