Digging into the issue, the team discovered that a large portion of the coupon codes were being found externally. “Old coupon codes are posted on many different online forums and so our customers were using codes from several months ago in an attempt to get a discount. After receiving the error message that the code is invalid, customer analytics in Quantum Metric told us that more than 70% of customers were exiting the site and not returning to complete their purchase” says Associate Vice President of Digital Strategy & Analytics, Ishan Parikh.
Canadian Tire Increases Online Revenue with Quantum Metric
Uncovering of behavioral and technical errors
40% increase in online sales from price sensitive customers
Quantum Metric gives us the ability to make decisions that have an immediate and direct impact on revenue.
Canadian Tire Corporation, Limited is a Canadian retail company with over 1,700 locations.
Sport Chek, a subsidiary of Canadian Tire, is the largest Canadian retailer of sports clothing and equipment, utilizing its online store to serve Canadians across wide interests.
During any given day, the team found that 10-20% of those customers were attempting to use a coupon code and then abandoning their carts as the codes turned out to be invalid or expired. Additionally, Quantum Metric enabled visibility into an aggregated view of the products that were in the carts of this segment of customers.
Since the customers were largely buying older products and the size of the basket was larger than the average user, Canadian Tire wanted to retain these customers by giving them a special price.
“Our interests are aligned with that of the bargain customer and we saw this as an opportunity to reduce our holdings of older inventory whilst increasing online customer satisfaction, all by simply re-activating the coupon codes in our systems,” says Parikh. “On certain non-sale days, we have re-enabled the highest used codes and have seen that the conversion rate of the price sensitive customer has increased by as much as 40%!”
The team continues to use the platform to gain a cross-functional user centric understanding of how their site is performing. “Quantum Metric allows us to look under the hood to understand what is happening digitally, even when things are going well,” says Parikh. “With its real-time data, Quantum Metric gives us the ability to make decisions that have an immediate and direct impact on revenue.