Matas Group is the leading health and beauty retailer in Scandinavia, operating nearly 500 stores across Denmark, Sweden, Norway, and Finland, as well as a leading eCommerce platform. In 2021, Matas launched a consumer subscription-based loyalty service, Club Matas Plus.
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By targeting a high-risk audience of dormant subscribers surfaced by Subsets’ explainable AI, Matas’ Loyalty team was able to run a targeted retention experiment without engineering resources. The experiment was a personalized re-engagement strategy that proved highly effective, achieving a 29%-point lift in retention within 30 days while driving 20% more orders at the same time.
“The Subsets platform has put our subscription retention strategies to new highs. From our first meeting, the Subsets team demonstrated a strong commercial understanding of our business, which made a complex business challenge really easy to understand and navigate. Secondly, the platform is very intuitive. By identifying AI audiences at risk, the Subsets platform enables us to develop more timely and relevant retention strategies proactively.”Julie Marie Hauerberg Head of Loyalty, Matas
Managing subscription retention within a six-figure subscription base is immensely challenging. Matas’ Loyalty team did not have clear indications about which subscribers to prioritise for specific retention initiatives, but also lacked an efficient way to run experiments and measure the actual impact on retention rates and other behavioural campaign metrics, such as online activity.
Like many consumer subscription businesses, Matas has specific cohorts with churn rates well above the average. It is a clear priority for Matas to provide enough value through their subscription service to keep subscribers engaged and active, also for cohorts with above-average churn rates.
The Subsets platform automatically identified a wide range of audiences across the lifecycle, including “dormant subscribers who used to be active”. Using a combination of traditional Machine Learning and more advanced interpretable AI, the Subsets Platform automatically finds and highlights audiences, such as this one.
With explainable AI, Subsets highlighted why these subscribers were considered high risk and provided deeper insights into their behaviour before becoming dormant, explaining that they had shown moderate activity in the previous 60 days before becoming inactive for 30 days. This gave Matas’ Loyalty team a clear understanding of the audience. Using the Subsets experimentation engine, the Loyalty team could efficiently run retention experiments and validate whether reaching out to dormant subscribers would be effective.
Matas’ Loyalty team quickly defined a personalized retention sequence to re-engage the audience with valuable content. The Subsets Platform automatically orchestrated the experiment through Matas’s current CRM, ensuring that only the treatment group would be receiving the loyalty flow.
By automatically following retention and behavioural metrics in real-time during the experiment, Subsets enabled the team to execute and measure their strategy without relying on engineers. The platform also provided signals for whether the retention results proved to be statistically significant, and gave a recommendation to turn the journey ‘always on’.
“We can compare our AI-driven retention flows with a control group at all times to measure the effect. Within the first 6 months, we launched 10 predictive retention flows that have proved remarkably higher retention compared to our control groups. Overall, an amazing and truly trustworthy team to work with, and a platform that is easy to understand and navigate.”
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