Brand Summary

Lumi Beauty is a skincare brand focusing on natural, botanical, and cruelty-free products. They aimed to acquire more new customers during their Anniversary month (October) while retaining existing customers. Read to find out how we increased their Anniversary month sales!

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Results

Growth in Anniversary Month Sales: 

97% increase in sales (Oct 2021 vs Oct 2022)

13% increase in sales (Oct 2022 vs Oct 2023)

60% of existing customers retained throughout the years

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The Challenge 

In the past, 80% of Lumi Beauty’s budget was spent on running sales without proper audience targeting, with no inclusions or exclusions, while the remainder was dedicated to traffic. This approach resulted in an unmaximized return on ad spend (ROAS) and less-than-ideal results. 

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Hence, our goal was to create a proper content funnel for them.

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Strategy 

Lumi Beauty needed a content funnel to segregate customers.

1. Content Funnelling

Proper content funneling effectively segregates customers through the AIDA funnel: Attention, Interest, Desire, Action. We can then convey messages through different creative angles, which in turn are catered to different audiences.

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2. Campaign Segmentation 

Segmenting campaigns for each funnel of the customer journey can provide valuable insights into customer behavior and help identify potential areas for improvement and where customers are stuck along their journey. 

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Here is what we did: 

1. We optimized each marketing funnel with their winning conversion event through A/B Testing, e.g. attention funnel optimizing for add to cart instead of purchase. This resulted in cheaper and higher new customer traffic inflow. 
2. Better customization of our ad content according to specific audience segmentation down the marketing funnels
3. Scaled ad spending by audience segments for a healthy proportion of new vs returning customers 

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After making these tweaks, the results were evident through a large jump in Anniversary Month sales, showing that optimizing marketing funnels is crucial in acquiring and keeping customers.

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