Adidas Achieves 35.31% Conversion Rate Increase from Returning Users Through Smart Segmentation

50.30

%
Uplift in Conversion Rate

35.31

%
Increasing the CR From Returning Users

258.99

%
Improved AOV From New Users

About Adidas

Adidas AG is a German multinational corporation, founded and headquartered in Herzogenaurach, Germany, that designs and manufactures shoes, clothing, and accessories. It is the largest sportswear manufacturer in Europe, and the second-largest in the world, after Nike. 

It is the holding company for the Adidas Group, which consists of the Reebok sportswear company, 8.33% of the German football club Bayern München, and Runtastic, an Austrian fitness technology company. Adidas’ revenue for 2018 was listed at €21.915 billion.

Creating promotional offers for different types of customers using segmentation.

The Adidas team aspired to boost sales by providing coupon codes for different groups of users. They wanted to A/B test various types of coupon mechanisms to arrive at the best-performing ones by measuring their conversion impact.

The Insider team helped them create a side menu coupon on the website offering a 10% discount. Variations were created for new and returning users to understand the impact across different types of customers.

This campaign successfully improved AOV from new users by 258.99%, while also increasing the CR from returning users by 35.31%.

Improving mobile browsing experience through Category Optimizer.

Due to smaller screens on mobile devices, navigating the mobile website was a pain for the customers. Adidas wanted to enhance this experience to improve conversion rates from mobile users.

The account management team at Insider suggested the use of Category Optimizer to help users find their most-searched categories faster. CO reshuffles the category menu based on the users’ browsing history to display, for example, the last viewed category on the top. By showing the users the product type they are most interested in at that point in time, Adidas was able to speed up product discovery, resulting in a more accurate, pleasing customer journey for the user.

Adidas witnessed a conversion uplift of 50.30% from their mobile users with this campaign.

Improving product discovery using AI backed Smart Recommender.

Adidas has a huge array of products across different categories. They wanted to improve product discovery by harnessing the power of AI & machine learning.

Insider’s Account Management team helped Adidas in implementing the AI-backed Smart Recommendation algorithm to display relevant product recommendations to users across all pages to aid in boosting product discovery, add-to-carts, and conversion rates.

The impact caused by Smart Recommender resulted in a 13% CR uplift on the Home Page by using a user-based algorithm, and a 7% CR uplift on the Product Page by using a complementary algorithm.

Looking Ahead

Adidas aims to further improve their conversion rates across web and mobile, increase signups and registration rates, and maximize customer lifetime value through the continuous usage of Insider’s AI-backed capabilities. 

“ Our traffic has been growing exponentially during the lockdown phase and we realized that we were ill-equipped to engage these visitors and retain them. We needed a solution that would help us implement segmentation scenarios and deliver personalization at scale in order to boost engagement and drive conversions. Insider had just the right tools and more importantly, the account managers from Insider suggested exactly the tools that we should use to achieve our objectives. So we implemented personalized product recommendations on the home page and this has helped us generate more than 26% uplift in AOV within one month. The tools they have are amazing. ”

Sam Hau

E-commerce Manager

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