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Calvin Klein, celebrated for its iconic designs and bold marketing, wanted to better understand its online shoppers’ behavior to reduce website abandonment and encourage larger purchases. With rising competition in the e-commerce space, the brand sought a more strategic approach to engaging customers – one that avoided blanket discounts, preserving its premium appeal.
To achieve these goals, Calvin Klein partnered with Quin AI to leverage advanced predictive analytics. This collaboration tackled key obstacles in customer engagement, such as reducing abandonment and increasing basket size, by delivering real-time tailored shopping experiences.
Calvin Klein achieved exceptional outcomes, including a 32X ROI, a 2.87X increase in average basket size, and a 15% revenue growth.
Calvin Klein's results
- 32X ROI
- 1.8X increase in conversion rate
- 2.87X increase in average basket size
- 15% boost in incremental revenue share
Challenge #1: Identifying buyers vs. abandoners
Calvin Klein’s primary challenge was identifying which shoppers were ready to make a purchase and which were likely to abandon their carts.
Without differentiating these groups, the fashion house relied on a one-size-fits-all approach, offering promotions to all visitors. While intended to reduce drop-offs and drive conversions, this strategy often worked against them, eroding profit margins by extending discounts to customers prepared to purchase without additional incentives.
How Quin AI helped
Calvin Klein partnered with Quin AI to implement a data-driven strategy aimed at boosting conversions and increasing revenue. Using Quin AI’s advanced gen-AI technology, the fashion house analyzed their customer behavior in real-time to identify visitors most likely to abandon their carts.
With these insights, Calvin Klein delivered tailored incentives to high-probability abandoners at precisely the right moment, motivating them to complete their purchases and reducing the need for broad, profit-draining discounts.
The bottom line: By leveraging real-time data and targeted customer experiences, Calvin Klein successfully fine-tuned its online shopping journey, resulting in a 15% increase in incremental revenue.
Challenge #2: Balancing discounts and profit margins
Calvin Klein faced strict limitations on its discounting strategy throughout the year, restricting promotions to only products with high stock. As these items sold out, the pool of discounted products steadily declined, leaving fewer incentives for price-sensitive shoppers.
Without the option of blanket discounts, Calvin Klein had to find a way to boost conversions while protecting their profit margins.
How Quin AI helped
Quin AI’s sophisticated algorithm analyzed shopper behavior in real-time, uncovering a key insight: hesitation around high-value purchases was a major reason customers abandoned Calvin Klein’s website. To address this, the brand developed a targeted engagement strategy focused on reducing friction during the shopping journey.
A key element of this strategy was Quin AI’s ability to identify price-sensitive customers in real-time and offer them the option to split large purchases into manageable installments. By presenting this payment flexibility at the right moments in the shopping journey, Quin AI helped Calvin Klein address shopper concerns and make transactions more accessible.
This data-driven approach led to impressive results, boosting conversion rates by 80%. It’s a clear example of how using real-time shopper insights to create tailored solutions can make a big difference.
Challenge #3: Finding creative ways to boost cart value
Calvin Klein's third and final challenge was increasing their average cart value while safeguarding profit margins. As mentioned above, blanket discounts weren’t an option, as they risked eroding profitability. Instead, they needed to find alternative ways to motivate customers to spend more.
Adding to the complexity, Calvin Klein faced difficulties reaching untapped audiences, such as potential buyers who had yet to start shopping.
Without a clear strategy to engage these shoppers, capturing their attention or understanding their purchasing motivations was difficult. This made it harder to offer tailored incentives that could effectively encourage larger purchases. As a result, opportunities for upselling were missed, and achieving higher-value transactions remained a substantial hurdle.
How Quin AI helped
Calvin Klein leveraged Quin AI's algorithm to identify two key audiences: customers purchasing items priced between £0 and £50 and a broader group displaying purchase intent through their browsing behavior.
For the first group, Calvin Klein highlighted an existing compelling incentive – free delivery on orders over £50 – to encourage customers to add more items to their carts. For the second group, the brand highlighted the same offer early in their shopping journey, engaging these potential buyers and guiding them toward completing larger purchases.
This focused strategy delivered fantastic results, encouraging smaller spenders to add more to their baskets and attracting new shoppers who might not have purchased otherwise. By targeting these audiences with personalized incentives, Calvin Klein achieved a remarkable 187% increase in their average basket size.
What’s next for Quin AI and Calvin Klein’s partnership?
Calvin Klein’s partnership with Quin AI has evolved from addressing specific obstacles like reducing cart abandonment and increasing average basket size to impacting their wider e-commerce strategy with data-driven precision.
Together, we’ve achieved:
- 32X ROI, demonstrating exceptional efficiency in leveraging Quin AI's predictive insights
- 1.8X increase in conversion rate, driven by payment flexibility strategies.
- 2.87X increase in average basket size through targeted incentives like free delivery reminders.
- 15% incremental revenue growth, a testament to the power of hyper-personalized customer engagement.
Calvin Klein’s partnership with Quin AI is still going strong, helping the brand create a more personalized and seamless online shopping experience and setting the stage for Calvin Klein to refine its strategies and find new ways to grow.
