How Dholicladies boosts customer loyalty and lifetime value through qualified traffic

The fashion market is a competitive one, with new trends and styles vying for a space in their savvy audience’s closets. To succeed, fashion retailers need to find customers who will stay loyal to their brand and offerings.

Dholicladies began as an ecommerce site in Korea, expanding to include ten brick-and-mortar stores in Japan. Dholicladies has built a community of fashionistas, through exciting membership benefits that offer discounts and gifts for customers.

With the latest fashions at affordable prices, Dholicladies meets the needs of Japan’s sophisticated and fast-paced market. Thanks to their great success with fashion, Dholicladies has launched a new line in cosmetics and beauty.

How to grow in a competitive market

Focusing on more sustainable growth, Dholicladies wanted to make sure that website visitors would take actions to lead to better customer loyalty as well as greater lifetime value.

The brand was looking to boost subscriptions from new users, allowing them to drive conversions more easily in the future. They considered dynamic ads as a solution, however, Dholicladies’ experience with them in the past wasn’t always successful.

“A while ago, we ran a traffic acquisition campaign with another vendor but the results from the campaign were not something that we could afford in the long run,” says Back Sung Kyu, Manager of the Marketing Planning Division.

With a high cost per click (CPC) and a low conversion rate, Dholicladies did not see the long-term value in the users that were being brought to the site with previous campaigns. “We unfortunately had to stop the campaign with this vendor.”

Boosting customer loyalty by finding qualified traffic

Starting in 2014, Dholicladies began partnering with Criteo to support their growth. Delivering strong performance from the start, they trusted Criteo to help them reach their traffic objectives while staying within their budget.

“Driving upper funnel campaigns with Criteo helps us target new audiences and drive them to our site,” says Back Sung Kyu, “Our in-house team optimizes our landing pages to then incite people to subscribe and convert.”

The key for Dholicladies was to find traffic that wouldn’t just visit, but that would eventually convert. Using Criteo’s lookalike AI, Similar Audiences, they found new potential customers based on the shopping behavior of the best visitors on their site today. The world’s largest intent-driven dataset collected from 1.9B+ cross-device profiles actively browsing the Web, helped them find the people actively looking for products like theirs, to boost their traffic with highly qualified visitors.

The results have been impressive: a competitive cost-per-click combined with a high volume of new visitors.

“The cost per click has been very inexpensive. We haven’t seen any other vendor provide a cost per click that low, while simultaneously bringing in a considerable volume of traffic on the site,” says Back Sung Kyu.

Dholicladies also noticed that the new site visitors had a higher potential to engage with their products and ultimately convert downstream, bringing significant value to the business. During the campaign run, they noticed a +30% growth in revenue compared to the same period in the previous year when they were not running an upper funnel campaign. 

“We were impressed with these results,” says Back Sung Ku. “To get a 30% growth in revenue, we typically need to invest a lot more in advertising spend.”