18 February 2019

How lastminute.com increased their average order value by 18% with Optimove

Serving over 10 million customers in 40 different countries annually is a real challenge. When the executives from the Amsterdam-based digital travel company, lastminute.com, wanted to improve its customer marketing, moving from mass, undifferentiated communications to segmented and personalized ones, they prudently looked into ways to empower their marketing team.

With offers that span the scope of travel solutions, including flights, hotels, cruises, tours and special experiences, the company was looking for specific ways to increase the relevance and response rates of their customer email marketing.

Granular target segments

Optimove’s customer modeling, micro-segmentation and campaign automation capabilities enabled lastminute.com’s marketers to identify numerous granular target segments of customers within their database. With this, they were able to deliver highly relevant communications to millions of customers. Using this approach, the company is now regularly communicating with 160 unique customer target groups. More than 100 of these target groups contain fewer than 500 customers.

In addition, lastminute.com has been improving Customer Marketing ROI via Large-Scale Personalization and Automation group – ensuring that many valuable customers are receiving relevant offers and messaging. Furthermore, targeting criteria include lifecycle stage, expressed interest (via recent customer click/view activity), past purchases, historical interactions with prior campaigns and predictive factors (risk of churn, future value and others). 90% of these customer campaigns are fully automated recurring campaigns handled by the Optimove Relationship Marketing Hub.

How is it done? A marketer discovers an interesting target segment, provides one or several offer/message for each one, and then Optimove handles the rest: segmenting customers on a daily basis, separating out control groups to enable accurate uplift measurement, executing the email campaigns, measuring campaign response and automatically optimizing future campaign recurrences for maximum uplift.

Relevant and personal content

Currently, the company is working with Optimove to further increase the relevancy of their customer emails, by incorporating dynamic content within these emails, personalized for each individual customer. A recommendation engine will select the most relevant and personal content – such as flight information, hotel recommendations, car rental info, weather prediction etc. – at the exact moment that each email is opened by each recipient.

Since adopting Optimove, lastminute.com reports the following metrics:

18% increase in order value

35% increase in email open rates

10% increase in email click rates

160 unique target groups

10+ million customers every month

68% of the target groups contain fewer than 500 customers

90% of campaigns are automated recurring campaigns

“Optimove has helped us significantly improve our customer marketing, by automatically personalizing and delivering emails at a very large scale”, said Marco Bardicchia, Marketing CRM Team Leader at lastminute.com. “We are very pleased with the results, and we look forward to working with the Optimove team to go much further still.”

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