“With greater engagement come greater sales” — a hypothesis that a Pushwoosh customer, X5 Group, tried and proved to be true for its Perekrestok grocery delivery app. The team applied behavioral segmentation to its growing user base, automated relevant push notifications sending and saw a 19X increase in conversion. The first results came after just six months of working with Pushwoosh. 12 months in, Perekrestok keeps experimenting to gain even more sales and higher ROI.
About Perekrestok
Perekrestok is a major innovative supermarket chain managed by X5 Group.
As an offline retailer, Perekrestok has long been acclaimed for its fresh and healthy assortment, state-of-the-art in-store equipment, and digital innovations. So when the brand launched its grocery delivery mobile app, it strived to uphold its reputation and meet customer expectations.
Challenges
Perekrestok turned to Pushwoosh in order to achieve the set goals:
- Increase the number of orders in the mobile app
- Grow customer retention
Solution: Automated Push Notifications to Drive Customer Engagement and, Hence, In-App Purchases
The Perekrestok marketing team followed the logic: to increase the number of orders in the app, they had to first boost the number of clicks on the push notifications that promoted offers.
Why did the team opt for pushes and not SMS or emails, for example? There were two main reasons:
- Push notifications are more cost-efficient than SMS.
- Pushes are easier to create, edit and target than emails.
Perekrestok knew that to achieve maximum results, the app marketers would need to experiment constantly with customer segments and push notification copies. So the channel’s (and the communication platform’s!) ease-of-use was a deal-breaker.
The team found an effective way to achieve the set goals by sending automated behavior-triggered push notifications via Pushwoosh Customer Journey Builder.
Best Practices for Automated Communication Sending
Event-triggered segmentation leads to real purchases
By segmenting customers by their behavior, an app can send them the most relevant product offers that will result in conversions.
For example, Perekrestok has discovered that the most effective communication flows are those targeted by the “Abandoned View” event. Here is how it works: when a customer has viewed a product of a certain category and has not purchased it, they receive a discount for this particular kind of goods.
Best time to send
Perekrestok’s experiments revealed there is no better time for sending appetizing product offers than the lunch break (around 1–2 p.m. local time).
Alternatively, you can try to schedule your communications for the time before or right after the end of a workday. This way, you will increase the chances of your push notification open.
Copy comes before image
Although every push notification that Perekrestok sends features a colorful image, it’s not quite the picture that matters. The app’s marketing team has stated that it’s the offer itself (and the way it’s put in words) that sells.
Keep track of the customers’ behavior in Pushwoosh Customer Journey Builder
Perekrestok has been using Pushwoosh’s top solution for more than sending automated communications. The app’s team performs customer segmentation within the tool, making use of the Set Tags feature.
The company marketers create short sequences starting with a target event — for example, “order placed”, — and then set a corresponding Tag to the buyers who have taken the specified action.
By doing so, you can keep the information about your app users’ behavior straight and use it to your advantage in future communication flows.
Results
3X higher engagement
With behavioral segmentation, push notification CTRs have tripled.
19X higher conversion
Along with the higher engagement came a positive change in the real app user behavior. 16.7% of customers who receive pushes now reach the conversion goal “Add to Basket”, which is 19 times higher than before the adoption of Pushwoosh Customer Journey Builder.
2.4% lower churn on Day 1
Thanks to the well-considered (and well-executed!) behavioral segmentation, shoppers only receive highly relevant offers from the Perekrestok app, starting from the very first day.
They immediately see value in staying connected to the app — the 2.4% lower churn rate on D1 confirms this.
2X lower churn on Day 7
By the end of the first week, two times more users chose to stay with the Perekrestok app rather than churn.
Higher app user retention
Granular targeting has improved retention in the grocery delivery mobile app: 85.92% is the resulting number.
MAU growth
As the churn rate decreased and user retention increased, the number of MAU has grown by 800k in the last six months.
Increased userbase
By the end of the first year of working with Pushwoosh, Perekrestok increased its total number of app subscribers from 1.3M to 3.9M on Android and from 0.9M to 2.9M on iOS.
Improved ROI
The Perekrestok team prefers not to disclose any precise numbers here but reassures: if you have a similar case and see all the mentioned metrics growth, you should certainly see a boost in ROI as well.
The case of Perekrestok shows that even ambitious goals of e-commerce and retail apps are quite attainable. Interested in giving your sales a boost? Start with elaborating a customer communication strategy with the help of Pushwoosh.
Contact Pushwoosh Team