Natural skincare brand: Data-driven advertising effectiveness, breakthrough conversion performance.
When planning advertising campaigns, effectively linking front-end exposure with back-end performance analysis is crucial for sustained revenue growth. Growth Strategy, a performance growth strategy consultant, and IBA, an inbound customer data marketing firm , broaden the horizons of decision-makers.
Brand Introduction
As a skin-renewing skincare brand, our client’s brand philosophy emphasizes clinical research and practice; undergoing rigorous processes to produce pure and non-toxic products. Furthermore, they have introduced the concept of “skin grading” in their skincare products, providing consumers with meticulous skin management, which has gained widespread recognition, resulting in the sale of over ten million bottles to date.
Since 2020, the client has been collaborating with Growth Strategy (GS) on projects including optimizing brand SEO and planning marketing proposals for new product launches. In 2021, GS partnered with IBA Inbound Marketing to launch brand operations consulting services, aiming to optimize advertising effectiveness and drive revenue growth.
Marketing challenges and customer pain points
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Marketing costs cannot be realized, and e-commerce revenue has reached a bottleneck.
The advertising and discount strategies that clients used in the past are no longer able to increase revenue, and the effectiveness of budget conversion has stagnated.
Like a common blind spot for e-commerce owners: believing that spending a lot of money on advertising will bring returns; thus, they fall into an endless abyss of “high advertising and discounting”, and even if they eventually sell products, the gross profit is squeezed to an extremely low level.
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Increasing marketing spending still fails to improve conversion rates.
Past strategies have focused on two main areas: “increasing advertising monitoring costs” and “manipulating keyword traffic,” but these efforts have only been able to maintain current sales performance and have not been able to break through the digital ceiling . Moreover, the lack of valuable tracking data has prevented the development of effective marketing and operational strategies.
Solution 1: Carefully calculate the advertising effectiveness and immediately stop ineffective advertising.
“A more important revenue driver than traffic: ad conversion rate”
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Attribution of Advertising Effectiveness:
Through step-by-step analysis by the GS team, they eliminated the blind pursuit of traffic exposure and focused on key operational priorities such as the allocation and distribution of advertising, recalibrating marketing strategies based on real-time market feedback, and tiered membership benefits . This ensured that marketing budgets were directed towards strategies and channels with the ability to deliver results.
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Instant verification of advertising effectiveness:
Targeting different consumer groups and product characteristics, we intensively tested GS’s diversified advertising strategies and established KPIs for performance grading; the broad-based advertising strategy was constantly adjusted based on real-time market feedback to ensure that the conversion efficiency of advertising was always at its best .
Solution 2: Establish data-driven management to unlock high-value customer retention strategies.
“Marketing cannot rely solely on advertising; it should have a sound operational structure to support its marketing strategies.”
Implement GS performance management tools within the company to reform data management of product website exposure effectiveness, online and offline promotional effectiveness, and marginal benefits after the marketing plan ends. This provides a clear overview of the short, medium, and long-term effectiveness of marketing strategies, the basis for achieving targets, and comparative analysis with expected indicators . Simultaneously, considering the consumer product usage cycle, it is recommended to implement a “membership segmentation system” for effective segmented communication and maximizing the return on marketing investment.
Ad conversion results:
Revenue grew by 40%, successfully breaking through the performance ceiling!
Net advertising revenue, excluding advertising expenses: grew by more than 40% compared to the same period of the previous year.
Return on advertising investment: grew by 60% compared to the same period of the previous year.
Key to success
Data-driven advertising effectiveness analysis involves not only analyzing results from the channel backend, but more importantly, constantly examining and adjusting variables that affect campaign effectiveness . Only by effectively linking front-end exposure in advertising planning with back-end performance analysis can revenue continue to grow.
Digit Spark, part of the Zhenhao Internet Media Group, integrates its six sub-brands offering data application services to provide enterprises with comprehensive and precise optimization services across five key areas: “Industry Customer Targeting,” “Performance Optimization Strategies,” “Digital Tool Integration,” “Online Voice Cultivation,” and “Brand Value Promotion.” It drives brand success through data technology.
