Satisfied customers always come back - case study
Since its inception in 1991, Magistrat International, Ltd. has been one of the most successful companies in Slovenia. It is a leading distributor of well-established food brands such as Lindt, Bahlsen, and Chupa Chups, and the largest retailer of clothing in Slovenia, featuring over 130 globally successful brands including GAP, Hugo Boss, Desigual, Max Mara, Versace, Polo Ralph Lauren, and others. They operate 33 physical stores across Slovenia, Serbia, Croatia, and Hungary, as well online sales of the fashion brands they represent.
Why did Magistrat International undertake a project with FrodX?
Like many online retailers, Magistrat faces fierce global competition and changing consumer habits, further impacted by the pandemic. Business analysis revealed significant untapped potential in their online sales. So they partnered with FrodX to boost the profitability of their online store by introducing customer retention tactics for GAP's online clothing store.
Main challenges driving the project
The fact of the matter is, the younger generation shops differently today, online shopping for clothes has become a standard. Competition is fierce, and having a renowned & famous brand is no longer enough. Customers need to be offered a comprehensive, personalized experience. Communication with customers must be tailored to their preferences, habits, and tastes, we also have to choose the right channel of communication as well as timing.
To make the most of the potential of online sales, all marketing processes need to be automated. A significant gap was identified in campaign preparation. Campaigns shouldn't be generic unplanned but active and triggered by individual customer actions (their relationship with GAP, favorite clothing categories, demographic characteristics, etc.).
Main challenges:
- changed consumer habits,
- need for personalized communication,
- automation of msrketing processes.
Creating an environment where customers feel good
Customer retention projects require creating an environment where customers feel good and activities that improve their satisfaction. Of course, it helps to offer them quality products, but every successful project needs to be ran by people with a clear goal and an understanding of the importance of having positive team spirit. Throughout the project, I had excellent colleagues who made their wishes and expectations clear as well as provided effective solutions. I'm pleased that, thanks to excellent and fair cooperation, the project is running smoothly, and the initial business results are very positive.
Mojca Trbič
Project manager
FrodX
What if the company wouldn't have embraced change?
The decision to start the project was very easy, thanks to an analysis of the current state and the consequences to follow if the company failed to adapt to the market and consumer demands .
| State | Consequences of inaction |
|---|---|
| Online clothing sales are facing changing consumer habits, with younger generations shopping differently, often online and with globally popular providers. | Revenue decline If GAP's online store did not offer a comparable or better experience than competitors, they would gradually lose touch with customers, who would prefer other providers. |
| The vast amount of information online retailers use to attract customers' attention. | Less attention and traffic If every GAP's message remains just one of many, the chances of capturing customer attention are very small. Personalizing messages in regards to content, timing, and channel is essential! |
| Unexploited marketing automation possibilities for continuously active campaigns triggered by customer behavior, characteristics, or product interests. | Unexploited revenue potential On a dynamic and competitive market, companies can quickly lose customers if they don't adjust their customer retention approach. Personalized customer engagement tactics are very effective, and retained customers bring additional sales and revenue. |
| E-mail is the main (or only) communication channel with customers. | Fewer sales, less visibility While email is very effective, neglecting other, especially younger, popular channels reduces brand recognition and presence. Using various channels and media increases visibility and sales. |
The success of the project we started depends not only on the technology (which, of course, needs to be suitable and powerful enough) but also on the expertise of our partner and the quality of our collaboration. I am pleased to describe our partnership with the FrodX team as exceptionally proactive and backed by extensive business and technical knowledge. Throughout the project, we clearly understood each participant's role and purpose. The very active and goal-oriented approach of the FrodX team consistently motivated us.
The initial positive business effects appeared fairly quickly, but persistence and patience are needed to fully realize the project's maximum potential. Therefore, I look forward to continuing the project.
Ana Kosec
E-commerce manager
Magistrat International, d. o. o.
SAP Emarsys Customer Engagement: Six Steps to Increasing Sales
SAP Emarsys Customer Engagement was ranked among the leading solutions in the categories of digital sales and personalization by the consultancy firm Gartner in 2022.
To successfully implement changes and achieve set goals, we used SAP Emarsys Customer Engagement and established six main activities for three countries in a single Emarsys account, which led to increased sales:
- dynamic website adjustment for visitors,
- 10 customer retention tactics,
- personal recommendations on the website,
- introduction of a new channel (push notifications in the browser),
- personalization of newsletters based on recipient interests and timing,
- lead generation.
The Perfect Tool for the GAP Project
SAP Emarsys Customer Engagement enables the setting up of processes and execution of all planned activities - this helped GAP optimize their approach to customers and achieve their goals. Emarsys' advanced analytics allow detailed analysis of various KPIs, helping us to come up with the most sensible tactics to strengthen customer activities and bring us closer to sales targets.
Before, the focus was on general campaigns, but after implementing Emarsys, we established automated processes that respond to customer actions. We wanted to offer customers the most relevant content, which we achieved by actively monitoring analytics, continuously optimizing established campaigns, and using a recommendation system in both, email campaigns and the website.
Since everyone has different preferences and activity levels across various channels, Emarsys is perfect for maintaining multi-channel customer relationships. Its built-in AI model identifies the best communication channel for each customer, boosting our sales even further.Tamara Unetič
Emarsys specialist
FrodX
Results
In the first six months of the project, the results compared to the same period last year were very encouraging, and with consistent activity implementation and continuous process improvements, they will undoubtedly improve further.
| 48,98 % more active customers |
14,83 % higher average order value |
46,66 % of departing customers retained |
3,1 % |
