Case Study: The Launch and Acceleration of The Outlet24’s Online Platform
With aCommerce end-to-end ecommerce solutions, The Outlet24 grew its GMV at 69% average annual growth rate since its launch.
“Providing a positive online experience and reaching the right target audience are important key factors to promoting our lifestyle products effectively. aCommerce has been greatly contributing to our success for Theoutlet24.com – driving good quality traffic to the site with many insightful updates and initiatives on online marketing. We are looking forward to building a greater success with the team on our new website – Matter.co.th”
GM at Central Trading Co., Ltd.
- Launch an online store to expand its distribution channel of an existing offline store
- Generate online sales from product lines and brands offered at its offline store
- Build a customized and responsive website using Magento
- Launch online marketing campaigns to acquire and retain customers
- Integrate online store with aCommerce’s fulfillment and delivery system
- Enable Cash-on-Delivery (COD) through aCommerce’s own fleet and 3PLs
- Achieved 69% average annual growth rate in GMV and 26% average annual growth in traffic from 2014 to 2016 with the same marketing budget
- Achieved 30% uplift in revenue after the introduction of COD option
- Expanded the online businesses of bestselling brands on The Outlet24 such as Laura Mercier and The Body Shop into standalone sites
Central Marketing Group (CMG) is a leading distributor of imported & local fashion and lifestyle brands such as Wrangler, G2000, La Senza, Laura Mercier, The Body Shop, Casio, Dyson and many more with retail locations across Thailand. In order for their customers to have access to these great brands at affordable prices, CMG decided to open an outlet store under The Outlet24 in Bangkok.
Not long after the introduction of the The Outlet24 offline store, CMG decided to launch an ecommerce store to expand its reach and address market opportunities beyond Bangkok.
This ‘anywhere and anytime’ store provides the same level of access to hundreds of brands under CMG group, ranging from clothing, beauty, mom & baby, and electronics. In 2013, aCommerce was chosen as a professional partner to build scalable infrastructure, grow its customer base, and fulfill its customer needs to help The Outlet24 realize its ambitious goals.
To deliver a great online experience in a mobile first country such as Thailand, where ecommerce was almost unheard of, aCommerce did not only build a mobile responsive ecommerce store that looked visually engaging but also enabled various payment options to facilitate Thai shoppers.
With credit card penetration of only 5.5% according to Newzoo report in 2015 and high cancellation rate of over the counter payment, aCommerce enabled Cash-On-Delivery (COD) payment method.
Consumers picked this payment option up very well as it also created trust between sellers and buyers, contributing over 70% of ecommerce transactions in the region. The Outlet24 also saw a 30% uplift in revenue after the introduction of COD. In early 2017, aCommerce enabled installment payment option to lower purchase barrier of high ticket items, resulting in 20% boost in conversion of costly electronics items such as Dyson.
After the site is ready, before starting to drive traffic to it, aCommerce marketing team started by building a solid foundation in scaling marketing initiatives by planning and implementing tracking pixels through Google Tag Manager, including Google Analytics pixels, Google AdWords pixels and other tracking pixels.
This is a very important step for us as accurate tracking and data are key to make informed decisions on the best strategies to reach The Outlet24’s ambitious revenue and very tight cost-of-sales targets.
aCommerce has utilized multiple online marketing channels together to create a smooth customer experience, starting from building awareness and acquiring customers to retaining them for The Outlet24. We started by showcasing well-known brands that The Outlet24 offers on Google Display Networks and Facebook ads.
Running display ads has proven to increase search volume for keywords related to The Outlet24 and featured brands where we use Search campaigns to capture the purchase intent of users. Concurrently, we also used Gmail ads to increase number of subscribers and send out newsletters to onboard new subscribers by highlighting different categories and offering incentives to try our service. Our customers are reminded about The Outlet24 through dynamic remarketing and email marketing to keep them coming back.
One of the marketing channels that delivered highest performance for The Outlet24 is Search advertising, as we adapted our Search campaigns to the nature of The Outlet24’s business. For example, The Outlet24’s fashion section is divided into men’s fashion and women’s fashion and further broken down into subcategories such as shirts and pants.
This structure is not ideal for our Search campaigns as when a user searches “shirts,” we need to decide if we should send the user to men’s and women’s pages. Our Search Specialists navigated this issue by utilizing Google’s signals such as demographics, Google Analytics segments, and Customer Match to identify gender of fashion shoppers in order to display gender-specific ad copy and sitelinks.
As the name suggests, The Outlet24 is an outlet with limited number of inventory for each product and multiple promotions running at the same time. Therefore, aCommerce brought ATKINS, our own proprietary algorithm, into play.
ATKINS did not only alert search specialists when inventory level is low and automatically turn off campaigns when stock ran out, but it also turn on/off sitelinks with promotion details automatically when a promotion starts and ends. This has helped us deliver relevant ads to users.
These efforts helped propel The Outlet24’s 230% increase in sales through Search ads in 2016.
Besides Search ads, aCommerce used our customized Gmail Ads to grow The Outlet24’s subscriber list as part of customer acquisition strategy. After we found that many of the users who clicked on Gmail ads banner did not subscribe to the mailing list on the site, we created customized Gmail Ads where users can subscribe directly on the Gmail ads.
The lead form was directly built into the ad and cut down steps users needed to take. The email addresses collected by the form were sent directly to Email Service Provider (ESP) and triggered email containing a coupon code to encourage trial in real time. This approach significantly increased the number of customers by reducing Cost per Lead by 40% and, out of those leads, over 10% converted within the first week.
As a result of efforts to constantly source great products at great prices and deliver great experiences for customers, The Outlet24 has achieved 69% average annual growth rate in GMV and 26% average annual growth in traffic from 2014 to 2016, despite maintaining its marketing budget over the years.
Now, at the beginning of our 5th year working together, The Outlet24 and aCommerce continue to collaborate in bringing convenience, happiness and satisfaction to customers. A vital example of our collaboration is the launch of two ecommerce sites, Laura Mercier and The Body Shop, both of which saw strong performance on The Outlet 24.