Ormatek: A Four-Fold Increase in Revenue from Trigger Workflows and the Successful Launch of a New Communication Channel
May 29, 2022
Ormatek: A Four-Fold Increase in Revenue from Trigger Workflows and the Successful Launch of a New Communication Channel
The following case study is from Mindbox, the original brand behind Maestra’s technology
Ormatek is one of the most famous Eastern European manufacturers of sleep products. The company holds a strong position in the furniture market and is among the industry leaders in the sector. Ormatek has successfully acquired over 300,000 customers.
Results of Cooperation with Mindbox
Ormatek has been using Mindbox since 2017. In this article, we will take a look at what was achieved during the first year of mutual collaboration:
- We unified online and offline customer databases on a single platform.
- We launched reactivation for our offline audience (via email and SMS).
- We conducted a series of surveys to segment customers for our email campaigns.
- The platform is successfully used for setting up trigger-based and bulk email campaigns.
Client testimonial from a past case, February 2018
“By starting our work with the Mindbox email system, we achieved the following results:
A sophisticated customer relationship management system tailored to our specific goals was successfully established.
A unified platform for marketing communications, covering both offline and online consumers, was implemented.
A set of performance indicators has gone through a positive change: RCR (Repeat Customer Rate), PF (Purchase Frequency), CRR (Customer Retention Rate), CAC (Customer Acquisition Cost), and other indicators.”
In the summer of 2018, a team of marketing analysts from Mindbox joined the project:
- They conducted an audit and optimized existing email campaigns.
- They launched over 10 email mechanics to enhance customer engagement.
- They conducted a series of A/B tests to evaluate the effectiveness of different strategies.
- They activated a new communication channel to reach customers.
All of these efforts were carried out in close collaboration with the Ormatek team.
Results
- The revenue from trigger-based email campaigns increased fourfold (calculated based on the average monthly revenue before and after July).
- The new channel, viber, a popular messenger in eastern europe, started generating additional revenue. the first viber campaign brought a significant boost in sales for the company.
- We gathered a small email subscriber base through two reactivation campaigns: one targeting unsubscribed consumers and the other targeting Viber customers.
Now, let’s dive into the details of how it was accomplished.
Step-By-Step Plan of Work
We organized existing email campaigns
An audit of the existing email campaigns is especially beneficial for projects with a long history of launches, multiple flows involved, or staff turnover.
During the audit, we found answers to important questions:
- Which campaigns are truly effective and generating revenue?
- Are customers receiving emails at every stage of their life cycle?
- Are there any overlaps in the conditions of the campaigns?
The audit revealed gaps in the strategy and allowed us to identify and rectify minor errors in triggers while disabling non-performing flows. This provided a foundation for proposing and launching new mechanics that seamlessly fit into the overall strategy.
We Launched over 10 Email Flows:
Based on data analysis and business insights, we developed and implemented more than 10 new email flows targeting different customer segments.
For customers who have made a purchase:
- Post-purchase recommendation chain.
- Service quality assessment after an offline purchase.
For active website visitors:
- Notification of discounts on selected items.
- Abandoned product reminders (separately for mattresses and other products).
- Abandoned category reminders (excluding mattresses).
- Daily deal emails.
For churn:
- “Best Sellers” digest.
- Flow for those who browse but don’t make a purchase.
Here are three unique mechanics introduced by Ormatek.
The Mechanics of Upgrading to a More Expensive Mattress after Placing an Order
When the order is completed, the customer receives an email with the purchase details and a special offer. Within a limited period, the customer can receive a premium pillow as a gift by upgrading the mattress in their order to a higher-priced one. This will increase the total order value while providing the customer with the opportunity to purchase a better mattress and an orthopedic pillow for a small additional fee.
Here are the performance metrics for the email campaign over a 1-month period:
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75,5%Open rate, %
-
24,8%Click rate, %
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1,2%Conversion to order, % (Last Click Attribution)
-
75,8%Open rate, %
-
9,5%Click rate, %
-
1,2%Conversion to order, % (Last Click Attribution)
-
32%Open rate, %
-
6,4%Click rate, %
-
0,2%Conversion to order, % (Last Click Attribution)
Requesting Feedback and Collecting Email Addresses after Purchase
After completing a purchase, the customer receives an SMS invitation to leave a review on the website. The review page is unique to each user, where the customer can rate the company’s service quality and provide comments. After submitting the review, a form appears prompting the customer to subscribe.
The customer receives a $7 discount promo code as a gift.
- If the customer is already in the database and their email is confirmed, they will receive an email with the promo code immediately after publishing their review.
- If the email has not been confirmed, they first receive an email for confirmation, followed by the promo code. This way, additional email addresses are collected.
At the time of writing this article, the email campaign performance indicators are as follows:
-
75,5%Open rate, %
-
24,8%Click rate, %
-
1,2%Conversion to order, % (Last Click Attribution)
-
75,8%Open rate, %
-
9,5%Click rate, %
-
1,2%Conversion to order, % (Last Click Attribution)
-
32%Open rate, %
-
6,4%Click rate, %
-
0,2%Conversion to order, % (Last Click Attribution)
Offering Installment Plans for Expensive Purchases
If a customer has viewed a high-value item such as a sofa, mattress, or any other product priced above $347, we send them a compelling installment plan offer — Pay Later campaign. The terms and conditions of the installment plan are automatically calculated when creating the email.
-
75,5%Open rate, %
-
24,8%Click rate, %
-
1,2%Conversion to order, % (Last Click Attribution)
-
75,8%Open rate, %
-
9,5%Click rate, %
-
1,2%Conversion to order, % (Last Click Attribution)
-
32%Open rate, %
-
6,4%Click rate, %
-
0,2%Conversion to order, % (Last Click Attribution)
Despite the low conversion rate into orders, the mechanics still generate significant revenue due to the high average order value. After all, the flows are aimed at expensive products.
We Conducted a Series of A/B Tests
Continuous marketing development is crucial for revenue growth. This means not only launching new campaigns but also improving existing ones.
Ormatek conducted a series of A/B tests and improved the performance of their email campaigns.
For instance, we tested the subjects for the “Top Sales” email. Option B won.
Option A: “Want to know what our customers are really buying?”
Option B: “Our best-selling products, specially selected for you”
For the “Abandoned Product View (Mattresses)” flow, option A emerged as the winner in the A/B test for the subject.
Option A: “You’re going to love this!”
Option B: “Jake, did you find what you were looking for?”
As a result, Ormatek currently operates over 25 trigger scenarios and runs approximately three A/B tests simultaneously. The revenue from trigger email campaigns has increased by more than 4 times, as calculated based on the average monthly revenue before and after July.
Revenue from trigger email campaigns
We have connected a new channel — Viber, a popular messenger in Eastern Europe. The very first email campaign, “Big Sale” in August, brought a significant increase in sales.
The plans for channel development include the launch of trigger campaigns through Viber and A/B testing of messages.
We conducted a reactivation campaign to gather email subscriptions.
Collecting Email Addresses from the Messenger
Reactivating customers through Viber is more challenging compared to reactivation through email.
Customers without an email address but with a phone number went through several stages:
- They received a Viber message with a gift offer for registering in the Club.
- They were redirected to a special landing page with an email field to be filled out.
- They received an email with a gift — a promo code for $40.
Full text of the message: “George, we invite you to join the ORMATEK Benefit Club! Every new club member will receive a $40 gift towards the purchase of sleep goods! The terms and conditions for receiving the gift are specified on the club members’ registration page.”
Ormatek managed to collect 0.8% of emails from delivered messages.
Results and Next Steps
Over the course of three months of dedicated work on the CRM strategy development, the collaborative efforts of Ormatek’s marketers and Mindbox’s marketing analysts have yielded significant achievements:
- The revenue of trigger emails increased 4 times due to the launch of new campaigns and A/B tests.
- A new channel, Viber, was launched and tested. So far, it is used for regular bulk mailings.
- We collected a small database of email subscribers through the reactivation campaign.
The company has no plans to stop CRM development. The next steps include:
- Launch of new campaigns and A/B tests via the email channel.
- Launch of triggers via the Viber channel.
- The launch of web-push notifications and the introduction of trigger mechanics for them.
- Implementing a feature to notify Ormatek’s managers about the current interests of the customers assigned to them.
- Development of a loyalty program and creation of a unified CRM together with Mindbox. Integrating online and offline data to enable store managers to manage customer communications directly from their workplace. This includes sending campaigns and managing bonus points.
“Over the past year working with Mindbox, we have achieved remarkable results and taken our project to new heights of development.
We have enhanced our recommendation mechanisms, implemented innovative triggers, conducted A/B tests, launched Viber notifications, push notifications, and much more.
These efforts have not only led to increased conversions but have also generated a great amount of valuable data. Together with Mindbox’s analysts, we have examined this data and identified patterns that have helped us redefine our approach to communicating with our customers.
Together with Mindbox, we launched a loyalty program that integrates seamlessly with our CRM system. While there are still details to refine at this stage, we can already anticipate exciting new phases of growth in our partnership with Mindbox.
Over the course of our two-year collaboration, the teams at Ormatek and Mindbox have demonstrated exceptional efficiency in the realm of communicative marketing.
The employees at Mindbox embrace our ideas and goals, enabling us to achieve our desired outcomes promptly and with exceptional quality. With their high level of engagement, Mindbox provides us not just with a set of tools, but a comprehensive communication channel that empowers the overall development of our project.”
