Dealing with small marketing budgets

The Promise of Virtual Try-On Technology
The Promise of Virtual Try-On Technology

Context

Allegro, Poland's largest e-commerce platform, recognized the need to enhance its consumer-to-consumer (C2C) segment to compete with emerging platforms occupying this niche. Allegro Lokalnie was launched as a dedicated platform under the Allegro umbrella to provide a safe, streamlined selling experience for casual merchants, focusing on competitive pricing and customer safety.

Problem Identification and Consequences

Despite being backed by Allegro's extensive user base and market presence, Allegro Lokalnie faced the challenge of operating with a limited marketing budget. The shift of the main Allegro platform towards a product-centric approach resulted in reduced visibility for Allegro Lokalnie, affecting its traffic and user engagement. This limitation was significant in their efforts to scale and maintain relevance in the competitive C2C market.

Solution Implementation

1. Enhancing SEO and Organic Traffic

  • To drive new user acquisition and improve site visibility, extensive SEO optimizations were implemented. These included enhancing website loading times, optimizing Web Vitals, and implementing advanced loading techniques. The integration with Allegro's main SEO admin panel and dedicated SEO enhancements ensured faster SEO ranking improvements for Allegro Lokalnie.

2. User Base Expansion through Platform Integration

  • Integration strategies with the main Allegro platform were employed to ensure seamless user experiences and encourage Allegro users to resale on Allegro Lokalnie. This not only retained users but also expanded Allegro Lokalnie’s user base. By leveraging existing components, the functionality expected to take three months was delivered in just one month.

3. Mobile Engagement

  • A mobile application was developed to facilitate user engagement through intuitive design and features like push notifications and personalized emails. This approach significantly improved retention and user interaction.

4. Free Delivery Incentives

  • To enhance cost-effectiveness and appeal to C2C transactions, a free delivery program similar to Allegro's existing Allegro Smart was adapted and implemented for Allegro Lokalnie users. This feature was developed and refined over several months to ensure it met its success criteria, ultimately boosting sales by 30% and setting a foundation for future expansion.

Business and Product Gains

The strategic focus on SEO, integrated user experience, mobile engagement, and cost-effective delivery options resulted in substantial growth for Allegro Lokalnie. Sales increased by 30%, and the platform evolved significantly, demonstrating the effectiveness of the targeted improvements in retaining and expanding the user base. The development trajectory of Allegro Lokalnie, from a startup phase within Allegro to achieving robust operational levels akin to a mature enterprise, showcases its successful adaptation and growth in the competitive e-commerce landscape.

[link to allegro lokalnie case study]