Increasing Revenue through Personalized Customer Engagement: A Case Study on Cake

Cake, a Shopify brand with a mission to make sex more fun and destigmatize sexual health, faced a significant challenge in understanding their customers' preferences and needs. The brand's Director of Marketing, Will Allen, expressed the need to gain a better understanding of their customers' preferences in the bedroom. Like many marketers, Will wanted to know who was interacting with their website, their likes and dislikes, so that Cake could offer products that are genuinely desired. Given the personal nature of sex, it was crucial for Cake to be as specific as possible in their product suggestions to enhance their customers' sex lives.

Cake's customers are individuals who interact with their website, seeking products to enhance their sex lives. These customers value fun and are open to embracing and enjoying the intimate areas of their lives. They are willing to share personal information, such as their preferences and dislikes, to receive personalized product recommendations. The customers' willingness to engage with Cake's quiz indicates a level of trust and openness, as well as a desire for products that meet their specific needs and preferences. The high completion and conversion rates of the quiz suggest that Cake's customers appreciate the personalized approach and are responsive to the brand's efforts to understand and cater to their needs.

Cake's solution to their challenge was the implementation of a product recommendation quiz, leveraging zero-party data. Zero-party data, which includes customer-volunteered information such as preferences, dislikes, demographics, name, and budget, is clean and highly valuable. Cake's quiz served five main purposes: understanding their customers and their wants, building out customer segmentation based on responses, providing customized product recommendations, capturing more emails for nurturing, and informing the broader business strategy, particularly the product roadmap. The quiz was designed to be fun and playful, helping shoppers relax and engage with a potentially embarrassing topic. The quiz had an impressive 84% completion rate and a 7.3% conversion rate, significantly higher than the average product page conversion rate of 2-3%.

• The implementation of the quiz not only increased Cake's revenue but also significantly enhanced their understanding of their customers. The collection of zero-party data allowed Cake to build out customer segmentation and provide personalized product recommendations, aligning their offerings more closely with customer needs and preferences. The quiz also served as a tool for capturing more emails, expanding Cake's customer base and providing opportunities for further customer engagement and nurturing. Furthermore, the insights gained from the quiz informed Cake's broader business strategy, particularly their product roadmap, enabling them to make strategic decisions based on customer data. The high completion and conversion rates of the quiz also indicate a positive customer response, suggesting that the quiz has helped to enhance the customer experience and build stronger customer relationships.

• Cake's revenue increased by 10% in less than three months (mid-January 2022- March 2022) due to the implementation of the quiz.

• The quiz collected 147,300 zero-party data points, providing valuable insights into customer preferences.

• The quiz brought in an additional $50,000 in revenue.