AUDIOGON CASE STUDY

WHY ZAIUS WAS THE SOUND CHOICE FOR AUDIOGON

The Company

As the largest, most respected high-end audio community in the industry, Audiogon provides a marketplace for people to buy, sell, trade, and discuss high-end audio. Built for audiophiles by audiophiles, the company has been a mainstay of the audio world since the late ‘90s, providing a one-stop, comprehensive resource for hifi enthusiasts.

The Challenge

Prior to using Zaius, Audiogon’s email strategy consisted of a single weekly newsletter. Because their previous technology lacked any intelligence around customer browsing or purchase history, they weren’t able to segment users or automate campaigns based on behavior. Instead, their marketing team relied on IT for customer data, as CRM and other internal systems were siloed from marketing automation platforms.

“If I wanted a segment of customers that met specific qualifications, like ‘spent $2,000 or more with our brand in a month,’ I’d have to ask a developer or database manager to run an SQL query for me,” said Justin Roberson, Director of Digital Marketing at Audiogon. “The data would come back a week or two later as a .csv file that I would have to manually upload to our email platform. It was always outdated and the process was inefficient—and this cycle would continue every month.”

The Solution

Now, with Zaius, Audiogon’s customer data and campaign execution are combined into a single system, allowing the marketing team to be completely self-sufficient. “We’re not dependent on other people’s schedules, and we can easily obtain and act on customer data on our own,” Roberson explained.

Thanks to Zaius’ customer lifecycle dashboard, the team at Audiogon can better understand performance indicators at a glance. Instead of building dashboards like he’s had to in the past, now Roberson can easily identify increases in at-risk and churned customers month-over-month. Plus, he no longer has to manually piece data together from multiple platforms to understand customer health.

“I love being able to look up a user’s lifetime value and purchase history within the same platform as email,” Roberson said. “I can compare the performance of different groups of users across campaigns and sources to measure improvements. For example, I can see the lifetime value of users that visit our forum more than 10 times in two months to determine whether forum engagement increases LTV. Other platforms simply don’t offer these insights.”

According to Roberson, one of the biggest benefits of using Zaius is the ability to easily act on these insights. “Zaius drastically reduces the time from opportunity discovery to campaign execution,” he said. “I can uncover something about a specific segment, and I can immediately target that audience with an email. It saves me hours of time.”

Ultimately, 70 percent of Audiogon’s revenue comes from dealers, while 30 percent comes from private users. Since new dealers generate recurring revenue and these leads are much more lucrative, it’s important they uncover them early and subsequently coach dealers on how to best use the site to be successful.

With their previous technology, there was no way for the Audiogon team to identify the behavior that qualifies a dealer lead. But with Zaius, they can uncover these leads easily by dynamically segmenting on specific dealer behaviors—defined as new user registration in the last 10 weeks and seven or more listings in that timeframe. They promote the Audiogon Dealer Program to these customers by sending targeted emails and corresponding Facebook and Google ads with steep discounts. From there, the sales team can see which dealers redeem these coupons, then follow up accordingly.

“Delivering this consistent, cross-channel experience has been seamless with Zaius,” Roberson said. “We simply create the segment, sync it over to Facebook and Google Ad Managers, and the ads run. I don’t have to worry about it. It works with no manual adjustments and saves me a ton of time.”

Behavioral segmentation has enabled Audiogon to do a lot more with cart abandonment campaigns, allowing them to offer different incentives to different users. For example, new users who registered in the last 30 days and have never purchased through Audiogon receive 50 percent off their first listing if they abandon their cart. According to Roberson, these types of behaviorally triggered campaigns would have been impossible to accomplish with their previous tool. And Zaius Omnichannel Campaign Manager makes it easy for the team to send multi-touch abandon cart emails with incremental incentives.

Since switching to Zaius, Audiogon has seen an increase in their total number of dealer leads. In fact, the average number of dealers signed up per month has grown 2X year-over-year.

The team also implemented a new user welcome email with a coupon for users’ first listing, which also points them to other properties. Since starting this campaign, traffic to Audiogon’s other properties has increased a whopping 200 percent annually.

Finally, by using Zaius to segment audiences in ways they never could have before, Audiogon has increased their email-generated revenue by 171 percent. Their average campaign revenue has grown from $197 with their previous platform to $534 with Zaius.

In the end, Roberson said he’s been highly impressed with Zaius’ Customer Success organization. “I’ve never gone more than a day without a solution to an issue,” he said. The team doesn’t just resolve issues; they uncover opportunities and make recommendations to drive revenue. They’re transparent and responsive to our needs, and they genuinely want us to succeed. I’ve never had this with any other provider.”

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“Zaius drastically reduces the time from opportunity discovery to campaign execution. I can uncover something about a specific segment, and I can immediately target that audience with an email. It saves me hours of time.”

Justin Roberson

Director of Digital Marketing, Audiogon