The Challenge
Urban Threads, a mid-sized fashion e-commerce brand, was struggling with high bounce rates and low repeat purchases. Despite a modern website and a diverse product catalog, their analytics revealed:
- Bounce rates above 50%: Most new visitors left after viewing just one page.
- Low repeat customer rate: Only 18% of customers made a second purchase within six months.
- Generic experience: Every visitor saw the same homepage, product recommendations, and offers, regardless of their interests or purchase history.
- Missed upsell opportunities: Cross-selling was manual and inconsistent, leaving potential revenue untapped.
The leadership team wanted to create a more engaging, personalized shopping experience that would drive conversions and foster loyalty.
Discovery & Process Mapping
Our team began with a deep dive into Urban Threads’ digital journey:
- User Journey Analysis: Leveraged Google Analytics and Hotjar to map how users navigated the site, identifying drop-off points and engagement gaps.
- Segmentation: Grouped customers by behavior—first-time visitors, returning shoppers, frequent buyers, and cart abandoners.
- Content Audit: Reviewed all website elements, email campaigns, and product recommendation logic.
- Stakeholder Interviews: Gathered insights from marketing, sales, and customer service to understand pain points and wish-list features.
Key Findings:
- Returning customers were not recognized or rewarded.
- Product recommendations were static, not tailored to browsing or purchase history.
- Email campaigns lacked dynamic content, resulting in low open and click rates
Solution Design & Technology Implementation
1. Personalization Engine Integration
Technology Used: Dynamic Yield (AI Personalization Platform), Shopify
- Integrated Dynamic Yield with Shopify, enabling real-time tracking of user behavior and preferences.
- Set up AI-driven recommendation widgets for homepage, product pages, and checkout.
2. Behavioral Segmentation & Targeting
- Defined segments: new visitors, returning customers, high-value shoppers, and at-risk churners.
- Created personalized banners, offers, and product carousels for each segment.
3. Dynamic Content & Offers
- Built rules for AI to display relevant promotions based on browsing history, cart value, and past purchases.
- Implemented exit-intent popups with personalized discounts for cart abandoners.
4. Personalized Email Automation
Technology Used: Klaviyo
- Synced website behavior with Klaviyo to trigger dynamic, personalized emails.
- Launched campaigns for abandoned carts, product recommendations, and loyalty rewards.
5. Continuous Optimization
- Set up A/B tests for homepage layouts, product recommendations, and offer placements.
- Used Dynamic Yield’s analytics to refine segments and content rules weekly.
Implementation & Change Management
- Pilot Launch: Deployed personalization on the homepage and product pages for a subset of users, monitored engagement and conversion rates.
- Team Training: Provided workshops for marketing and content teams on using Dynamic Yield and interpreting analytics.
- Full Rollout: Extended personalization to all site pages and integrated with Klaviyo for email automation.
- Ongoing Support: Monthly review meetings to analyze performance and adjust strategies.
Visual Results
Before:
- Static homepage and product recommendations
- High bounce rates and low engagement
- One-size-fits-all email campaigns
- Limited insight into customer preferences
After:
- Homepage and product pages adapt in real time to each visitor
- Personalized offers and recommendations increase engagement
- Dynamic, segmented email campaigns boost open and click rates
- Management dashboard provides live insights into segment behavior and campaign ROI
Brand Book
Urban Threads transformed its digital experience, delighting customers with relevant content and offers. The brand became known for anticipating shopper needs and rewarding loyalty, leading to increased word-of-mouth and social sharing.
Results & Impact
- Bounce rate reduced by 23%
- Repeat purchases increased by 35%
- Average order value up by 17%
- Customer lifetime value increased by 21%
- Email open rates increased by 38% and click-through rates by 44%
- Revenue from personalized recommendations accounted for 27% of total sales after six months
Looking Forward
Urban Threads now has a scalable personalization engine that adapts to new products, trends, and customer behaviors. The brand is positioned for continued growth and customer loyalty in a competitive market.
Ready to create a shopping experience your customers will love?
Let’s personalize your digital journey with AI-driven solutions.