Adore Me uses AI to gain more lingerie customers online.
The four-year old e-commerce brand secured a big market share of Victoria’s Secret through targeting their customers online through artificial intelligence. Before they strengthened this technology they used the common “spray and pray” method of messaging customers through email marketing, which was not very effective.
“We had a one-size-fits-all strategy for reaching out to customers,” said Josselin Petit-Hoang, who is Adore Me’s marketing manager since 2014. “But as the company grew, and the volume of our customers grew, we wanted to narrow down, as well as reach people outside of email.”
Adore me has raised almost $12 million in venture capital since its beginnings — and did an amazing job by scaling its business to $80 million in sales in 2016 and is projected to hit $100 million in 2017, according to internal figures.
Adore Me is also running a VIP mempership model to attrackt more customers. VIPs get lower prices, free shipping & returns, and other perks and gifts. Members have only to check in once a month to either make or skip a purchase – a part of the small print that has blindsided some customers in the past. Otherwise, a $34.95 charge is credited to their account.
Customers don’t need to be VIP members to shop Adore Me. The company had divided its messaging groups into four: members who had recently made a purchase, non-members who were active shoppers, VIP members who hadn’t recently made a purchase and inactive previous customers. But soon they found out that four would not be enough and started to divide them in even narrower parts – in 60+ segments. Thorugh data mining they expanded and personalized their customer information and messaging process, moving outside of email to text notifications, in-app messages and Facebook ads. They could now target the exact customer directly and much more personalized through this strategy and observing the behavior of the customer segments even better.
As a result, Adore Me’s monthly revenue grew by 15 percent just from its data-driven campaigns, and a 22-percent increase in average order amount. Its yearly active customers doubled.