The purpose: While the SMS program was a success, it was still in its infancy in terms of testing and optimization. Because of its high engagement and conversion rates, it was a top area of focus for growth.
The strategy: Implement A/B testing (see details here) and more purposeful targeting to ensure we're reaching the right people with the right content. Specifically:
- Media vs. no media testing
Targeting began with segmentation of our audience based on product affinity and frequency of purchase. This was done on the campaign level. For example:
- Each month we released a $350 limited-edition fedora. I segmented our list into customers based on fedora priced points, creating an audience of people who have either browsed these products before, purchased before, or have an affinity for specific specs like rabbit fur.
- Revenue (last click attribution) increased 22% YoY
- Ad hoc opt-out rate decreased 20% (12% channel decrease)
- 301X ROI (up 45% YoY)
- Total unique clicks nearly doubled despite sending 23% fewer campaigns
- uCTR increased by 70% to 11.8%