How Kolon Mall Boosted User Retention with Data-Driven Audience Experimentation

Overview

• Kolon Mall wanted to enhance engagement and conversion rates by refining their marketing strategies and improving audience segmentation.
• The main challenge was creating scalable lookalike audiences from VIP segments, which hindered their ability to expand their reach to similar high-value prospects.
• Using AppsFlyer’s Audiences tool, Kolon Mall was able to improve their retention rate by over 15%, within a shorter period than previous campaigns. They also reduced dormant user engagement costs by 20%, enhancing the efficiency of their marketing efforts.

Background

Kolon Mall, a leading fashion eCommerce platform in South Korea, has a rich heritage rooted in the Kolon Group, renowned for its innovative and sustainable fashion. With a curated selection of premium brands, Kolon Mall stands out by offering a personalized shopping experience through its unique OLO Club (Kolon Mall Online VIP program) which categorizes customers based on purchasing behaviors.

The company’s business model emphasizes customer loyalty and lifetime value, prioritizing high-retention audiences. As Kolon Mall evolves its brand identity to reach a wider audience, it remains dedicated to providing relevant features and personalized experiences.

Challenge

Kolon Mall faced challenges in effectively identifying and engaging high-value customers to drive sustainable growth.

Operating in the highly competitive fashion eCommerce landscape, our goal was to engage users who value Kolon Mall’s curated collections and diverse product offerings, rather than those drawn to a single product. However, identifying an efficient and effective strategy to achieve this was a significant challenge.

Jihye Ha, Performance Marketing Manager at Kolon Mall

Kolon Mall’s top-tier Superstar, Muse group members demonstrated strong loyalty, offering a model for acquiring similar high-value users. However, the company lacked the tools to create scalable, lookalike audiences based on these VIP segments, limiting their reach to similar high-value prospects.

We aimed to engage more users with behaviors like those in our Superstar, Muse groups, but needed greater flexibility to build and expand these audiences

Jihye Ha, Performance Marketing Manager at Kolon Mall

At the same time, the team wanted to ensure seamless integration across multiple partner platforms, allowing them to expand campaigns easily and effectively.

Another challenge was reactivating long-dormant users and bringing them back to the renewed Kolon Mall. The team needed to segment the appropriate audiences and implement a solution that could quickly integrate with various partner platforms for efficient testing.

Reactivating long-dormant users was a major challenge, requiring targeted strategies to reconnect them with the brand, highlight the renewed Kolon Mall experience, and efficiently execute campaigns across platforms while managing costs

Jihye Ha, Performance Marketing Manager at Kolon Mall

Solution

In search of better audience segmentation and user engagement strategies, Kolon Mall used AppsFlyer Audiences to reach new customers similar to the top tier of the VIP program – loyal customers with high purchasing power. One of the key reasons for selecting AppsFlyer Audiences was its seamless integration with Kolon Mall’s OLO Club audience and platforms like Meta, enabling the team to enhance campaigns without overhauling their existing infrastructure.

The process started with in-depth consultations and a workshop with AppsFlyer’s Customer Success and Solutions Architect teams. AppsFlyer showcased how Audiences could help segment and grow Kolon Mall’s high-value users. By transmitting specific in-app event parameters, such as membership status, they created seed audiences of top users.

Kolon Mall then used AppsFlyer’s Audiences feature to expand their reach using Meta’s lookalike audience capabilities, significantly scaling their campaigns and overcoming previous limitations of their small seed audience.

Once the audience segmentation was set, the AppsFlyer team helped Kolon Mall integrate the solution across multiple channels. AppsFlyer’s ability to work with a variety of media platforms meant that Kolon Mall could deploy their segmented audiences, testing campaigns across different channels.

Kolon Mall’s marketing and creative teams worked closely together, using insights from AppsFlyer Audiences to shape their campaign strategies. By analyzing cross-purchasing behaviors within the membership tiers, they crafted tailored creatives (see below) specifically designed for high-value lookalike audiences. This approach not only boosted user engagement and conversion rates but also kept the cost per install (CPI) on par with generic campaigns.

AppsFlyer’s customer support was a crucial part of the success of our marketing campaign. The CSM team provided ongoing support, conducting periodic reviews of campaign performance and helping us refine our strategies based on those insights. This continuous collaboration ensured we get the most out of them.

Jihye Ha, Performance Marketing Manager, Kolon Mall

Results

The implementation of AppsFlyer’s Audiences took just a few weeks, and the results were quick to follow. Within a short time, Kolon Mall saw an improvement in retention rates of more than 15% for users acquired through the lookalike audience campaigns. Moreover, they were able to reduce the cost of reactivating dormant users by 20% compared to standard campaigns, making their marketing efforts not only more effective but also more efficient.

AppsFlyer’s segmentation capabilities allowed us to pinpoint high-value users and expand effectively, verifying various hypotheses

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