How KicksUSA Boosted Their Bottom Line with Magento Business Intelligence

KicksUSA needed to put their data to work.

With over 50 retail locations, KicksUSA is one of the largest retailers of urban footwear and apparel on the East Coast of the United States. Five years ago, they didn’t even have a web presence, but after transitioning into an eCommerce powerhouse, the family-friendly company has enjoyed phenomenal growth. Their webstore, which sells the latest Jordan, Nike, Adidas, and Puma footwear, is powered by Magento Commerce, and in 2016, they decided to take control of their data too. “We were spending way too much time building reports,” explained Virgil Ghic, Director of Digital for KicksUSA’s parent company, Jako Enterprises. “If someone asked for yesterday’s sales we’d get five responses, but they were all different.” KicksUSA needed a single source of truth to effortlessly manage their data and drive decision-making.

KicksUSA also wanted to use data to boost sales, by discovering their best performing marketing channels. This was far more complex than simply tracking conversion rates with Google Analytics. Important factors included rates of fraudulent transactions, return rates, and the likelihood of repeat purchases. All these data points combined would give KicksUSA a complete understanding of customer lifetime value by channel. While Google Analytics was helpful for a small piece of the puzzle, they required a full-stack solution to gain a more complete view, and influence important marketing decisions. So KicksUSA partnered with Magento Business Intelligence to take control of their data.

Magento Business Intelligence was a 'life-changing' event.

Virgil Ghic

Director of Digital, Jako Enterprises

KicksUSA made some amazing data discoveries.

Magento Business Intelligence created a powerful engine for KicksUSA to consolidate disparate data from their Magento database, Google Analytics, Zendesk, and other sources. This was a “life-changing event,” according to Ghic. With this data in hand, they built dashboards that revealed a nuanced understanding of the brand’s revenue funnel—reports that were available at the drop of a hat. The data factored in total demand, then ‘netted out’ fraud and returns, and segmented their customers by new and repeat purchasers. These live dashboards broke down net revenue and customer lifetime value by acquisition channel, providing a complete picture of marketing ROI. The results were fascinating.

“We found that customers who are more likely to come back have a high satisfaction rate,” said Ghic. To win the loyalty of sneaker-fans, KicksUSA tripled the headcount of their customer success team and focused on welcoming back returning customers. “We identified that the customer often forgot their username and password, so we invested in a platform to allow customers to login with Facebook and Google.” The brand also made investments in a size recommendation engine, to allow customers to type in their weight, height, and other body information to find the perfect-sized Nike Air Max 90 or Adidas Primeknit.

Happy customers love to return to KicksUSA

Thanks to Magento Business Intelligence, KicksUSA had the confidence to invest heavily in customer service, increasing its staff drastically. “This is our most important metric right now,” said Ghic. Their dashboards show how many customer service tickets they have open, the number of incoming phone calls, and when these calls happen. If their team is overwhelmed, they can add extra resources. “All this helped us win back customers,” said Ghic, “Last year we had 20 percent return rate, this year we had 35 percent, and revenue from those customers was around 45 percent.” In an era when acquiring, converting, and retaining valuable customers is becoming more difficult, KicksUSA used Magento Business Intelligence to find a competitive edge. To date, Magento Business Intelligence has made it easier for KicksUSA to save time, uncover insights, and empower their teams across the company.

Additionally, the KicksUSA data analysis revealed that fraud was a major issue in specific channels. By shifting focus and budget away from underperforming campaigns and partnerships, KicksUSA was able to drive growth and save thousands in losses. The company saw online sales grow an unprecedented 60 percent year-over-year in 2016. They also estimated annual efficiency gains of over 20 percent, thanks to processing fewer returns and fraudulent orders. Moving forward, KicksUSA is currently doubling-down on its data-driven marketing optimization by incorporating data from its brick-and-mortar ERP system. By joining its offline data with valuable online insights, they will gain a deeper understanding of its customers, and how they like to buy sneakers.

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