Lenovo Turns Analytics Into a P&L Driver

Tailored customer experiences help the PC manufacturer nearly triple conversion rates on its website.
Customer Experience

In the highly competitive PC market, companies are under pressure to provide customers with a relevant message at the right time and place before the customer moves on. A company's website is one of the key areas for communicating with consumers and PC manufacturer Lenovo wanted to personalize the experience visitors receive on its website, Lenovo.com.

The project was part of Lenovo's strategy to build out its business intelligence and analytics capabilities, explains Global Business Intelligence Director Ashish Braganza. "Although Lenovo expressed intent in investing in BI and analytics, it didn't have the business case or the ROI to show that analytics was a useful function for the company," Braganza says. "Adobe helped me turn that around."

Braganza and his team used several of the Adobe Marketing Cloud products to accomplish their goal, including Analytics, Target, and Audience Manager.

Beginning last year, the team's first step was to build customer profiles. They pulled in data from Lenovo's SAP CRM system, such as purchase behavior from Best Buy, click stream data from Lenovo.com, and third-party consumer information from data providers like Experian and Neustar.

Lenovo.com's audiences were divided into four clusters: low-value, high-value, researchers, and brand-conscious visitors. Those clusters helped the team determine which optimization and targeting experience visitors would receive on the site.

"For example, we knew which audiences were buying through Best Buy and we mapped that to the third- party providers like Neustar," Braganza explains. "We then used that data to create profile groups of customers that we could accurately pinpoint at a cookie level as high-value customers and showed them products in the premium segment."

An anonymous, first-time visitor for instance, may see a generic display of Lenovo's tablets, PCs, and other products. But if Lenovo.com has additional information about a returning customer, such as previous purchases, household income level, and other demographic data, it could serve up targeted products on its landing page.

The experience was further tailored based on which stage of the customer lifecycle the visitor fell under. If a customer had left a tablet in his or her shopping cart, for example, Lenovo.com might show that customer a deal on tablets or other content that it considered relevant.

The project was successful, according to Braganza. The tailored experiences nearly tripled the conversion rate for high-value customers, or those most likely to buy premium products. The company also saw a 59 percent increase in revenue per visitor.

Lenovo's targeting and optimization program is ongoing and the company continues to fine-tune its abililty to provide customers with relevant products and messages, Braganza says.

"We've shown that analytics can be a P&L driver and that it has a direct impact on the bottom line," he notes. "We showed the ROI through the optimization and targeting work that we did, but the true engine was the analytical engine, which drove the business insights we needed to provide the targeting experience."