November 1, 2018
How Libero’s Personalized Communications Strategy Supports Customer Brand Loyalty Through the Years
The following case study is from Mindbox, the original brand behind Maestra’s technology
It can be difficult to be an FMCG (fast-moving consumer goods) marketer because it isn’t always possible to measure the effect of your marketing efforts in sales and profits.
One of Mindbox’s clients, an FMCG company, asked us to carry out some market research, in which we had to estimate how personalized communications influence brand loyalty. It turns out that regular communications increase brand satisfaction by 28% and product usage by 10%.
Mindbox’s internal research for another FMCG company has shown an average order value (AOV) growth of 31% and marginal growth of 10% for loyalty program members and recipients of brand’s regular communications. We have assumed the research results are also valid for other FMCG companies: in order to grow customer loyalty, you need to remind them of yourself consistently and often. We developed Libero’s communications strategy with this in mind.
Libero is a baby products brand: diapers, wet wipes, creams and other things that make parents’ lives easier. All of these are FMCG goods.
In April 2017, Libero team launched the libero.promo landing page. Libero wanted to attract potential diaper buyers to the landing page to tell them about diaper advantages and motivate sales via promotions on the website and through regular multichannel communications. Accumulating a customer base is quite important because diaper distribution is a highly competitive market.
customer data collection and storage
development of an omnichannel communications strategy
an easy way to communicate with customers and inform them about promotions
communications that customers will find useful
refining and improving communications using A/B tests
transparent reporting system
In order to maintain loyalty, Mindbox marketing analysts alongside the Libero team chose two key directions for the communications strategy:
Keeping in touch with customers
Communication with customers consists of informational, educational and entertaining content.
Helping parents switch to purchasing a new type of diaper, suitable for their child’s age
When the child’s age reaches the point when it’s time to switch to the next size diaper, the system sends an automated email or a web push notification with a link to a landing page where customers can request a promo code for the new diapers.
Libero use triggered and bulk emails, web push notifications and transactional SMS messages.
To measure the email effectiveness, we monitor how many customers in the dabase got the email, opened it and clicked on a link inside it.
The aim of this strategy is to establish regular communications without annoying customers. This allows us to communicate with the entire customer base, but not too often, ensuring their interest does not fade. We determine their interest using the open and click rates.
We managed to increase our database coverage and subscribers’ interest with improvements via A/B tests and the launch of automated communication flows at the end of January.As of July 2018:
99% of customers get emails every month
32% of customers open emails
10% of customers click the link within
To assess the effectiveness of communications in which we suggest parents size up their babies’ diaper size, we measure the share of customers who received these communications and then requested a promo code. This is how we can find out how many customers we managed to switch to the next type of diaper.
Alongside the Libero team, we are constantly improving the communications sequence for these types of reminders and recommendations for parents.
For example, in July, content personalization, simplifying communications and increasing the number of stores where you can get diapers with a discount using the promo code gave the following results:
8.4% of customers switched from the Libero NewBorn line to the Libero Comfort line, compared with 3.1% in February
6% of customers switched from the Libero Comfort line to the Libero UP&GO line, compared with 3% in February.
We reached out to Mindbox in April-May 2017, with the goal of accumulating and storing data about the visitors of our new libero.promo project. We needed to adjust the way we sent out emails and develop a cosistent communication strategy for subscribers. We expected Mindbox to provide a high level of service, a convenient report format, suggestions on how to optimize data presentation, a high level of accounting, expertise and an interest in our product.
This is all exactly what we got. As a result of our collaboration, we now have loyal subscribers and high email response rates.
We are delighted that we chose Mindbox. We think that our project is doing as well as it is thanks to great teamwork, high-quality analytics and the use of new technological solutions.
Mindbox’s system receives client data from the libero.promo landing page. To personalize communications, we collect data about the stage of the pregnancy or the baby’s age. We need this data so that the platform can determine a mother’s position in the communication sequence.
We divide parents into three groups according to the type of diapers used for their babies:
Libero NewBorn (diapers for newborns);
Libero Comfort (diapers for 3-4-month-old babies);
Libero UP&GO (diapers for babies older than 4 months)
All Libero communications based on Mindbox’s strategy consider the baby’s age. It determines the type of diapers that we offer and the content in emails and web push notifications.
We use three general principles in our strategy:
an omnichannel approach
different types of content
improvements through A/B tests.
We allow each subscriber to choose a convenient communication channel
For communications with subscribers we use 3 channels:
Bulk and automated emails
Web push notifications
Transactional SMS messages
Customers can choose the convenient communication channel for them: email, web push notifications or both. We measure results for these channels: we monitor how many parents responded to the CTA and followed the link to get a promo code for a new type of diaper. The SMS channel is used only for sending promo codes.
We also combine channels. For example: we’ve created a cascading web push notification and email communication flow where we inform parents that it is time to switch their babies to a new type of diaper. The sequence includes several emails and a web push notification, which remind parents to pay attention to a new type of diaper during a certain period.
Results of the communications workflow in July, where we inform parents that it is time to switch their babies to a new type of diaper
Conversion rate of customers who switched from “Newborn” to “Comfort”
Conversion rate of customers who switched from “Comfort” to “Up&Go”
If customers are subscribed to only one of the channels, we have other workflows set up for on them. This system allows us to communicate with the largest possible number of people from the database.
We send personalized content without annoying readers
All communications take into account the baby’s age. That is, each parent receives unique messages regarding their child. Pregnant women receive messages about preparing for childbirth, parents with newborn babies receive useful tips on how to teach their baby to walk or talk.
In total, we send out content in three main categories: info on products, reminders/suggestions that it’s time to go a size up on diapers, and entertaining content.
Product content is mostly bulk emails about discounts and Libero promotions in partner stores. We duplicate information about promotions via web push notifications.
Messages on moving up to the next diaper size and entertaining content are automated. In total, the project has been configured to send 27 automated email and web push notifications, corresponding to the child’s age.
To maintain interest in the brand’s emails, we alternate the content.
Improving communications with A/B tests
Since we already have regular communications with customers and a streamlined triggered workflow, we are now investing our time in improving and personalizing content.
E.g.: here, we wanted to test which topic was more interesting.
Email subject line A/B test: more “emotional” vs. with an emphasis on providing value. Results for the UP &GO segment with parents of 17-month-old babies. The more “emotional” option wins
Email subject line A/B test after the birth of the baby: congratulating parents or with an emphasis on providing value. Results for the Newborn segment with parents of 1-month-old babies. The “happy birthday” option wins
We also test which version of the email copy is more interesting for readers. For example, we sent out two emails, one of which listed a description of product benefits, and the other with useful tips for communicating with their baby. The email with a description of product benefits won and had a greater click rate.
Testing is important because it helps us refine our communications stategy and make content more personalized. Every small improvement affects our metrics and strategy as a whole.
Personal communications boost customer loyalty and influence sales
To increase loyalty, Libero marketers have chosen direct communications with customers and are constantly experimenting with how to improve it.
accumulate all customer data in one place
communicate with customers via email, web push notifications and SMS messages
use and test different and useful content
have reports on all communications.
Thanks to personalized communications, by July 2018 the brand has:
increased the share of customers who receive monthly emails to 99%
achieved a great email open rate of 32% on average
a 10% email CTR throughout the entire customer base.
Other important elements of Libero’s communications are emails and web push notifications that remind parents to switch to new sized diapers. They help parents find out why this is important and offer a promo code for the purchase of new diapers.
From February to July 2018, the number of customers who switched from Libero NewBorn to the Libero Comfort line increased from 3.0% to 8.4%, and the number of customers who switched from the Libero Comfort line to the UP &GO line increased from 3.1% to 6%.