Zoomalia increases revenue from active customers with AI

Zoomalia, Europe’s leading pet e-commerce store, has focused on growth and built all e-commerce and logistics components within the company. Despite a decade of steady growth, the development team couldn’t keep up with the marketing demands of new software, and marketers relied on the development team to make the necessary changes for each campaign. Also, they didn’t know what worked well, what attracted customers, and what drove the customer to convert.

Zumalia

Half of Zoomalia’s business is recurring purchases, making renewal strategy a priority. The ambitious development team knew they had an issue with scaling and wanted to increase customization to prevent customers from running out of their dogs food by reminding them on an individual level when they need to reorder.

the solution

Repeat purchases represent 50% of Zoomalia’s business, so focusing on an alternative use case has been strategic in sustaining the company’s growth. Replenishment time was critical because the marketing team knew that if a customer ran out of food, they would go to the store to make the purchase instead of ordering online.

Replenishment was necessary to prevent customers from running out of feed. However, finding the right time to communicate and estimating when a customer would need to replenish their quota at a 1:1 level for millions of customers was next to impossible. Thanks to the AI-based regeneration algorithms from SAP Emarsys, the regeneration time and quantity of products and auxiliary materials are calculated automatically.

With the calculation made by the SAP Emarsys platform, Zoomalia needed to automate the campaign and produce fast results. The team started with the off-the-shelf renewal tactic by initially focusing on two email reminders to drive the reordering process. Each reminder included additional products based on a customer’s previous purchases and browsing behaviors to generate cross-selling opportunities.

AI has been a key factor in scaling each alternative use case for each customer’s unique purchase frequency and product affinity. Cindy Torrinha, Director of Digital Marketing at Zoomalia, shares: “The great thing about SAP Emarsys is that you can also enter a user profile and see who they are, their frequency of purchase and their preferences. We are in the sentimental and pet industry, so getting to know customers is key to earning their trust, it’s something they value.”

consequences

After a year with SAP Emarsys, Zoomalia has fully automated and customized the customer journey. They’ve seen significant results after launching their new AI-powered alternative campaigns.

Comparing annual performance since the adoption of AI and the launch of the SAP Emarsys Key Replacement Program, Zoomalia has seen a 75% increase in active clients, a 94% increase in revenue for active clients, and a 68% increase in revenue from passive clients.

“We had to turn to AI, and when we explored our options, we were fortunate to see our chosen CRM and automation vendor, SAP Emarsys, also had this type of solution on their platform. So we worked with them, and instead of spending months developing this tool in-house. We were able to launch such a program in two months. We have more software coming soon, but that was our main use case. There was nothing our development team had to do. Our marketing was completely independent,” adds Laurent Primo.And Zoomalia CTO.

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