In-depth customer knowledge and marketing automation turns Ströh from e-commerce vertical to customer loyalty-centricity
Ströh e-commerce is a market-leading family business in the segments of high-quality horse feed, horse care products and horse accessories. Since implementing Custobar in 2018, shopping carts of existing customers increased by 32% – all while revenue roughly doubles from 2017 to 2020.
- Founded in 1897, e-commerce in 2011.
- Turnover 2020: 7 M€ (e-commerce only)
- Store + Warehouse
We spend too much budget on Google. Re-purchasing rates could be better as well as shopping carts. Our goal is to make three times more revenue with existing customers than with new customers. Plus, we want to meet our customers’ demands on an individual level.
Ströh and Custobar deeply discussed these challenges, transforming their staff’s know-how into an effective marketing strategy with the help of Custobar’s automations and practical audience-segmentation. The results are outstanding!
Ströh not only managed to increase re-purchasing rates significantly but at the same time also boosted average shopping carts of existing customers.
Ströh’s marketing strategy came from insights based on their data. It is the existing customers who can tell you more about your customers and lead to potential sales. With a customer data platform like Custobar, you know the customer’s purchase history and in the best case, also the behaviour in the shop and on the website.
Key questions for decision-making were:
- What do customers buy directly?
- What are customers looking at?
- What do customers look at more often before they buy it?
- Which products might require extensive advice?
- Which customer segments need more attention or incentives?
- Which customers can be identified as being likely to buy a subscription?
- What do customers think about the Ströh organization?
- Which customers should be excluded from retargeting in Google Ads?
Challenge - where should we start?
Ströh was looking for a versatile solution to combine all their customer data. They wanted to create meaningful customer journeys instead of mass newsletters. Besides, they wanted to personalize parts of the website, receive valuable customer feedbacks as well as send lookalike audiences to Google.
- Build a marketing automation roadmap
- Deliver relevant content to customers
- Personalize the customer journey
- Gain more insights on customers and how to approach them better
Solution - A customer data platform with marketing automation
- Combining customer data from all touchpoints of the customer journey and gaining insights on customer behaviour.
- Making better use of customers’ data and adding specific data, such as CAC, retention cost, received rebates and NPS.
- Adding horse-information, e.g. feeding habits, also making this data actionable.
- Imagining and creating a variety of customer journey, to date being displayed by more than 300 marketing automations (while general newsletters are segmented as well).
- Making use of the RFM Matrix for in particular retention purposes, for example, moving them from passive to active customers.
- Utilizing Custobar’s add-on modules for NPS scoring and Google lookalike audiences.
Results: 27% higher shopping carts and a 32% increase better revenue-ratio from existing customers
- 27% higher shopping carts from existing customers
- 32% increase in revenue ration existing- / new customers
- The ultimate target of a 3:1 ratio (revenue existing- vs new customers) is almost reached
- Decrease of marketing budget by ~5% compared to 2019 alone – while being on track to grow revenues by 30+% YoY
- Increased NPS results by 8 points YoY
Ströh is a prime example of what is achievable through the right tools, mindset and analytics skills. Together with Custobar partner Fluid Data Ströh succeeds strategically and operationally extreme well. Great job!!!