A coupon strategy that works
In 2019, 99 Ranch launched its online shop for customers to do their grocery shopping whenever and wherever they wanted. Nearly a decade later, most supermarket and grocery store chains have an online presence with the option of ordering groceries online — something that proved essential during the peak of the Covid-19 pandemic.
To compete in an increasingly saturated market, 99 Ranch partnered with Appier to optimize its online shop’s performance. The challenge, as with most e-commerce websites, was getting visitors to add items to their carts and follow through with their checkout.
Conventional wisdom has it that coupons can incentivize and increase shopping. However, all coupons or coupon delivery systems are not created equal. 99 Ranch deployed Appier’s conversion optimization cloud, AiDeal, for maximum effectiveness.
Where AiDeal differs from the traditional coupon delivery system is that it only presents coupons to hesitant shoppers. By doing so, 99 Ranch was able to save on its coupon budget and maximize revenue, presenting coupons only to those who needed it and not to those who would have purchased regardless.
A collaboration between human marketers and AI
99 Ranch saw a significant improvement in its online store’s performance because of how well its marketers used the AiDeal solution. This was made possible in part because of AiDeal’s customer-centric features and design.
“AiDeal’s data-driven approach is able to show me the campaign results in clear metrics and my return from running the promotion,” James Ho, 99 Ranch’s Head of E-commerce, said of the AI solution.
Leveraging AiDeal’s ability to spot hesitant shoppers, the company worked closely with Appier’s campaign management team to devise a strategy to incentivize them to shop more and check out.
“The campaign management team is very responsive in making suggestions to help me to achieve my business goals,” Ho noted.
The strategy that proved successful was a time-limited 20% off discount for orders that were USD120 or more. The incentive of a 20% discount coupled with the urgency of a 30-minute time limit prompted shoppers to actually check out with more in their shopping carts.
The supermarket chain experienced a 29% increase in conversions and 6% increase in average order value during the period that it used AiDeal. Overall, AiDeal and its AI-powered coupon delivery strategy accounted for 55% of total onsite revenue.
