Turning Challenges into Growth: How AFW Achieved Success Despite Economic Turbulence
12%
Increase in conversions from email marketing compared to 2022
8%
Increase in campaigns click rate compared to 2022
9%
Increase in campaigns placed order rate compared to 2022
The Story
Our partnership with AFW started way back in 2020. Our goal is to continuously help our partners to grow and prosper over the years.
The Problem
The Australian market has been hit with several economic challenges in 2023 making it harder for many brands to stay profitable. With the increasing inflation, business costs increased – making the profit margin of brands lower. This is a serious situation for brands like AFW which only have small profit margins. AFW offers warehouse pricing. They provide high quality furniture priced at up to 80% less than other retailers.
Despite all the market challenges, AFW was able to outperform 2022’s email marketing performance.
The Solution and the Approach
1. More advanced flow setups
We’ve created more touch points during the subscribers’ prepurchase stage. With AFW high-ticket offerings, focusing on this stage is an effective way to maximize AFW conversion.
Additionally, we’ve ensured that the messaging for purchasers and non-purchasers are distinct. This gave added personalization for subscribers improving retention.
2. Strategic content planning
Contents were planned in advance and in accordance with the business and email goals for the month, quarter, and year. We focused on improving certain metrics in each quarter ultimately leading to preparedness in Q4.
By Q4, we are only sending high value emails to our more engaged and have high purchase intent subscribers.
3. Advanced segmentation and targeting
This was the key to increase our list utilization without sacrificing deliverability.
Campaign categories and subscriber preferences were created. Through proper segmentation, we were able to provide value to subscribers with each campaign they receive.
We’ve also used segmentation to slowly re-engage with our dormant subscribers.
4. A/B testing
We’ve made conclusions based on data and not assumptions. We’ve constantly tested different hypotheses to find out what works best for our subscribers in the present. We’ve constantly re-evaluated even the best performing strategies in the past.
We’ve partnered with AFW since 2020 and did almost all kinds of testing. And through constant testing, we’ve proven that what worked in 2020 is different from what works in 2023.
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- Other Furniture
The Results
12%
↑ conversions from email marketing
(Compared to 2022)
8%
↑ campaigns click rate
(Compared to 2022)
9%
↑ campaigns placed order rate
(Compared to 2022)
Summary
Since 2020, Chronos Agency has helped Australian Furniture Warehouse (AFW) achieve exceptional email marketing success, even amidst the economic challenges of 2023.
By leveraging advanced segmentation, personalized messaging, and strategic content planning, AFW saw a 12% increase in conversions, a 7.97% boost in click rates, and a 9.29% improvement in order rates.
This case study showcases how data-driven retention marketing strategies can drive growth and profitability in competitive, high-pressure markets.
Key Takeaways
- Tailoring messaging for purchasers and non-purchasers significantly boosted engagement and retention, proving the power of personalized communication.
- Regular A/B testing and adaptation to evolving subscriber behaviors allowed AFW to refine its strategies and maximize ROI.
- Effective use of segmentation improved email list utilization without sacrificing deliverability, allowing for targeted and impactful campaigns.
- Focused retention strategies enabled AFW to navigate inflation and rising costs, delivering a 12% increase in email conversions year-over-year.
- Quarterly goal-setting and pre-planned content ensured consistent performance throughout the year, leading to strong results in Q4.
