dafiti and jetlore present at fashion digital, ny, 2015

The Latin King of Product Content: How Dafiti Grew into a Top Retailer by Providing Fresh, Engaging Content-Driven Experiences

Romulo Zarelli CostacurtaHead of CRM, Dafiti

Eldar Sadikov

CEO, Jetlore

About Dafiti

‣ Latin America’s largest fashion online retailer

‣ >$200M in online sales annually

‣ One of the fastest growing e-commerce

companies in Latin America

‣ Operates in 5 different countries with different

currencies and languages

‣ >100,000 SKUs

‣ Includes now 3 other ventures: Dafiti Sports, Tricae, and Kanui

‣ Accessible by means of all device types

Dafiti CRM program

‣ Email newsletters (along with triggers) are

critical for customer retention and activation

‣ High customer engagement in email has a

dramatic impact on customer LTV

‣ User engagement/activation in email is usually

accomplished through category-specific

promotions and discounts

‣ Heavily relied on segmentation to ensure

featured promotions were relevant to users

‣ But it's not always easy for the customers to

discover products via promotions and price is

not the decision driver for many customers

How can we make email content exciting and fresh everyday?

‣ We realized that product catalog is our best

content!

‣ But hand-picking product is painful and

suboptimal: different users want to see different

products

‣ Putting a carousel of last purchase or cart

abandonment recommendations may not reflect

the current fashion trends or customer’s tastes as

time goes by

‣ How can we create an engaging non-repetitive,

yet personalized product discovery experience?

We added a “product discovery” section to our email

‣ The product collection is algorithmically merchandised at

email open time

‣ Takes into account:

- historical purchases

- browsing behavior

- passive observations (what products were displayed before)

- catalog product performance

- customer context

‣ The collections adaptively iterate as Jetlore learns more about

the customer without the need for constant manual updates

to product selection strategy

Jetlore’s logic ensures a fresh, diverse and relevant collection to explore every day

Felipe has been browsing shorts and summer wear leading

to shorts being featured top left

Felipe has been browsing shorts and summer wear leading

to shorts being featured top left

Jetlore’s logic ensures a fresh, diverse and relevant collection to explore every day

Felipe didn’t click on Thursday’s Email, leading to exploration of casual shoes, a prior purchase

category. Hooded sweatshirts were also

trending.

Jetlore’s logic ensures a fresh, diverse and relevant collection to explore every day

Felipe didn’t click on Thursday’s Email, leading to exploration of casual shoes, a prior purchase

category. Hooded sweatshirts were also

trending.

Felipe browsed sweaters and backpacks Saturday morning before opening the email, leading to their

inclusion that day.

Results:Revenue Per Opened Email

14.6% 51.3%

All Days (including dayswith discounts on all products)

Low/No promotions (one third of all days)

vs

Click to Open Rate (CTOR) Higher and Steadier (11% )

With the Jetlore solution, Dafiti experienced an 11% increase in their click to open rate for promotional newsletters. This increase held steady throughout the measurement period and overall the CTOR experienced much less volatility than the control group.

This steady engagement not only improves short-term sales results, it also increases the long-term health of the email channel and overall customer retention.

“We like to call it ‘remarketing’ because it’s so successful in

activating newsletter subscribers” – Dafiti CRM Team

Click to Open Rate: Higher and Steadier with Jetlore

ControlJetlore

Results: Click-to-open Rate is Higher and Steadier

11% CTOR

How were these numbers and consistency achieved?

1. Jetlore ensures diversity of featured items spanning multiple product categories

vs

This exposes users to a

variety of items and enables

exploration (studying user

behavior to see if they react

to the items)

2. Jetlore keeps product content fresh and constantly evolving

‣ Standard recommendation systems pivot

off the last shopping cart item or last

purchase and repeat the same products.

‣ Jetlore’s engine dynamically adjusts to the

user behavior:

- if the user does not take action, it will iterate to offer new categories and items

- if the user takes an action, it quickly reacts by featuring more from that class of items

3. Jetlore immediately incorporates new items and trends

‣ Typical recommendation systems require a

bootstrapping time to start featuring each

item and, as a result, tend to over-focus on

the top/older items

‣ Jetlore immediately incorporates new

items without any bootstrapping time

‣ Jetlore automatically incorporates fashion

and seasonal trends via real-time

monitoring of product performance

Felipe’s profile

Shorts Summer wear

Backpack

Shoe

Ralph Lauren

Lacoste Casual

Navy BlueStripes

Ecco

Nike

Nike BackpackBlue

New Arrival

What’s next?

Discovery is not limited to products. It applies to promotions as well!

‣ In any given 2-week timeframe, we have 50-100

promotions created by Dafiti’s marketing team

‣ Each promotion is associated with a sub-catalog of

items (50-1000 items in each sub-catalog)

‣ Each user has a unique affinity to buy from a specific

sub-catalog

‣ Jetlore will select for each user the most relevant

promotions given the user profile at that point in time

- ensuring that promotions are not repetitive

Personalized discovery of promotions and products across all channels

Web: Homepage Mobile App: Home ScreenEmail: Newsletters

Thank you! Questions?

Content in the form of promotions and products is your best weapon. Use it to create personalized engaging discovery experiences.