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Retail Tech case study: Forever New’s ad spending returns increase 30X

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Forever New also achieved 85% return customers while clocking an average order transaction (AOV) of Rs6000

Mumbai: In 2006, Dipendra Goenka, started Forever New with a vision to offer elegant and stylish clothing to women worldwide. Today the chain boasts a network of 250 stores in 12 countries.

In 2007, the Melbourne, Australia-based brand marked its entry into the Indian market. Over the years, the brand solidified its presence in the country with 41 stores located in metropolitan cities like Delhi NCR, Mumbai, Bengaluru, Hyderabad, Kolkata, Pune and Chennai among other cities.

Along with its brick-and-mortar stores, the brand is available across various third-party e-commerce platforms, including Myntra, Nykaa Fashion, Tata Cliq, and Shoppers Stop in addition to its own website.

The Need for Technology
With e-commerce taking off in the country, Forever New recognized the need to enhance its e-commerce capabilities to meet the evolving demands of its tech-savvy consumers. As an omnichannel brand, it sought to leverage technology to create a seamless shopping experience and cater to customers’ preferences. The brand also aimed to improve customer engagement, boost conversions, and gain valuable insights into consumer behaviour through data-driven strategies. To achieve these goals, Forever New partnered with GreenHonchos, a full-stack e-commerce consulting firm known for its expertise in optimizing online retail operations.

The Approach
With the help of GreenHonchos Navigator Dashboard, Forever New gained access to real-time performance data, website traffic insights, conversion rates, and consumer behaviour analytics. This enabled the brand to track its progress, identify areas of improvement, and make informed decisions to enhance the overall customer experience.

Leveraging GreenHonchos’ expertise, Forever New focused on creating customized communications for specific consumer cohorts, catering to their unique needs and preferences. By curating entire looks instead of merely showcasing individual products, the brand aimed to offer a more personalized shopping journey.

In collaboration with GreenHonchos, Forever New implemented technology-driven changes on its website, optimizing the landing pages for quicker user journeys and higher conversion rates. The partnership also involved refining the content strategy, shifting from product-focused communications to engaging brand stories, resulting in better customer engagement and loyalty. By leveraging social media strategies, Forever New successfully communicated its brand story and increased organic traffic, leading to higher sales on its website.

Business Impact
The partnership with GreenHonchos yielded a significant business impact for Forever New. “The brand’s average conversion rate increased from 0.9% in 2021 to 1.2% to 1.3% in 2023, reaching an impressive 2.2% during new campaign or collection launches,” Shivani Goel, vice president, marketing, Forever New said.

“The cost of customer acquisition decreased from Rs350 to Rs241, optimizing the brand’s marketing spending. The collaboration with GreenHonchos also led to a remarkable 30X return on ad spend, with 85% of returning customers further boosting sales and loyalty. Notably, Forever New’s contribution to omnichannel sales increased to 34%, and the brand’s average order transaction (AOV) stood at Rs6000,” Goel added.

Conclusion
Forever New’s journey with GreenHonchos is an example of the power of technology-driven strategies in enhancing e-commerce performance and customer experience. By leveraging data-driven insights, customized communications, and a content-to-commerce approach, the brand achieved significant improvements in conversion rates, customer engagement, and return on ad spend. The partnership with GreenHonchos is playing a crucial role in elevating Forever New’s e-commerce success, enabling the brand to flourish online while maintaining a strong offline retail presence.

 

Adapted from the Tech.nxt fireside chat at Phygital Retail Convention (PRC 2023). To view the video, click here.

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