home&you is a brand for anyone who wants to take care of the interior of their home in a beautiful and fashionable way. The company offers a wide range of home textiles and interior decoration items. The brand distinguishes itself on the market with its high quality and carefully refined design of each product. The brand home&you is owned by LPP TEX SA - Poland’s leading importer and distributor of home furnishings with more than 14 years of experience. The brand has over 90 stores located in 50 cities.
Beginning of Cooperation
Divante and home&you have decided to start a partnership based on the success fee model (payment for results) in the area of wide-ranging e-marketing activities. The official online store of the brand home&you – www.home-you.com, was launched in November 2012.
Launching online sales gave existing customers the possibility of easy and quick access to the store’s offer, without having to leave their own home. Divante supported the sales promotion of products available through the official online store.
The key areas of cooperation included:
- Service-oriented marketing channels for sales
- Initiating and planning additional promotional activities on the Web
- Ongoing recommendations of improvements of the online store
- Support for web analytics
Works on increasing sales have been gradually implemented in close cooperation with the Divante E-Commerce Performance Department and the home&you E-Commerce Department.
One of the first things that has been implemented, was the optimization of analytics on Google Analytics, which allowed to measure conversions and micro conversions of the online store. Simultaneously, we analyzed the trends, seasonality and motivators in order to get customers closer toward making a purchase.
The collected data was used to select the tools and methods in e-marketing. E-marketing actions were coordinated with a year-round promotion plan for home&you retail stores.
The adopted strategy involved in a double track approach. On the one hand, a series of marketing tests were planned and carried out. The aim of these tests was to detect the most profitable marketing activities, which will be able to continually help generate sales and attract new customers.
A variety of media have been tested, such as portals and affiliate networks, price comparison websites, Google AdWords (sponsored links and Ads display, including remarketing in various motifs and timing combinations), RTB advertising networks, e-mail marketing to external databases, website discounts, or group purchases. The sales campaign has also been integrated with such elements like competitions conducted by the home&you retail chain, or advertising in printed magazines.
On the other hand, several implemented key e-marketing actions were planned and prepared by home&you marketing specialists, which have adopted the function of a driving sales engine as a whole for home&you stores.
The key to success was to develop scenarios for each of the special actions and a well coordinated operation of each marketing element, online as well as offline.
One example of such actions was a special sales promotion „You’re buying – You’re gaining” („Kupujesz – Zyskujesz”), which has been implemented at the turn of August and September 2013. The concept of this action was to attach coupons to customer purchases which can be redeemed on subsequent purchases. This promotion functioned both online as well as at brick-and-mortar stores.
During the campaign a mechanism has been used to build tension in advertising messages – it gradually emphasized the passing time with the approaching end of the promotion.
The promotion attracted great interest, as accumulation of sales effects were clearly noticeable in the last three weeks of its duration.
During the six months of cooperation other e-marketing actions were also carried out, such as: „A Weekend of Good News”, „The Night Hunt”, „The sooner, the cheaper”, „50% off the Second Product”, „Mid Season Sale” „10zł for the Second Product „A guaranteed parcel for orders before December 15th”, „Day of Free Shipping”, „Pre-Christmas Sale”or „Winter Sale”.
One of the positive results of a good and carefully planned campaign was the Christmas promotion which has been carried out in November and December 2013. Apart from generating sales, the target was to shift sales from December to November, which allowed to pursue sales of christmas stock efficiently and in advance. This actions also eased the pressure on the ordering logistics, which normally was carried out by customers during the December shopping fever.
The Effects of Cooperation
Marketing efforts and close cooperation between Divante and home&you have led to a significant increase in online sales at home&you. Extensive tests conducted in the third quarter of 2013 enabled to detect the most effective e-marketing activities. This knowledge has been successfully implemented in the home&garden branch during the key period of Christmas.
During the first months, the revenue generated from the online store increased by an average of 36% (month by month). Special promotion actions were progressing smoothly with adequate continuity.
The best special promotion actions implemented in the framework of cooperation has led, among others, to an increase in conversion rate of 368% compared to the average for the same period. The most effective promotion actions of a crossselling resulted in an increase in the average basket value of 111% compared to the average of the same period.
After only 1.5 years of the online store home&you operating, we have to admit that the decision on its launch was a very good one. All sales figures indicate a high potential of this channel and most importantly, without compromising the sales at the physical retail stores. The success of the whole project is also the result of our cooperation with Divante. We created an effective plan of actions and the diverse and unconventional solutions proposed by Divante have proven to work in practice. Thanks to the synergy of adapted tools, success has been achieved.
Cooperation in the model of payment for results, made it possible to freely conduct marketing tests by Divante and minimized the risk of investment for home&you.
Currently, both companies continue to successfully develop their cooperation in order to increase sales of the home&you brand.