Background
Jaipur Rugs, founded in 1978, is a renowned Indian brand known for its luxurious and uniquely designed furnishings. Headquartered in Jaipur, the company collaborates with artisans across five Indian states and extends its global reach through its U.S. branch, Jaipur Living. Its rugs are distributed to over 60 countries, including Milan, Paris, Beijing, and Moscow. The brand has revolutionised the carpet industry by empowering artisans with sustainable livelihoods and operates flagship stores in Mumbai and Jaipur.
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Challenge Faced
Despite establishing a strong retail presence across India and heavily investing in performance marketing, Jaipur Rugs faced low conversion rates and a high cost per conversion. Their ads were underperforming, resulting in an unsatisfactory return on ad spend (ROAS). The main challenge was attracting the right kind of high-intent audience which would convert to actual sales without burning on ad spends.
Audience Strategy Undertaken
To address this challenge, Jaipur Rugs leveraged Xpert's data-driven Audiences to refine their targeting strategy. Xpert analysed the buyer data and identified key traits and behaviours of potential customers. The strategy focused on targeting audiences with a history of purchasing complementary luxury products such as home decor, state of art furniture, and kitchen & dining products. Xpert's data revealed that their ideal customers are design-conscious homeowners who love decorating and buying handcrafted products. By narrowing their focus to these segments, Jaipur Rugs aimed to improve ad efficiency and conversion rates.
Results Achieved
The implementation of Xpert's audience strategy led to a significant improvement in Jaipur Rugs' marketing performance. This targeted approach reduced the cost of customer acquisition by 91%, effectively reaching high-potential buyers and boosting ROAS by an astonishing 15 times. Refined targeting not only minimised ad spend wastage but also improved their Click-Through-Rate (CTR) and by 93%. Concentrating ad impressions to a narrow but high intent audience set led to a 34% increase in ad view frequency too!
Inferences & Insights
This case study underscores the importance of precise audience targeting in optimising marketing efforts. By leveraging detailed audience insights and focusing on high-value segments, Jaipur Rugs was able to address the challenges of high acquisition costs and low conversions. This change in targeting approach not only improved their ad spend efficiency but also reinforced the brand's ability to connect with a luxury focused audience segment, ultimately driving better business outcomes.