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Investing in app helped Nykaa reach greater heights: Hitesh Malhotra, CMO,

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Investing in app helped Nykaa reach greater heights: Hitesh Malhotra, CMO, is a household name in India today. It is one of the flagship organisations in India that went digital first, that too in an untapped market like beauty and wellness, which so far only has international names to its credit even in a country as vast as India.

The company began as an ecommerce site in 2012 and has since opened several physical stores too. But there came a point when Nykaa suddenly realized that they were only reaching about 2 to 3 percent of their overall cookie ad pool. With India moving towards a mobile-first society, they also wanted to ensure their digital campaigns were reaching customers on their preferred platforms, whether on a mobile browser or the Nykaa app.

That's when Nykaa decided to partner with Criteo, the commerce marketing technology company. It clearly was a match made in heaven as Criteo's Dynamic Retargeting Program helped Nykaa deliver highly personalized ads to shoppers in their preferred format, based on their browsing behaviour.

As Nykaa CMO, Hitesh Malhotra said, "We always had a clear digital content strategy to break the clutter. From Day One, we were very clear that our audience is on digital and on social media, they are watching online videos and they are shopping online. It made more sense to invest heavily in digital. The only way to stand out is to take the content - be it videos, banners, ads- to an international level. We offered them reviews, which no other vertical in the same space was doing. Criteo works brilliantly as a recommendation tool."

The result was that Criteo Dynamic Retargeting delivered five times increase in sales, 54 per cent increase in Average Order Value and seven times increase in ROI for Nykaa.

Siddharth Dabhade, GM, Criteo India, said, "Retargeting helps consumers come back to a website. We are doing this very strongly particularly in the app space. But re-engagement with consumers is just as important otherwise people would simply delete an app once it serves the purpose. Interestingly, 30 per cent of products were sold through Criteo campaign even when a consumer had not seen the product earlier."

"With a new partner like Criteo, today we are sitting on a business which has 30 per cent new customers and 70 per cent existing customers. These 70 per cent existing customers mitigate the cost of the new customer base as they are coming from cheaper marketing channels for us. This is what happens when one has a strong retargeting strategy," added Malhotra.

Speaking of multiple devices being an inherent part of online shopping today, Dabhade said, "Our technology enables a single view of consumers across devices. There is a clear measurement of ROI with Criteo."

While on the topic of digital media, Dabhade also highlighted a few key trends he foresees this year. He said, "Personalisation has always been key and will continue to be so. Our Kinetic Design Technology enables us to customise based on each consumer. This is video as well as banner based. Second big trend we see is the de-growth of desktop and huge growth of app. My consumer experience has to be seamless."

Tags Criteo survey Nykaa Hitesh Malhotra

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