How Electrolux went direct-to-customer

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How Electrolux cleaned up its marketing and earned 3x new conversions and 2x existing conversions

Electrolux—the company whose very name is synonymous with cleaning—had a dirty little secret. After years of selling its products through a global network of channel partners, Electrolux recognized it didn’t have personal relationships with the very people who used their products in their homes.

Challenge:

Electrolux needed to establish a first-party relationship with its customers.

They embarked upon that journey, yet soon after, COVID-19 hit and forced retail stores around the world to temporarily close their doors. To stay on track, Electrolux had to speed up the process of building those relationships through a direct-to-consumer model.

Electrolux was founded more than 100 years ago in Sweden and soon became a household name through its brand of electric vacuum cleaners. Today, Electrolux manufactures a wide range of home appliances in three distinct categories: Taste, Care, and Well-Being. Examples of popular products in those categories include washing machines, dishwashers, and air conditioners, respectively.

Over the years, like many long-standing companies, Electrolux found itself saddled with siloed data and point solutions that were spread throughout their organization in APAC & MEA. Their infrastructure worked to keep the business running as usual, but when the unusual happened—a global pandemic that quickly spread across the world—the company realized it needed to accelerate their efforts to get closer to consumers ever than before with the help of technology.

After years of building their business on a highly successful channel-to-consumer model, Electrolux had to expand their go-to-market to include direct to consumer.

Andy Chang, Marketing Technology Director APAC & MEA, remembers the initial reaction from his marketing colleagues in Asia Pacific. “They wanted to go very quick,” he recalled, “to test things and do things immediately, but our data infrastructure just didn’t allow us to do that. They couldn’t wait to get closer to the consumer as soon as possible.”

“They wanted to go very quick, to test things and do things immediately, but our data infrastructure just didn’t allow us to do that.”

Solution:

Choose a best of breed customer data platform (CDP), Lytics, that would work with their current infrastructure while allowing them to confidently update their MarTech stack as their needs changed.

In Asia Pacific, Electrolux partners with Niteco for digital marketing and e-commerce initiatives. Together, Niteco and Electrolux selected the Lytics CDP platform to create personalized customer experiences across their digital channels. Within weeks, Electrolux and Niteco had collected enough customer behavioral data through the Lytics platform to clearly identify product and content affinities and make real-time recommendations to customers who visited their website.

Electrolux began an aggressive campaign to transform their online experiences from general to highly personalized, but the value of Lytics didn’t stop at the CDP. Niteco and Electrolux also combined Lytics data with Iterable’s email marketing software to create automated, personalized email campaigns. Electrolux was also able to get more value from their Facebook ad spend by retargeting customers with the behavioral data gleaned from Lytics.

 

Results:

In the months that followed, Electrolux direct-to-consumer efforts powered by Lytics yielded impressive results:

– With Lytics, Electrolux and Niteco were able to assign content tags to images and other digital content on the website, enabling them to tailor their website’s visual appearance for each individual customer.

– Personalized popup screens that showcased specific products based on a customer’s previous behavior nearly tripled the number of web conversions for new users and more than doubled the number of web conversions for existing users.

– Electrolux introduced its own You May Also Like… section of personalized product recommendations on its e-commerce site, which boosted web conversions by an additional 37.5 percent.

– Personalized email campaigns yielded eye- and email-opening results: an average email open rate of 26 percent and an email clickthrough rate of 22 percent.

Instead of treating customers on Facebook as unknown, Electrolux could now direct Facebook users directly to a personalized page on their website for a more connected experience. Retargeting was something that Electrolux had talked about before, but had never pursued because it was perceived as difficult to do.

Those difficulties, according to Andy, disappeared with Lytics. “We were able to start retargeting right out of the box,” Andy explains. “That’s the strength of Lytics. Before Lytics, we didn’t have technology that was flexible enough to do this.”

“We were able to start retargeting right out of the box. That’s the strength of Lytics. Before Lytics, we didn’t have technology that was flexible enough to do this.”

Electrolux has learned a lot in the last several months, both about its customers and how to deliver highly personalized digital experiences. At some point, of course, stores will re-open and sales will flow through their global channel partners once more. But the lessons learned with Lytics will have a lasting impact on the way that Electrolux sees its customers and how it measures success for its digital marketing campaigns.

Customer data can’t exist in a vacuum, even for Electrolux. Personalized, omnichannel experiences depend upon the behavioral and affinity-based data that flow through the customer journey. Using the robust data science that is the foundation of Lytics, Electrolux is creating the kind of customer relationships that, like its products, will last for a very long time.