Churn Prevention from Multi-Channel to Cross-Channel Execution

Challenge

HelloFresh is a company with a strong focus on establishing long-term relationships with high-value customers. In their particular case, approaching clients in an uncoordinated manner and over-contacting them had to be avoided at all costs. Uncoordinated multi-channel marketing practices carry the risk of causing churn, missed re-engagement goals and, ultimately, negative brand recognition.

An orchestrated cross-channel approach minimized these risks. Additionally, it helped activate leads and increased the conversion rate as a result. HelloFresh uses a variety of channels and tools to engage with their customers. Previously, keeping all of these channels aligned involved a great deal of manual work and required IT support. Also, in terms of segmentation and personalizing marketing messages, HelloFresh’s CRM managers were not able to work autonomously, as the required data was neither readily available nor actionable.

Since the company wanted to retain their existing setup to continue using the best, most highly specialized tool for each channel, integrated marketing clouds were not an option. Neither was building a custom solution from scratch, which would have involved high costs and vast resources. To achieve their goal of sending the right content at the right time via the right channel while hanging on to their existing infrastructure, HelloFresh decided to use CrossEngage.

Solution

Everybody is different when it comes to food. Therefore, HelloFresh set out to build comprehensive customer profiles within the CrossEngage platform. A complex picture of food preferences and individual behavior needed to be modeled for each customer. The CrossEngage platform makes the collected data accessible and actionable for the marketer by means of real-time 360° customer profiles – requiring no additional IT support. This allows marketers to autonomously segment customers, automate campaigns, and personalize messages automatically, which are then delivered through the right channel.

CrossEngage easily integrates with all of the existing tools so that the existing marketing infrastructure does not need to be replaced; the existing infrastructure communicates with CrossEngage via dedicated APIs.

Since comprehensive sets of customer and behavioral data became available through the newly adopted platform, it was now possible to target each customer based on individual preferences and their respective stage within their customer lifecycle. By aligning communication across channels, HelloFresh was able to increase their customer engagement significantly.

The company uses Facebook retargeting via custom audiences, Sendgrid for emails, Appboy for mobile push, Twilio for SMS, and has even integrated personalized offline letters using optilyz (Lob in the US). Despite the number of tools, and channels employed, consistent messaging across all channels became a manageable task with CrossEngage. Since one of CrossEngage’s core ideas is to always enable the integration of channel-specific “best-of-breed” solutions, HelloFresh will even remain flexible in the future when new channels and tools emerge and need to be integrated

“CrossEngage enables us to leverage all our customer data and use best-of-breed technology for high-performance cross-channel marketing. optilyz as the best-of-breed tool for European direct mail automation lets us run highly segmented campaigns with minimal setup effort. Combined together they allow us to achieve granular targeting as well as synchronizing Direct Mail with other online channels seamlessly to maximize ROI.”

Florian Bonnet Head of CRM, HelloFresh Global

Success Factors

Audience Segmentation

CrossEngage’s 360° customer profiles allow marketers to build segments based on customer data as well as real-time behavioral and response data. This type of profiling ensures that the right audience is targeted at the right time. Campaigns were calibrated, meeting the customers’ ever-changing needs and expectations.

Cross-Channel Execution

HelloFresh managed to successfully connect all existing tools and integrate their complex data structure within weeks rather than months. Integrating best-of-breed technology with CrossEngage enables them to coordinate marketing efforts while targeting clients through their preferred channel using the best tool for the job.

Results

Brand Benefits

Since CrossEngage enabled HelloFresh to personalize their cross-channel communication, the latter has been able to increase their average CLV and grow their customer base with less marketing effort. This has ultimately led to increased brand awareness and recognition.

Customer Benefits

Only receiving the right message through their preferred channel, customers were no longer harassed by impersonal messages and unsuitable offers. CrossEngage’s cross-channel frequency-capping capabilities guaranteed that only a moderate number of messages be sent to each customer. By using personal data, HelloFresh created customized recipes and special offers, treating every customer like a special individual, instead of just one of a great many.

About HelloFresh

HelloFresh is a leading premium meal-kit subscription provider and successfully operates globally. The company serves more than 850,000 customers in nine countries across three continents. 2000 employees take care of 9m meals being sent out every month.