Can you give some brief information about LCW and your responsibility within the company?

LC Waikiki is a leading global apparel retailer with 770 stores in 36 countries. The company’s philosophy is “Everyone Deserves to Dress Well” enabling people to enjoy accessible fashion through quality products at affordable prices.

I’m the Director of eCommerce at LCW, responsible for the whole operation from analyzing, reviewing and making strategic changes in eCommerce operations to increase conversion rates, increasing average order values, to improving and customer retention while managing margin performance.

How heavily do you rely on digital ads? How much of your budget do you invest in retargeting ads?

LCW’s eCommerce operations are available in 43 countries and 5 languages. That means a huge volume of traffic of online customers, plus a great many chances to capture their attention. Approximately 35% to 40% of our digital marketing budget is invested in digital advertising. Digital ads offer a unique chance to promote and increase the visibility of your brand, as they reach a vast audience. One thing I’m sure of is that the more people your brand serves, the more cost-efficient digital advertising gets. That’s why digital advertising is an irreplaceable part of our marketing strategy.

The most valuable aspect of digital ads for us is that it can be much more targeted than traditional advertising. This is where Insider comes into play. Insider helps us get to know our customer base better, dividing them into actionable micro segments and engage each one of them with relevant content.

What channels and technologies did you use to deliver ads before?

Our main channel was GA before Insider. It still is. Only that Insider enables LCW to make better use of Google Adwords with its capability to push predictive segments into 3rd party ad channels such as AdWords. We use Insider’s likelihood to purchase model to create predictive segments within our ad channels. In Likelihood to Purchase model, a visitor’s likelihood to achieve a predefined goal in the next 7 days is predicted and visitors are grouped into segments based on their probability as High Likelihood to Purchase, Low Likelihood to Purchase etc. This way we can deliver our digital ads to different audiences with a different strategy which increases the effectiveness of our ad campaigns hence, makes our digital content more engaging for customers.

How were the results? What was your ROI?

We measured an ROI that is significantly higher than before and these results are just for one week. We are sure that it is going to reach a better value after we optimize the campaign. Insider’s predictive segmentation technology provided us with insight into which customers are going to make purchases and what part of our advertising and purchase processes can be improved. With predictive segments, we were able to pinpoint the smallest groups of customers according to their overall traits.

How do you think predictive modelling will impact customer experiences in the near future?

Correctly anticipating the future behaviour of customers is very valuable both for marketers and for us, C-level executives. It’s also another gem on the customer’s side as it delivers right to the point content the customers would want to be delivered. I think predictive marketing technology is very revolutionary in the sense that it concerns the future behaviour of customers, rather than the historical data. I believe implementing predictive modelling in all elements of the customer experience journey is going to be a game changer in how brands communicate to their customers.