Targeting new-to-brand customers while smashing revenue growth
Sarah Chapman is a premium skincare brand that delivers high-tech formulas combined with the best nature has to offer through its Skinesis brand.
Since its launch in 2008, the brand has sold through their ecommerce website and on beauty marketplaces such as LookFantastic, Cult Beauty, Sephora and ASOS.
Their challenge was to grow the number of new customers purchasing through their website while:
- Maintaining the level of revenue and ROAS that returning customers provide
- Competing against marketplaces that offer attractive discounts
Strategy & Results
- Restructure the account to mimic the user journey for new-to-brand customers
- Competitor research and analysis
- Introduce a pricing and promotion strategy to entice new users
- Target returning customers
- Build bespoke reporting to track weekly results and adjust our strategy as required
- 65.2% more new customers month on month.
- New customers coming from paid ads increase from 17.4% to 44.23%.
- Revenue +58.6%
- ROAS +47.8%
New vs returning customer split on the ads account moving from:
- 21% new vs 79% returning
- 36.5% new to 63.5% returning
What we did
1. Account Restructure
Our first step was to restructure existing campaigns to make it as clear as possible when we were targeting new customers, and when we were targeting returning customers.
Performance Max campaigns presented a different challenge, as they use audiences as signals and can target users outside of the audiences given. To overcome this, we split Prospecting vs Remarketing audiences as we did with Search and Shopping.
We also set the campaigns an objective to prioritise new customer acquisition to encourage the algorithm to look for new-to-brand users.
2. Competitor Research
As part of our strategy to bring new-to-brand users to the site, we analysed the tactics used by marketplaces that sold Sarah Chapman products. We discovered what kind of promotions they offered, and what we would be competing against.
From this research, Sarah Chapman developed competitive offers, for which we created ad copy and promotional assets, such as:
- 10% off for new customers
- Free travel-size gift for orders over £120
- 60% off one of their best-selling products for a limited time
3. Budget & Bid Management
With our new structure and promotions in place, and the brand providing weekly new customer data, we built a bespoke report that matched transaction IDs from new customers to paid ad campaigns.
This report allowed us to monitor which campaigns were delivering the highest amounts of new customers. From this we could adjust our budgets and bidding targets accordingly.
"It was exciting to work with a client who understood the importance of generating new customers for the brand and the lifetime value they represent.
"Sarah Chapman gave us the freedom to allow for fluctuations in revenue and ROAS levels while we implemented a completely new campaign structure and waited for this to mature. Our strategy, and their trust in our approach, paid off with 65.15% more new customers, 58.63% higher revenue and a 47.84% higher ROAS."
June Gil, Head of Performance, Fluid Commerce
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