Chal-Tec creates specialized experiences in a marketplace world
among the DJ lover audience in comparison to the rest of the website traffic
Introduction
Boasting over €100 Million in annual revenue from the online activity of its 45 retail brands offering products from dozens of categories, Berlin-based giant, Chal-Tec, started as a single store called Electronic-Star, specializing solely in DJ equipment. But in the age of Amazon, niche stores like this found themselves expanding into multi-category online malls in order to survive – a move that increased revenue and online conversions, but left brand loyalists feeling confused about their go-to place for all things Audio / Visual.
Reeling from the loss of customers’ trust, Chal-Tec, resorted to various strategies including lowering prices, but to no avail.
At last, Chal-Tec turned to personalization, leveraging Dynamic Yield’s Multi-Touch Campaign solution to create a specialized niche-like experience for DJ lovers, camouflaging the rest of their website, ultimately increasing the conversion rate by 27.6%!
“This company makes me happy!”
Philipp Schröder, CRO Manager & Developer
“I worked with several personalization tools, but Dynamic Yield really fits the needs of huge online shops. We chose Dynamic Yield because we have forty shops to control, and as shop managers we have to be able to transfer one successful experience to the other, a capability that only Dynamic Yield offers. And now that Dynamic Yield released Multi-Touch Campaigns, they offer me everything I need.”
The Challenge
With the rise of Amazon, Chal-Tec’s first independent shop, Electronic-Star, decided to expand its single-category store into a multi-category mall, selling products from a wide variety of categories, including household appliances, sporting goods, garden equipment, kitchenware, and more. Although this move opened up the store’s gates to the general public, alleviating the Amazon threat, Electronic-Star had lost the faith of its core loyalists, who no longer counted on the brand’s expertise regarding all things DJ equipment. After several attempts to win back their core audience, such as increasing their advertising spend and lowering prices, Electronic-Star sought after the right personalization technology, requiring a system that could:
- Identify customers primarily interested in DJing with high-precision
- Provide a consistent personalized experience across the entire website
- Drive revenue uplift by automatically identifying the ideal experience for these visitors
Execution
Depicted below, find every step of the website as experienced by the general population vs. the DJ-Lovers segment:
HOMEPAGE
All Visitors
VS.
DJ Lovers
LOGO
All Visitors
VS.
DJ Lovers
NAVIGATION MENU
VS.
MOBILE NAVIGATION
All Visitors
VS.
DJ Lovers
Chal-Tec created a personalized experience for every one of Electronic-Star’s sub-categories
Due to the incredible success of the DJ lovers experience, Chal-Tec created a camouflaged version of the website for every one of its audiences based on their preferred category, as depicted below.
HOUSEHOLD EXPERIENCE:
GARDEN & OUTDOOR:
SPORTS & FITNESS:
