How Newegg Uncovered a New Incremental Revenue Stream Without Disrupting the Customer Experience

Summary

Ecommerce retailer Newegg partnered with Rokt to enrich the customer experience with personalized offers during checkout, leading to an 83% uplift in monthly revenue and $300K for every 1M transactions. This smart monetization strategy unlocked a new revenue stream for Newegg and improved customer satisfaction without disrupting cart conversions.

Client Challenge

Newegg is the leading global ecommerce retailer for consumer electronics, computer hardware, gaming devices, home appliances, and more. Known for its competitive pricing, comprehensive product reviews, and variety of product offerings, Newegg has grown to become a popular online shopping destination for tech consumers, while also serving businesses’ needs through its robust marketing, supply chain, and technical solutions.

However, like most ecommerce retailers in today’s competitive digital marketplace, Newegg faced consistent challenges, including fluctuating customer acquisition costs, declining profit margins, and pressure to deliver a best-in-class customer experience. Furthermore, in an increasingly saturated market, expanding its existing customer base and converting site visitors into paying customers – and keeping them – proved to be a constant hurdle. 

To combat these challenges, Newegg launched targeted digital advertising campaigns, which successfully drove a high volume of site traffic and healthy customer engagement, but failed to move the needle on customer acquisition and profitability at scale.

As a result, Newegg began considering site monetization as a supplementary strategy for driving increases in profitability and growth, but needed a solution that would enhance – and not detract – from the customer experience. 

Said Mark Fan, Senior Business Intelligence at Newegg: “We were looking for a solution that could seamlessly integrate with our existing ecommerce platform and provide relevant offers to our customers at key touch points throughout their shopping journey.”

Newegg unlocks a new revenue stream with Rokt Ecommerce 

Newegg partnered with Rokt to monetize their customer checkout journey and maximize the value of each transaction.  Specifically, they integrated  Rokt’s ecommerce relevance platform on their Payment and Confirmation pages during the Transaction Moment, that critical time when customers are at peak engagement and most likely to respond to relevant offers. 

With Rokt, Newegg was able to instantly create a new revenue stream by determining the most relevant payment offers to display to customers during checkout, and rewarding customers with exclusive offers from leading advertisers after their purchase had been completed. Each time a customer opts-in to an offer, Newegg generates ancillary revenue.

Furthermore, because Rokt’s AI and advanced machine learning platform enables Newegg to process their first-party customer data in real-time, Newegg is able to maintain a seamless customer journey by ensuring that offers are personalized for each individual customer and that customers are only ever exposed to the offers that are highly relevant and valuable to them. 

As Fan said, “When we discovered this new incremental revenue channel through Rokt, it felt like a breakthrough. The data-driven approach and ability to deliver personalized offers at critical points in the customer journey gave us a renewed sense of optimism. It provided a fresh perspective on how we could enhance our marketing strategy and more effectively reach potential customers.”

“Not just another ad” – Delighting customers while gaining incremental revenue

Within months of launching Rokt on their site, Newegg was able to achieve key business goals including:

• Enhanced Customer Experiences: Personalized, exclusive offers at checkout and post-purchase stages delivered more value to customers, increasing customer satisfaction and engagement.
• Increased Revenue: Third-party offers optimized for 1:1 customer relevance drove high conversion rates, unlocking $0.30 of incremental revenue per transaction.
• Operational Efficiency: A new revenue stream unlocked additional capital that could be reinvested into operational growth and the scaling of other key business initiatives. 

Integrating with Rokt did not compromise customer experience but rather enriched it. For example, Fan said that shoppers told him, “The special discount on accessories that popped up was exactly what I needed to complete my purchase. It felt like a thoughtful recommendation and not just another ad.”

Unblocking strategic advertisers to achieve revenue uplift  

Initially, Newegg had limited the offers shown to customers on the Payment page to only those from leading payment providers. As the Payment page represents a critical step of the customer checkout journey, Newegg was hesitant to allow the display of offers from Cashback & Rewards advertisers over concerns that doing so would potentially disrupt cart conversions.

Working in close collaboration with Rokt, Newegg decided to launch an experiment to test how showing offers from Cashback & Rewards advertisers (including Capital One Shopping and Rakuten) on the Payments page affected the customer experience and revenue performance. 

Almost immediately after launching the experiment, Newegg saw an uplift in Value per Transaction (VPT) and Value per Payment Page Transaction (VPP). Within two months of unblocking Cashback & Rewards advertisers, Newegg had achieved a 375% increase in VPP and a 157% increase in overall VPT, demonstrating that Newegg customers found the offers from Cashback & Rewards advertisers to be valuable – and not disruptive – to the overall customer experience. 

Fan notes, “These improvements are critical for our business as they directly translate into increased revenue, allowing us to invest in other areas such as product development and customer support.“

Defining the Key Ingredients of Success 

The partnership between Newegg and Rokt represents a truly collaborative partnership, with both organizations mutually focused on delivering measurable business outcomes and optimizing for growth.  

The success of the partnership underscores the importance of a shared vision, open communication, and a commitment to innovation. Rokt’s ability to deliver tailored solutions that were aligned with Newegg’s strategic objectives has been pivotal in achieving mutual success and driving continuous improvement in customer engagement and revenue growth.

As the partnership continues to evolve, Newegg is excited to explore additional ways to enhance the customer experience and drive ancillary revenue by leveraging Rokt’s technology.

To learn more about how Rokt Ecommerce can help you make the most of the Transaction Moment, schedule a consult.