This case study details the transformative approach taken to overhaul the digital marketing strategy for an online retail store. The focus was on refining customer targeting, optimizing advertising content, and enhancing overall marketing communications to boost return on ad spend (ROAS) and scale the advertising budget effectively.
Challenge:
The online store was facing stagnant growth and underperforming ad campaigns. The existing strategy, reliant on carousel ads, was not yielding the desired ROI, necessitating a comprehensive reassessment and reconfiguration of their marketing efforts.
Strategies Implemented:
- Customer Avatar Development: Initiated the project by creating detailed customer avatars to inform all marketing decisions, ensuring that messaging and targeting were aligned with the audience’s preferences and behaviors.
- Pricing and Communication Strategy Overhaul: Adjusted the pricing strategy and revamped how the business communicated with its customers, making both more responsive to the identified customer needs and preferences.
- Creative Testing and Implementation: Shifted from carousel ads to video content, which proved more effective. Established a workflow for regularly receiving, editing, and testing 7-8 new videos monthly from the business owner.
- Audience Testing and Account Structuring: Explored new audience segments and account structures, finding that CBO (Campaign Budget Optimization) campaigns with cost caps and retargeting ad sets with low budgets and high bid caps were most effective.
- Awareness and Engagement Campaigns: Launched campaigns aimed at building awareness and engagement to increase social proof and website traffic, setting the stage for successful retargeting of visitors.
- Advanced Tracking with GTM: Enhanced ad tracking by integrating Google Tag Manager (GTM) to send more detailed parameters to the advertising account, improving the precision of campaign tracking and optimization.
- Email Marketing Automation: Implemented automation in Klaviyo for email marketing, enhancing the effectiveness of customer communication and retention strategies.
Results:
The revised strategy and new initiatives increased the ROAS from 2.4 to 4.2, well above the break-even point (BEP) of 2.6. The advertising budget grew nearly 9x from its initial size due to the improved efficiency and effectiveness of the campaigns.