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Case Study

Build.com Case Study

Summary:

• See 10x order attribution with customer matchback. By doing a customer matchback analysis, the Retailer found that for each order made directly from the CoffeeTable App, CoffeeTable drove more than 10 other transactions from shoppers who purchased directly on the Retailer’s website after browsing its catalogs on CoffeeTable.

• Re-engage and provide additional value to your highest value customers: CoffeeTable already attracts many of the Retailer’s highest value customers. Build.com’s customers that have browsed its catalogs on CoffeeTable average 26% higher revenue per customer versus all shared shoppers. Partnering with CoffeeTable ensures that the Retailer has a presence where its most valuable shoppers are spending time.

• Prospect a high value audience: CoffeeTable is a highly effective prospecting tool for the Retailer to acquire high-value customers that have a higher average order value (AOV) and maintaining exposure to new shoppers while they are in the consideration phase leads to even larger gains in AOV and orders per shopper.

The Retailer: Build.com (the “Retailer”) is a leading home improvement online retailer with annual sales over $400M. Build.com carries a wide selection of the leading home improvement manufacturers like American Standard, Hansgrohe, Kichler, Progress and Schlage.

The Opportunity:

Build.com is an excellent solution for shoppers that are in the process of a home improvement project and are researching various products, comparing prices and purchasing. Build.com was interested in testing the ability of the catalog and tablet e-commerce experience to drive customer brand awareness and inspire shoppers at an earlier stage in the shopping funnel.

The Solution:

Build.com approached CoffeeTable, the top-rated catalog shopping iPad App, about creating a new home improvement category featuring Build.com catalogs on CoffeeTable. They wanted to test how a well-merchandised home improvement catalog might engage shoppers and increase order size and frequency, two levers that are difficult to impact with traditional digital marketing tools. Build.com was also interested in reaching tablet shoppers. Tablet shoppers shop during off-peak hours for traditional e-commerce retailers (nights and weekends) and tend to have higher average incomes. CoffeeTable launched the Home Improvement category in June of 2012, which now features 16 Build.com-sponsored catalogs.

Results

The Retailer did a matchback analysis with CoffeeTable’s shopper database in order to analyze CoffeeTable’s influence on Build.com shoppers. A significant percentage of the shared shoppers appear to be an organically overlapping audience, rather than the result of any co-marketing efforts by the Retailer. Only 9% of the shared shoppers have ever browsed Build.com’s catalogs on CoffeeTable. Almost 70% of the shoppers that viewed Build.com catalogs on CoffeeTable were Build.com prospects that made a first-time purchase on Build.com after shopping Build.com catalogs on CoffeeTable.

The Retailer found that for every transaction CoffeeTable sent Build.com directly, there were at least ten (10) additional transactions happening outside of the App that were attributable to shopping on CoffeeTable. For every direct transaction, ten or more shoppers used CoffeeTable to discover and consider products and then went to the Retailer’s website to make a purchase at a later date. The Retailer attributed to CoffeeTable any purchases made by a CoffeeTable shopper on Build.com within 60 days of browsing Build.com’s CoffeeTable catalog.

The Retailer also found that CoffeeTable presented an opportunity to re-engage some of its highest value customers that are already shopping other leading retailers on CoffeeTable.

• The Retailer’s customers that shop on CoffeeTable are higher value customers, with 26% higher revenue per customer and 33% more orders per customer.

• There is a significant portion of Build and CoffeeTable’s shared shopper base that have never browsed the Retailer’s catalogs on CoffeeTable, leaving a valuable opportunity for re-engagement of those shoppers, and ultimately conversion to higher-value customers.

Finally, the Retailer found CoffeeTable to be a highly effective prospecting tool for the Retailer to acquire high-value customers. Shoppers that browsed the Retailer’s catalogs on CoffeeTable prior to making a purchase on Build.com (“CoffeeTable Influenced Shoppers”) had a higher AOV, as compared to shared shoppers that did not use CoffeeTable as a part of their buying process on Build.com. Although shoppers became more valuable after only one exposure to Build.com’s catalog on CoffeeTable, multiple visits to Build.com’s catalogs on CoffeeTable resulted in incrementally higher AOV.

• CoffeeTable Influenced Shoppers have a 9% higher AOV as compared to all shared shoppers. CoffeeTable Influenced Shoppers that purchased directly through CoffeeTable also returned to Build.com to make additional purchases and had 14% more orders per customer as compared to all shared shoppers.

• Within the segment of CoffeeTable Influenced Shoppers, those that browsed the Retailer’s catalogs more than one time during the buying process were even higher-value shoppers versus CoffeeTable Influenced Shoppers that only browsed the Retailer’s catalogs once prior to purchase, with:

o 42% higher AOV than those that only visited once o 23% more orders per shopper

Conclusion:

Build.com’s partnership with CoffeeTable allowed the Retailer to acquire new, highly valuable customers, and to re-engage some of its most valuable existing customers. CoffeeTable also gave the Retailer the ability to reach a different and valued segment of shoppers at an earlier stage in the shopping funnel, during the discovery and consideration stages, rather than the later product and price comparison stage. CoffeeTable complemented the Retailer’s traditional e-commerce efforts by giving shoppers the ability to consider home improvement products in a beautifully merchandised way and get comfortable enough with the brands and products to ultimately make a higher-value and more frequent purchases.

About CoffeeTable

CoffeeTable is a free catalog shopping application for the iPad that aggregates leading retailers like Neiman Marcus, Crate&Barrel, Lands’ End, L.L. Bean, Macy’s and more into single application for a premium browsing, shopping and purchasing experience.

• CoffeeTable offers its retailers unparalleled analytics through a real-time dashboard, for instant feedback on shopper engagement.

• CoffeeTable is a full-service platform, including a dedicated CoffeeTable brand manager who does all of the legwork to digitize your catalogs and coordinate marketing efforts.