New era for Global Shop Direct, as consumers swap TV screens for phones
Global Shop Direct has been using direct response television (DRTV) advertising to reach Australian consumers for more than 15 years. But with consumer attention increasingly split between multiple screens, the multi-channel retailer has invested in new technology to make its communications more effective.
In 2016, the retailer embarked on a partnership with global software provider Emarsys to boost customer retention and engagement through personalised web content and emails, which is now paying dividends.
Global Shop Direct says it has seen a 20 per cent incremental uplift in revenue from automated product recommendations on its website and a threefold increase in newsletter revenue, thanks to automated email product recommendations.
“The basis of what we do, the golden rules of DRTV success, is still ‘test, measure, analyse, respond’. But now we are using AI tools to do it more efficiently,” Jamie Dow, Global Shop Direct’s managing director, told Internet Retailing.
Global Shop Direct uses artificial intelligence (AI) together with real-time and historical customer data to tailor which products it displays on its website as well as what time it sends emails to customers. This resulted in a 9.7 per cent increase in open rates, according to the retailer.
The retailer is also testing an Emarsys solution that uses AI to decide what kinds of offers to give to a customer based on previous behaviour and SMS marketing.
This reflects an internal shift at Global Shop Direct to focus on customer retention, rather than just customer acquisition, which has traditionally been the case.
“If we went back in time, it’s fair to say we were acquisition-based. We focused on acquiring a single customer for a single transaction. It was more primitive,” Dow said.
“Now we’re using AI to ensure we get more repeat customers coming back by communicating what they want to hear.”