LOOKFANTASTIC revolutionises paid search strategy with LiveRamp's insight
How UK’s ultimate beauty shop, LOOKFANTASTIC, developed an optimised suppression strategy to generate a 7-figure incremental revenue lift per annum
Total incremental revenue lift
Return on investment
Days to revolutionise PCC strategy
It took a test budget media and measurement cost of £20k and just 10 days to unlock the insight that will determine a 1.74% overall incremental revenue lift, equating to a projected seven figures over 12 months.
Using LiveRamp’s Data Collaboration platform, LOOKFANTASTIC discovered that although significant media savings were made through the existing blanket customer suppression strategy, switching to a stepped approach would significantly increase sales.
Looking at each of the 3 segments with the test and control group, LiveRamp determined that;
x4.4 ROI was achieved for groups that purchased ‘once’ and ‘two-five’
By releasing paid search budget to capture both the ‘purchased once’ and the ‘purchased two-five’ groups, LOOKFANTASTIC would drive 1.74% incremental revenue lift equating to seven figures over 12 months, and achieve an ROI of x4.4, therefore recommended to include within paid search activity
x7.2 return on investment for biggest incremental revenue group of ‘two-five’
In particular, there should be a focus on targeting customers who purchased between two-five products in the last year, driving an ROI of x7.2
- LOOKFANTASTIC should continue to suppress paid search budgets to the five-plus group, as there wasn’t a significant impact on customer purchase to make spend worthwhile.
- Instead, there should be a focus on converting the two-five segment into loyal customers, preferably those to join the LF Beauty+ program to drive marketing effectiveness
LiveRamp deliberately recommended dates where LOOKFANTASTIC were likely to see regular spend patterns, therefore the revenue figure seen is conservative – once ‘sales events’ such as Black Friday, Cyber Monday, Christmas and Mothers Day are taken into account, incremental revenue and ROS will be predicted to be much higher.