In this case study, we will explore how our growth marketing studio partnered with a skincare brand to address their sub-optimal Return on Ad Spend (ROAS) on digital media. The primary objective was to achieve a break-even point in the first-time purchase while ensuring a healthy Customer Lifetime Value (CLV). Through a comprehensive and strategic approach, we implemented various campaigns across the funnel, integrating CRM activities with performance spends. This case study highlights the process, challenges, and outcomes of our collaboration.
The skincare brand faced challenges with their digital media strategy, struggling to achieve satisfactory ROAS. They recognized the importance of optimizing their campaigns to break even on the first-time purchase and to enhance the CLV of their customers. To overcome these hurdles, they sought assistance from our growth marketing studio to revamp their digital marketing efforts and drive sustainable growth.
To address the skincare brand's goals, our growth marketing studio devised a multi-faceted solution that focused on leveraging the different stages of the marketing funnel – awareness, consideration, and acquisition – and aligning CRM activities with performance spends.
Awareness: We developed a comprehensive awareness campaign that targeted potential customers at the top of the funnel. Through strategic ad placements, engaging content, and influencer partnerships, we aimed to increase brand visibility and generate interest in the skincare brand.
Consideration: Building upon the awareness generated, we implemented a consideration campaign to guide prospects towards the purchasing decision. This involved crafting personalized content, leveraging user-generated reviews and testimonials, and implementing retargeting strategies to maintain brand presence and nurture leads.
Acquisition: With the goal of converting leads into paying customers, we devised acquisition campaigns that enticed potential buyers to make their first purchase. By optimizing ad creative, implementing persuasive call-to-actions, and providing exclusive offers or incentives, we aimed to maximize conversions and minimize acquisition costs.
Integration of CRM activities:
To enhance the effectiveness of our performance spends, we integrated CRM activities into our campaigns. By leveraging customer data, such as previous purchase history, engagement patterns, and preferences, we personalized the marketing messages and offers to drive better results. We implemented email marketing, personalized recommendations, and loyalty programs to nurture customer relationships and encourage repeat purchases.
During the implementation of the solution, we encountered several challenges, including:
Limited data insights: The skincare brand had limited access to detailed customer data, making it challenging to personalize campaigns effectively. We addressed this issue by implementing tracking mechanisms and encouraging customers to share their preferences and feedback.
Competitive landscape: The skincare industry is highly competitive, with numerous established brands vying for market share. To overcome this challenge, we conducted in-depth competitor research and developed unique value propositions and differentiators for the skincare brand.
Through our strategic approach and comprehensive campaigns, we achieved significant improvements for the skincare brand:
Improved ROAS: By optimizing campaigns at each stage of the funnel and leveraging CRM activities, we significantly improved the brand's ROAS on digital media. This led to more efficient and cost-effective customer acquisition.
Break-even on first-time purchase: We successfully reached the brand's objective of achieving a break-even point on the first-time purchase. By reducing acquisition costs and enhancing conversion rates, we helped the brand attain profitability earlier in the customer journey.
Increased CLV: Through personalized marketing efforts, loyalty programs, and nurturing customer relationships, we increased the CLV of the skincare brand's customer base. This resulted in higher customer retention rates and improved revenue streams over the long term.
Through our collaboration with the skincare brand, our growth marketing studio was able to address their sub-optimal ROAS and achieve a healthy CLV.
Ollie Fairweather, Head of Commercial
Growth Spin team have been great to work with and have deep knowledge across all aspects of performance marketing.