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I’m Benjamin Ludigs, I’m chief revenue officer for Lamoda. In my role I’m trying to combine the online marketing side, which is our acquisitions, with the stock side and stock analytics. And we do that with a team in the middle, which is our onsite merchandising team who is trying to connect the right product with the right customer.
Lamoda is five years old, we’re actually celebrating our fifth anniversary this March. We are active in four countries, mainly in Russia, and we’re based out of Moscow. We’re selling shoes, clothes, and accessories, and serving currently 20 million, a little bit more, 20 million customers every month. And at any given time we are trying to have 100,000 products online for the customer to buy.
Why is personalization important for Lamoda?
Personalization is key for Lamoda. We think in order to grow further going forward we need to increase our personalization efforts because being in the market for five years we will not suddenly find this new pocket of an audience that we haven’t addressed before. So it’s more about how you address a customer and how to win that trust, and their interest.
Which Dynamic Yield capabilities do you use?
We have done a lot with Dynamic Yield over the past 12 months. We started out with a more generalized approach with external factors that we could start personalization with. For example weather targeting, location targeting. We quickly moved into more detailed targeting, which included affinities.
In a 2nd step we included our own CRM data into the system, so we were able to target based on historical purchases, and include these CRM data in our affinities. So suddenly we were able to target favorite brands of particular customers, not only on the onsite behavior, but also in past behavior.
The biggest step forward we have done in micro moments, using micro moments, is where we try to influence a customer in certain moments of his customer experience, throughout the customer journey on our page; where we try to influence them into a certain behavior that is more beneficial for us than another behavior.
What improvements have you seen?
We are running hundreds of campaigns at any given time, and the uplift could range from a small percentage number, to a high triple digit percentage number in increase. Overall for the business for 2015 we saw an increase of 11 million US dollars, which represented a 26x return on our investment for us.
Why did you choose Dynamic Yield?
We decided to use Dynamic Yield mainly because of three points. We were looking for scale, ease of use, and flexibility. Dynamic Yield has an easy, very easy to use, solution. We are actually only working with one person on our side on that solution, creating hundreds and thousands of campaigns.
Flexibility was important for us because we don’t think one solution fits all problems at hand. There’s not one ready made solution for everything, but we trust Dynamic Yield and the team at Dynamic Yield, to help us sort and solve the problems that we face, and actually develop based on these problems.
Lamoda’s meteoric rise to becoming one of Russia’s most beloved online fashion retailers came on the wings of a simple yet potent idea: allowing each shopper to feel personally understood. Back in 2014, the company introduced a system where online deliveries became personalized shopping experiences in-and-of themselves: Lamoda’s delivery men not only give you 15 minutes to try on your items, but offer fashion advice, take returns, and process your final payment on the spot—no shipping, no fees, no questions asked.
However, Lamoda realized that providing a personalized shopping experience shouldn’t be reserved for offline customer experiences. We know that web personalization can deliver five to eight times the ROI on marketing spend, and can lift sales by 10% or more. Lamoda’s team found itself asking: what if we could give customers the same personalized attention online that they received offline? The results turned out to be staggering.
Lamoda began integrating Dynamic Yield’s personalization software onto its site in January 2015. Fast forward to September and it had already seen an increase of $11 million in revenue and an 8% uplift in Revenue Per Session (RPS) as a direct result.
In a recent article featured on Internet Retailer, Lamoda talks about how personalizing its online shopping experience has become such a critical aspect of its business, and how Dynamic Yield helped it achieve tremendous success.
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Russian e-retailer Lamoda rings up sales with a personal approach
Over the course of a year, Lamoda used Dynamic Yield to create over 160 audience segments, trigger personalized offers based on shopper preferences, personalize category page grids, and more.
Read the full case study:
Lamoda Personalizes Experiences For 20M Monthly Customers