Background
Arte House launched with a vision to revolutionise the market of idols and statues in India. Driven by a passion for combining technology with art, Arte House has carved a niche space in the home décor segment. Despite its unique product offering and significant performance ad spend, they struggled with high conversion costs, suboptimal ROAS, and difficulties in growing their customer base and acquiring new customers.
Audience Strategy Undertaken
To address these challenges, Arte House partnered with Xpert to refine their audience targeting strategy. Xpert's data-driven approach identified key characteristics of their ideal customers—design-conscious, home-makers with a focus on traditional living. By targeting individuals with a history of purchasing home decor and gift items, Xpert enabled the brand to better allocate their ad budget towards only ‘actual buyers’ with genuine purchase affinity for their product category.
Results Achieved
This strategic shift in ad targeting led to a significant reduction in customer acquisition costs and an improvement in ROAS. By engaging a more intent-driven audience, Arte House was able to optimise their marketing spend and achieve higher sales, specifically from new customer acquisitions.
Inferences & Insights
The case of Arte House highlights the importance of data-driven audience targeting in overcoming marketing challenges. By focusing on customers who resonate with the brand's offerings & are willing to pay a premium for it, DTC businesses can optimise their ad budgets while scaling new customer growth.
