UP TO 45% INCREASED CONVERSION RATE USING AUTOMATED CAMPAIGNS

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1 SUCCESS STORY: TOYS R US UP TO 45% INCREASED CONVERSION RATE USING AUTOMATED CAMPAIGNS Toys R Us stores are known worldwide as the ultimate destination for kids, big and small! Using the advanced customer segmentation, customizable design, and real-time marketing automation of the Emarsys B2C Marketing Cloud, Toys R Us brought the success and renown of their brick-and-mortar stores to their online experience. 45% 4x 40% Increased conversion rate Team productivity and efficiency Increased average order value for repeat purchases THE CHALLENGE The Toys R Us brick-and-mortar store model has made them a hugely profitable brand. Toys R Us employs friendly staff who are always there to welcome customers, get to know them personally, and help them find and try out new products every time they visit. This personal touch is the hallmark of Toys R Us success, but seemed impossible to replicate online and at scale. Keeping online customers engaged required constant manual input from the small e-commerce team. Their ing system was unwieldy and kept them limited to generic s, distributed in bulk and only optimized for desktop users. Customer intelligence was limited to monitoring clicks and opens, with only one automated campaign that wished loyalty card holders a happy birthday. To increase customer engagement, the e-commerce team knew they needed tools that would give them more information about customers and allow them to create engaging, accessible, and targeted campaigns.

2 THE SOLUTION AUTOMATION + CUSTOMER INTELLIGENCE + RESPONSIVE DESIGN Our goal is to connect with our guest in a more personalized manner. Emarsys enables us to execute highly effective, automated marketing campaigns in order to achieve this goal. Thanks to Smart Insight, we are able to intelligently and strategically communicate with our customer base. Todd McElmurray, European e-commerce Marketing Director Toys R Us reassessed their e-commerce strategy, and recognized that to succeed online they needed a solution that would enable both campaign creation and automation, while also delivering deep customer intelligence. They identified the Emarsys B2C Marketing Cloud as a unified platform that delivered on all of their business needs, while providing their team with a single dashboard covering every aspect of managing customer engagement. Emarsys paired Toys R Us with a dedicated Client Success team, and together they created a roadmap to drive online purchases and encourage customers to become repeat buyers, while decreasing team workload. The plan included creating actionable customer segments, designing engaging and personalized s, and deploying a series of campaigns using real-time marketing automation. ADVANCED CUSTOMER SEGMENTATION Toys R Us used Smart Insight to segment their customers based on behavior. Customers received different s depending on their: Level of online engagement. Recency of their last purchase. Frequency of visits to the online store. Amount of money spent online. consideration each customer s CLTV (Customer Lifetime Value) and position in the Customer Lifecycle (Leads, First-Time Buyers, Active Customers, Defecting Customers). Personalization is important, but not all customers are equal. To increase revenue, it s critical to know more than just who you re messaging. You have to be able to identify where your customer is in their purchasing cycle, what the right offer is to keep them engaged or get them to convert, and balance that cost against their lifetime value. For instance: Splitting customers into these segments allowed Toys R Us to create real-time triggers based on ERFM insights (Engagement, Recency, Frequency, and Monetary value), taking into REAL-TIME AUTOMATION Toys R Us had previously sent batch s to all the contacts in their database. It didn t matter if they were loyal customers, or had just signed up without ever making a purchase. Everyone even top spending customers on the verge of defecting got the same . The Emarsys Client Success team advised that shifting to automated distribution, based on interaction triggers, would significantly increase not only open and click rates, but also conversion to purchase. The Toys R Us e-commerce team built a series of campaigns, each triggered by a different customer interaction and with offers tailored to the customer segment. The Automation Center, part of the Emarsys B2C Marketing Cloud, with a real-time automated marketing program built using the drag-and-drop components.

3 ENGAGEMENT Loyalty card holders receive a discount incentive on special occasions like birthdays and anniversaries. Customers receive a welcome with a printable incentive voucher when they sign up for a loyalty card instore. This bridges the gap between the online and in-store experience. Customers who purchased online, or used their loyalty card in-store, were sent a post-purchase Thank You . Paired with a survey asking for feedback on their experience, this shifted online communication from being purely transactional into a relationship building channel.

4 RECENCY The Customer Lifecycle dashboard shows both those customers have purchased recently, and those who are at risk of defecting. FREQUENCY MONETARY VALUE Regular customers receive seasonal sale notifications and information about the latest toys hitting the shelves. Toys R Us automatically offers free delivery to customers whose purchases are above a specific price threshold.

5 RESPONSIVE DESIGN The s Toys R Us were sending to their customers weren t optimized for mobile or tablet view. It was impossible to tell if customers weren t clicking through because they weren t interested in the offer, or because of the device they were using. Using Emarsys drag-and-drop widgets, the e-commerce team was able to create fully responsive designs. Now, Toys R Us can communicate with their customers whenever and wherever, regardless of screen size. With customizable designs, the e-commerce team was also able to create the same personalized and immersive experience customers were used to having in-store. The new campaigns weren t just easy to read, they were fun, and completely embodied the Toys R Us brand. Every optimized for the customer, ready to be opened on any screen. THE RESULTS Toys R Us now employs the above strategy in six European countries. According to the Toys R Us Commerce Director, using the automated lifecycle campaigns has decreased production time and increased the in-house team s efficiency fourfold. Since switching to the Emarsys platform, the automated programs have significantly increased engagement: open rates have nearly tripled, and click-through rates have increased 5.5 times over. The Welcome Program, created for in-store loyalty program signups, generated a 41.6% open rate and 9.6% click-through rate. Better yet, the average order value from defecting buyers increased by 23%, and repeat buyers by 39.7%. The data proved the success that implementing automation and customer intelligence could deliver, even with a small team. With a strong lift in revenue enabled by their first campaigns, Toys R Us have decided to increase their use of the Emarsys B2C Marketing Cloud to cover the entire customer lifecycle. TRUSTED BY THE WORLD S SMARTEST MARKETERS: MEMBERSHIPS: Emarsys UK Ltd. 100 Euston Street London NW1 2HQ uk@emarsys.com