Improved Paid Search Conversions and Customer Experience Along with Reduction in Abandonment Delivers Bottom Line Results
EL CERRITO, Calif., April 19, 2022 /PRNewswire-PRWeb/ -- After years of disruption, JCPenney made a strategic shift to move away from using blanket discounts and other traditional methods of boosting online sales to a more targeted approach using Metrical's predictive AI modeling-based solutions modeling. The results have been exceptional including a 40% increase in new cart creation, an 18% reduction in cart abandonment, and a 10% improvement in revenue on targeted visits
Pratik Kodial, JCPenney's VP of Marketing Effectiveness recently sat down with Cogent's Sean Simon to discuss how Metrical has helped them achieve these results and what lies ahead. Note some responses have been edited for brevity.
On the Main Problem Metrical Helped JCPenney Solve
Pratik explained that starting in 2018, JCPenney's online conversion rate wasn't where they wanted it to be and were frequently using discounts to drive sales, which came with a high cost and was unsustainable. The goal was to convert customers without sacrificing margin.
"Our thought was how do we get those conversion levels and Metrical was a great solution for us because they focused on those customers who had the highest intent of purchase but were potentially going to abandon," Pratik said. "We're not necessarily throwing out coupons but being more targeted with our approach." Interview Clip: https://youtu.be/ds11D5L3IOM
Extending the Partnership, Achieving Goals and improved Customer Experience
"The fact we moved forward indicates we met our internal sales and margin goals", Pratik said. "One of the other things that we were looking into is the aspect of customer experience. I don't believe customers like pop-ups but what we saw in the context of the Metrical customers and their messaging was no degradation in Net Promoter Score (NPS) which is what we use to measure customer experience. This was quite interesting, and we believe this program is successful."
Pratik then gave an example based on past experiences where pop-up surveys had caused a decline in NPS but they did not see that happen using Metrical. Interview Clip: https://youtu.be/FSDEbNmuzNU
Performance, ROI and Incremental Revenue Results Using Metrical
Pratik stated that as a privately held company he cannot reveal specific numbers but said they performed a cost-benefit analysis to understand what actually fell to the bottom line. He then detailed how they took conversion revenue and subtracted all associated costs including cost of goods sold, marketing costs, shipping and more to arrive at a net bottom line that was triple than what they had experienced prior to using Metrical.
Interview Clip: https://youtu.be/WEgrAXCcgJ4
Examples of Other Benefits, Insights, and improved Conversions
"One example is paid search. I've already paid money to get these customers onto the website, hence conversion becomes even more critical," Pratik said. "Another challenge is if there's a particular category that has not sold as well and we see a customer who has those items in their cart and could potentially abandon."
Pratik explained how they can use Metrical's repository of tools to see which ones have the potential to convert the shopper into buying. "Metrical's insights have proven to be valuable in long and short-term planning and we continue to experiment with new ways to utilize them," he concluded. Interview Clip: https://youtu.be/cIKaMwsL_bM
"JCPenney is an ideal customer because they continually challenge us to try new things and expand our capabilities," explained Zabe Agha, Founder and CEO of Metrical. "But they are far from unique. Many of our customers see conversion rates improve anywhere from 15% – 36%, revenue increase from 5% - 37%, and cart abandonment rates drop 5% - 25%. This in addition to increases in overall cart size and value, more time spent on site and over 1100% improvement in Return on Ad Spend (ROAS)."
To view the entire interview, go to https://youtu.be/eyaBJ0yMNgA
About JCPenney
JCPenney proudly serves customers at more than 650 stores across the United States and Puerto Rico and at the Company's flagship store, jcp.com. JCPenney is one of the nation's largest retailers of apparel, home, jewelry, and beauty merchandise with a growing portfolio of private and national brands. Guided by the Golden Rule, JCPenney employs more than 50,000 associates worldwide and has served customers for over 119 years, playing a vital role in the communities it serves. For additional information, please visit jcp.com and follow JCPenney on Twitter.
About Metrical
Metrical (metric.al) is the leading provider of predictive shopper engagement solutions that increase online cart creation and conversion rates, improve customer loyalty and drive increased revenue. Their AI-based software enables retailers to optimize their digital funnel by predicting customer behavior, engaging customers in real-time, and enhancing their overall experience.
About Cogent
Cogent (becogent.co) is a community of world-class Marketers and eCommerce leaders, who are looking to stay at the forefront of innovation in their industry. We work with brands and agencies to help them navigate the noisy world of AdTech, MarTech, and eComm Tech in an effort to help them solve the business challenges they are facing today, without having to take countless meetings and sift through dozens of potential solutions.
Contact: Rameet Kohli, COO
Phone: (510) 898-6880
[email protected]
Metrical
221 Behrens Street
El Cerrito, CA 94530 USA
http://www.metric.al
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Media Contact
Rameet Kohli, Metrical, 1 510-898-6880, [email protected]
SOURCE Metrical
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