Prior to running our analysis, we needed to better understand the business goals of their mobile app, the new ordering feature, and the coupon campaign. Our client’s ultimate goal was to change how their mobile customers engaged with their app, from passive browsing behavior to more intentional purchasing behavior. Previously, mobile users would use the mobile app mainly to find deals, then redeem those deals in-store. With the coupon campaign, users would only be allowed to redeem coupons through the app.
Our analysis focused on four key questions:
- How did the offers campaign drive new users?
- How did the offers campaign drive user retention?
- How did the offers campaign drive user quality?
- How did the offers campaign change our user mix?
Our team ran a cohort pre- and post-campaign analysis to better understand user behavior and provide immediate, actionable insights on what improvements the client could make to achieve their user adoption and purchase conversion goals. The plan came with a two-pronged approach that was implemented over the course of one month:
- Analyze a control cohort for two weeks to determine retention rates and the user-quality level of retained users.
- Decide on a handful of mobile offers that would be analyzed separately by its cohort. Incentives to redeem coupons on mobile were enhanced to see if revenue would increase and if users would continue that purchasing pattern.
The analysis showed that the campaign did drive new users who purchased through the app and a high percentage of those users continued to purchase through the app after the campaign. However, the new users spent less, and the existing users that preferred scanning offers did not convert to the new ordering feature.
From these insights, our team recommended a new coupon strategy to increase transaction count using offers to attract higher value users that have a higher retention rate. As a result of this analysis and the insights produced, the client pivoted their strategy to focus on mobile transaction count.