How Cha Tzu Tang Boosts ROAS Growth by 80% with Personalization

About Cha Tzu Tang 

Since its establishment nineteen years ago, Cha Tzu Tang has made "Promoting a wholesome lifestyle that honors the beauty of the land" as its brand value. With inspiration from Taiwan's very own Camellia Oil culture, Cha Tzu Tang takes on the craftsmanship and spirit of the masters, and joined hands with local farmers to revolutionize the cultivation, extraction, and blending process of Camellia Oil.  Through a five-year growth cycle, Cha Tzu Tang looks to transform the harvesting of Camellia seeds into a series of skincare and cleansing products under people-centric categories of "Oil, Hair, Body, Home, and Gifts". At its core, Cha Tzu Tang is centered on reviving and inheriting Taiwan's Camellia Oil culture. It is believed that not only does this foster local innovation and creativity, it is also able to add a touch of freshness to the lives of locals with the natural pureness of Camellia Oil. 

From product development, raw material selection to packaging design, every product is enriched with Taiwan's distinctive local elements. Despite strong stance on local innovation and creativity, Cha Tzu Tang has never swayed from its initial aspiration - which is to introduce the natural beauty and goodness of Taiwan's forests and agriculture into the market, and beyond international borders. 

Maximizing Customer Lifetime Value through Deeper Understanding and Customer Engagement 

The rising costs of advertisements has caused Cha Tzu Tang to experience challenges in acquiring customers. This prompted the team to consider allocating their resources for a more inclusive and diversified marketing channel. As the brand's customer base continues to grow, the team has also discovered the importance of building meaningful relationships and engagements with customers. In the process of implementing these strategies, Cha Tzu Tang came across the below challenges: 

Fragmented Customer Data Limiting the Effectiveness in Marketing Campaigns

Cha Tzu Tang found their customer data scattered across multiple marketing platforms and sales channels. This has made it challenging for the team to have a holistic understanding and clear view of their customers' behaviors and preferences. This gap imposes limitations for Cha Tzu Tang to communicate effectively with their customers. For example, the marketing team can only rely on the use of "bulk sending EDM" for content creation and delivery, restricting engagement  thus causing customer conversion rates to stay stagnant. In the selection of delivery channels, the team is also refrained to higher-cost channels such as SMS due to the inability to articulate personalized communication.  

Data Disconnection Across Platforms as a Challenge to Grasp Conversion Rates and Effectiveness

Cha Tzu Tang operates their business across two platforms - online e-commerce and offline physical stores. For the record, the data between both online and offline platforms could not be effectively bridged, making it challenging to connect gathered information on customers for a complete understanding. Besides, Cha Tzu Tang relies on product sampling in different settings to increase brand awareness, such as cooperating with hotels on sampling for toiletries and malls on sampling for hand sanitizers in hopes to attract customers and drive sales. However, due to the data gap that lies between both their online and offline stores, it is difficult for Cha Tzu Tang to accurately measure conversion rates across different settings. 

Unifying Data with a Customer Data Platform, Implementing Marketing Automation to Increase Overall Efficiency

Through recognizing the challenges above, Cha Tzu Tang decided to incorporate OmniSegment CDP - a customer data platform highly recommended by industry experts in assisting them with data integration, and further ensuring campaign message delivery accuracy. Additionally, Cha Tzu Tang aims to merge online and offline data and processes with the OmniSegment CDP, breaking down barriers between both online and offline platforms to deliver optimal customer experiences. 

Integrating Data Across Channels for Marketing Automation and Personalization 

OmniSegment CDP was able to integrate customer data and order history across both online and offline channels, providing Cha Tzu Tang with a unified view of customer's behavior and purchase history, overlooking customer journeys across various touch points all through a single data platform. With integrated customer data, Cha Tzu Tang could automatically segment markets, easily identifying customer groups relevant to their campaign objectives. 

Besides, OmniSegment CDP can also set up scenario-based marketing automation. Upon detecting certain conditions in a customer's profile, such as "1 day cart abandonment", "browsing of specific product series", "birthday month", OmniSegment CDP will automatically deliver scenario-based message reminder to customers, ensuring accurate communication at the same time allowing Cha Tzu Tang to save up on resources with automation. For example, in the execution of the brand's "Birthday Month Special" Campaign, the team could automate birthday wishes and promotions to their customers at the beginning of their respective birthday month through the OmniSegment CDP, and by the end of the month, automate "abandoned cart" reminders to customers who have not proceeded with their transaction, thus increasing the overall conversion rate of the campaign. With AI marketing automaton, Cha Tzu Tang was able to effectively streamline manual processes that consumed great amount of manpower, improving the team's efficiency and greatly increased their monthly revenue. 

Driving Online and Offline Revenue Growth: The OMO Experience

Integrating online and offline membership data has empowered Cha Tzu Tang to excel in cross-channel customer engagement. For instance, if a specific store underperforms, the team can analyze online order data to identify customers who pick up at nearby convenience stores or have delivery addresses close to the store. They can then incentivize these customers to shop in-store. Once there, in-store staff can encourage members to connect via LINE, boosting loyalty. With this, future marketing campaigns can be conducted through LINE, email, and SMS, directing customers to shop online or in-store. The team can also navigate website pop-ups, driven by UTM parameters, to offer targeted discount codes, enhancing conversions.

The Results

With the OmniSegment CDP, Cha Tzu Tang was able to deliver a personalized approach, identifying precise audience segments from integrated data for each marketing campaign. This strategy led to an impressive average ROAS of over 10 for their promotional activities.

Furthermore, OmniSegment CDP was able to automate trigger marketing based on data collected on customer behaviors. These automated campaigns achieved an average ROAS of 54, with the "abandoned cart" scenario reaching a remarkable ROAS of 507 and an 80% growth rate. This highlights the significance of automation and personalization in marketing.