How an Online Skincare Boutique Exponentially Improved their Marketing ROI

Art of Skin Care Case Study

The Company

Art of Skin Care is a leading online retailer specializing in high-quality, professional skincare products. With a commitment to promoting healthy and radiant skin, the company offers a diverse range of cleansers, serums, moisturizers, and more curated from top skincare brands. Art of Skin Care emphasizes personalized skincare consultations, providing expert advice and tailored recommendations to help individuals achieve their skincare goals. Their clients can peruse educational resources, including skin type guides and product tutorials, making it a comprehensive destination for skincare beginners and enthusiasts seeking effective, informed solutions.

The Challenge

Art of Skin Care (AOS) faced difficulties in optimizing returns from their marketing investments. Despite the ad campaigns delivering substantial returns, AOS required higher margins to offset the increased expenses associated with their new content management system (CMS). Compounding the issue, their email marketing platform was not well-integrated with the CMS, which hindered the execution of effective email marketing campaigns and customer nurture automation. To achieve consistent year-over-year growth, AOS sought expert marketing consultation to transform their business into a highly profitable venture.

The Goal

Art of Skin Care to:

  • Overcome their Google Ads ROAS plateau of 4.5 with a focus on new customer acquisition.
  • Understand how to segment their customers to better communicate to them and retain them.
  • Understand their core customer segments to understand better what kinds of customers drove better long-term profitability.
  • Deploy effective email marketing campaigns and automation to increase Customer Lifetime Value.
  • Understand what their customer segments’s concerns are in order to boost retention and brand loyalty
  • Analyze key channels and factors that significantly impact the acquisition of new customers with strong brand loyalty.
  • Create a reporting system to effectively measure the success of each campaign or promotional strategy to drive incremental growth

The Results

AOS worked with a Fractional MDS and Performance Marketing team to audit, launch, and optimize their marketing tech and advertising account:

Increased their Google Ads ROAS from 4.5 to 10.8 focusing on new customer

Increase registration to 1st purchase rate by 46% (from 25.6% to 36.7%)

Increase percentage of people who order 3 or more times by 37.5% (from 16.9% to 23%)

Our Key Responsibilities

What we did:

  • Conducted a comprehensive audit of Google Ads and developed a phased optimization plan to expedite growth in ROAS (Return on Ad Spend).
  • Properly set up enhanced eCommerce conversion tracking in Google Ads to maximize revenue attribution and improve machine learning capabilities.
  • Fixed and optimized the Google Merchant Feed, enabling campaign segmentation and prioritization by brand on Google Shopping and Performance Max campaigns.
  • Allocated ad spend to the highest performing brands and products to boost the profitability of Google Ad campaigns.
  • Continuously optimized campaigns on a monthly basis using historical data to ensure sustained performance improvements.
  • Analyzed the purchase behavior to reduce attrition and increase the conversion rate to new purchaser
  • Created customer segments to improve communication and repeat orders
  • Implemented tracking and reporting to measure success and identify opportunities for incremental growth

How it Happened

After our team learned more about Art of Skin Care’s business concerns, we initiated on several projects in order to prioritize and address areas where we can increase revenue output.

Evaluate

  • Google Ads Audit: Conducted a Google Ads audit to identify opportunities for boosting campaign performance and maximizing revenue generation within the allocated budget.
  • Exported and analyzed customer data to establish benchmarks for customer repeat order rates, churn rates, and other key metrics. Identified key factors that strengthen retention and enhance customer lifetime value.

Create

  • Shifted from a non-targeted overall Google Ads performance campaign to a brand-specific new customer acquisition strategy.
  • Transformed non-profitable Meta campaigns into revenue-generating investments.

Evolve

  • Converted Google Ads strategy from a non-targeted overall performance campaign to a brand-specific new customer acquisition strategy
  • Converted non-profitable Meta campaigns into revenue-generating investment

Activate

  • Successfully launched various new brands in the store, achieving a positive advertising ROAS of 4.0 or higher within two months.
  • Restructured and launched Google Ad campaigns that generated a ROAS of 7.0 or higher.

Enable

  • Achieved significant efficiencies, allowing the brand to spend 50% less on ads while generating the same revenue.
  • Redirected ad spend savings towards developing a more user-friendly website experience and enhancing the email marketing strategy.