Hierbas Organicas, Mexico
Hierbas Organicas (Organic Herbs) of Mexico is a company dedicated to distribution of the best tea, herb and spice products. Hierbas Organicas was founded in 2013 to bring better-quality products to customers and find teas, spices, herbs, superfoods, accessories and many more things to help customers live well, eat a healthy diet and give body what it needs. Hierbas Organicas has a variety of organic and standard products to suit all tastes.
Hierbas Organicas’s challenge was common to all small businesses. The company wanted a solution that would enable them to provide a more personal touch to their customers. At the same time, Hierbas Organicas wanted to nurture relationships with their first-time buyers. They needed an increased number of repeat buyers to achieve their desired growth targets.
1. Behavioral segmentation
It took no more than few moments to process the whole purchase history. The system automatically recognized various customer segments and the corresponding revenue potentials. By discovering two particularly large segments of lapsed customers requiring activation, Jose Alberto Apezteguia, Hierbas Organicas CEO, immediately knew whom to approach and how.
2. Predictive product recommendation
A predictive model analyzes past customer behavior and suggests up to three products that each customer is most likely to purchase. Thorough measurements indicate that these recommendations are roughly 85 % more likely to bring conversions compared to random product offerings.
3. Customer retention automation
After the initial validation, Jose Alberto decided to automate his weekly emails based on our behavioral segmentation and keep enhancing the communication using our predictive product recommendations. We determined the best days for the communication, which has made Hierbas Organicas digital marketing much smarter than before.
Once Jose Alberto saw the campaign’s results, he was blown away by the revenue it generated. The campaigns have exceeded expectations more than four times.
Furthermore, we also observed a 55% higher email Open Rate and a Click Rate 47% higher than those of previous campaigns. The company also registered an extraordinarily high number of orders from returning customers, which was the goal. That resulted in the highest customer loyalty the company had ever ever achieved after a campaign. Customer loyalty almost DOUBLED compared to the average impacts of previous campaigns.
Last but not least, the Average Order Value (AOV) resulting from our campaigns has been 75 % higher than the AOV of other efforts so far.