[case of success] Passarela and its ultra-segmented strategy

23/05/18

Scenario

Passarela first started in 1981 as a physical store chain in the countryside of São Paulo, selling mostly shoes. In 2005, it was the first store to sell women’s shoes online in Brazil and from 2010 on it started to offer clothes and accessories, becoming more than a footwear business.

Today it has more than 40 stores in 12 cities in the state of São Paulo, a distribution center of 16,000 square meters and is one of the largest fashion e-commerce operations in Brazil.

The brand offers integrated consumer experience in all sales channels: stores, website and call center. Physical stores have a digital terminal that integrates in store experience with online experience, where salesperson can offer more than 30,000 items to customers, as well as check product availability across all stores. To deliver an even more complete experience, customers who buy their products on the website can also make exchanges in store.

The company was an early adopter of customer lifecycle methodology in Brazil. Four years ago, the company used Responsys to orchestrate its marketing and sales communication and strategies.

Passarela currently has more than 30 active programs on Responsys, which address every point of contact with customers, before, during and after purchases. The email channel is one of its leading sales channels. Email marketing, involving data-based automated emails, accounts for 60% of the channel’s revenue. This shows that the company’s maturity in online strategies, combined with strong technology, are able to deliver a unique experience for customers and generate significant revenue, in an automated way and without any involvement in the operation. This autonomy enables the company to direct its efforts toward developing new strategies and assessing campaigns, to optimize results and experiences.

Problem

Once the Passarela already has automated campaigns that include most of the points of contact with its base, the company has opted to carry out segmented campaigns. In this way, it was possible to identify and activate the campaign called undecided, which contemplates customers who accessed 7 times or more the same product in a period of 30 days and did not buy.

Solution

As these customers were already impacted by navigation and cart abandonment campaigns and still did not finish the purchase of the desired product, Passarela activated the undecided campaign, which consists of a single email with dynamic content.

The main banner may vary depending on three situations: “hurry, it’s running out”, “lower price” and “take advantage of the 5% off coupon”.

a- The first banner appears when the browsed product is when only two are left in stock (e=2) and there are at least four sizes available of the product browsed by the customer.

b- The second banner appears when the browsed product has dropped in price since the last view by the customer.

c- The third banner offers customers a 5% discount coupon and is shown when there has been no price drop in the browsed product and the stock is higher than minimum. It is important to emphasize that if the product could fall under either rule 1 or 2, rule 2 (“lower price”) is prioritized.


The second content is the browsed product that is automatically inserted. The email also has an animated gif, which draws attention since it is different from the brand’s other communications.

Results

The undecided customer campaign yielded surprising results. The CTO of the campaign was 226% higher than the average of other campaigns, opens were 15% higher than the average and revenue has been a success, at 400% over the average.

This campaign illustrates that relationship and customer loyalty are indispensable factors when it comes to consumer experience. The program is only activated after consumers have demonstrated a very high level of engagement and, even though they have been impacted by other campaigns related to the desired product, this campaign achieves these excellent results due to its relevance and assertiveness. It is a real example of the methodology of short messages, for the right person, at the right time.