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How the Boils Company Used Cross-Sell Emails to Boost Average Order Value

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The Boils Company, a leading provider of high-quality skin care products, recently implemented a strategic email marketing campaign focused on cross-selling that resulted in a significant increase in their average order value (AOV). By leveraging customer data and personalized product recommendations, the company was able to effectively encourage existing customers to purchase additional items, leading to a substantial boost in revenue.

Identifying the Opportunity

The Boils Company had long recognized the importance of email marketing as a powerful tool to engage with their customer base and drive sales. However, the team noticed that while their email open and click-through rates were respectable, their AOV had remained relatively stagnant over the past few years.

“We were seeing good engagement with our newsletters and promotional emails, but we weren’t necessarily capitalizing on the full revenue potential of our customer base,” explained Sarah Thompson, the company’s Director of Digital Marketing. “We knew there had to be a way to encourage our existing customers to add more items to their carts without being too pushy or annoying.”

After conducting a comprehensive analysis of their customer data and purchase behavior, the Boils Company identified a significant opportunity to improve their AOV through cross-selling. They observed that many of their customers were making repeat purchases of their core products, but were not taking advantage of the company’s full product line.

“Our customers really loved our signature boil treatment creams and serums, and they were coming back to reorder those items time and time again,” said Thompson. “But we noticed that they weren’t necessarily exploring our other offerings, like our cleansers, moisturizers, and spot treatments. We realized that if we could effectively cross-sell those complementary products, we could potentially see a meaningful lift in our AOV.”

Developing the Cross-Sell Email Strategy

Armed with this insight, the Boils Company set out to develop a strategic email marketing campaign focused on cross-selling. The goal was to create a seamless and personalized experience that would encourage customers to add additional products to their orders without feeling like they were being upsold.

The first step was to segment their email list based on customer purchase history and behavior. They identified several key segments, including:

  1. Repeat Customers: Customers who had made at least two previous purchases of the company’s core boil treatment products.
  2. High-Value Customers: Customers with an AOV above the company average.
  3. Lapsed Customers: Customers who had not made a purchase in the last 6 months.

“We knew that we needed to take a tailored approach to each of these segments,” said Thompson. “Repeat customers might respond better to recommendations for complementary products, while high-value customers might be more receptive to exclusive offers or bundles. And for lapsed customers, we wanted to focus on re-engaging them with personalized product suggestions.”

Next, the Boils Company’s marketing team worked closely with their product and data teams to develop a series of personalized cross-sell email templates. These emails would feature product recommendations based on each customer’s purchase history and browsing behavior, as well as any relevant discounts or promotions.

To ensure the emails were as effective as possible, the company conducted extensive A/B testing on various elements, including subject lines, email copy, product imagery, and call-to-action buttons. They also closely monitored customer engagement metrics like open rates, click-through rates, and conversion rates to continually optimize their approach.

Launching the Cross-Sell Email Campaign

In the summer of 2022, the Boils Company launched their cross-sell email campaign, rolling it out in phases to their different customer segments.

For their repeat customers, the company sent a series of “You Might Also Like” emails that featured personalized product recommendations based on the customer’s previous purchases. These emails highlighted complementary items that would enhance the customer’s existing routine, such as a hydrating facial mist to pair with their favorite boil treatment serum.

“We really wanted to position these cross-sell emails as helpful suggestions, rather than pushy upsells,” said Thompson. “By framing the recommendations as ways to elevate the customer’s existing routine, we found that they were much more receptive to adding those extra items to their carts.”

The emails sent to the company’s high-value customers took a slightly different approach. In addition to personalized product recommendations, these emails also featured exclusive offers and bundles, such as a limited-time 20% discount on a curated set of the customer’s most-purchased items.

“Our high-value customers are always on the lookout for great deals and special offers,” explained Thompson. “By coupling our cross-sell recommendations with an attractive discount, we were able to encourage them to expand their orders and explore more of our product line.”

For the lapsed customers, the Boils Company took a more reactivation-focused approach. Their cross-sell emails highlighted a selection of the customer’s previous purchases, along with personalized recommendations for complementary items they might have missed. These emails also included a special offer, such as a free sample or a discount on their next order, to incentivize the customer to make a purchase.

“We knew that the lapsed customers might need a little extra nudge to come back and shop with us again,” said Thompson. “By reminding them of the products they loved, while also offering an enticing incentive, we were able to successfully re-engage them and get them to explore new items in our catalog.”

Measuring the Impact

The Boils Company closely monitored the performance of their cross-sell email campaign, analyzing a range of metrics to gauge its effectiveness.

One of the most significant metrics they tracked was the overall increase in AOV. Prior to the campaign, the company’s AOV had hovered around $45. However, after implementing the cross-sell email strategy, they saw a remarkable 28% increase, with the AOV rising to $57.

“The impact on our AOV was immediate and substantial,” said Thompson. “We were thrilled to see that our customers were not only engaging with the cross-sell emails, but they were also adding more items to their carts as a result.”

In addition to the AOV uplift, the Boils Company also observed a number of other positive performance indicators:

  • Open Rates: The cross-sell emails had an average open rate of 32%, significantly higher than the company’s standard promotional emails.
  • Click-Through Rates: The click-through rates on the cross-sell emails averaged 18%, compared to a typical rate of 12% for the company’s other email campaigns.
  • Conversion Rates: The cross-sell emails had an average conversion rate of 14%, compared to the company’s overall site-wide conversion rate of 9%.
  • Customer Retention: The company saw a 12% increase in customer retention rates among the repeat and high-value customer segments that received the cross-sell emails.

“The data really speaks for itself,” said Thompson. “Our cross-sell email campaign not only drove a substantial increase in AOV, but it also led to higher engagement, better conversion rates, and improved customer loyalty. It’s been a true game-changer for our business.”

Lessons Learned and Future Plans

The Boils Company’s successful cross-sell email campaign has provided valuable lessons and insights that the company plans to apply to their broader marketing and ecommerce strategies.

One key takeaway was the importance of personalization and relevance. By tailoring the product recommendations and offers to each customer segment, the Boils Company was able to create a highly engaging and effective experience that resonated with their audience.

“It’s all about understanding your customers and their unique needs and preferences,” said Thompson. “The more personalized and relevant you can make your marketing, the better the results will be.”

Another important lesson was the value of ongoing optimization and testing. The Boils Company’s marketing team continually refined their cross-sell email templates and strategies based on the performance data they collected.

“We didn’t just launch the campaign and let it run on autopilot,” explained Thompson. “We were constantly tweaking and testing different elements to ensure we were getting the best possible results. That iterative approach was crucial to the campaign’s success.”

Looking ahead, the Boils Company plans to expand their cross-sell email strategy to other areas of their business, such as their loyalty program and post-purchase follow-up communications.

“We’ve seen the incredible impact that cross-selling can have on our AOV and overall revenue,” said Thompson. “Now, we’re looking at ways to incorporate those principles across our entire customer journey, from acquisition to retention and beyond. We’re really excited to see what other opportunities we can uncover.”

By leveraging customer data, personalized product recommendations, and strategic email marketing, the Boils Company has demonstrated the power of cross-selling to drive meaningful business growth. Their success serves as an inspiring example for other ecommerce businesses looking to boost their average order value and deepen their customer relationships.

References

  1. The Importance of Personalization in Ecommerce Email Marketing
  2. 5 Proven Strategies to Increase Average Order Value
  3. The Ultimate Guide to Cross-Selling and Upselling
  4. How to Use Customer Segmentation to Boost Ecommerce Sales
  5. 10 Ecommerce Optimization Tactics to Increase Revenue

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