Background
The Yellow Dwelling focuses on providing high-quality and affordable home furnishings with unique designs. The company aims to transform houses into cheerful, eco-friendly homes by offering products made from cotton & natural fibres. The brand began with its flagship store in Bangalore in 2018 and expanded to eight retail stores across 6 major cities within a span of 5 years. They however, started seeing a ceiling effect on new customer growth across their sales channels.
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Challenges Faced
Despite carving a strong retail presence in Southern India and investing seriously in performance marketing, The Yellow Dwelling struggled with high conversion costs and suboptimal ROAS. They experienced significant interest-based traffic on their website but the actual sales lagged far behind. To address these challenges, The Yellow Dwelling partnered with Xpert to leverage data-driven audiences.
Audience Strategy Undertaken
The goal was to scale new customer growth across stores at optimised marketing spends. Xpert's data analysis identified the brand’s customers as regular buyers of personal care & fashion products via DTC. The data further revealed their target consumer persona to be trend-conscious working professionals who value comfortable living. Counterintuitively, young adults also formed a significant portion of their buyer base. Xpert’s targeting strategy focused on eliminating non-serious buyers and spending ad budgets exclusively on audiences matching the consumer persona identified with a demonstrated affinity towards buying ‘contemporary looking’ decor & fashion items and premium beauty products.
Results Achieved
By targeting the refined audience segments identified by Xpert, The Yellow Dwelling saw a significant improvement in their marketing performance. This new focused approach led to a noticeable 30% reduction in CACs. Sales conversions increased as ads were shown to individuals having genuine purchasing capacity & aligning with their buyer persona. This enhanced targeting strategy resulted in a remarkable 250% increase in ROAS during the audience trial period, validating the effectiveness of Xpert's data-driven approach.
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Inferences & Insights
The collaboration with Xpert provided valuable insights into The Yellow Dwelling's customer base. It became evident that the key to boosting new customer growth lies in understanding the nuanced identity traits and purchasing behaviours of one’s target buyers- data insights that cannot be discovered by a brand independently but made accessible via the power of network intelligence. More importantly, this journey also highlighted the underlying need to feed back store sales data to digital ad platforms for further improving sales performance for omnichannel brands.