Background
The Pony & Peony Co., founded in 2017, is a children's clothing brand offering a blend of style and comfort. Known for its breathable, high-quality fabrics and vibrant designs, the brand caters to special occasions and everyday wear with a range of ethnic wear, dresses, and luxe collections. With a growing customer base, The Pony & Peony Co. strives to balance aesthetics and functionality in every outfit, making them a go-to choice for appearance-conscious parents who value chic, trendy clothing for their children.
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Challenge Faced
Despite significant investment in performance ads, The Pony & Peony Co. struggled to convert website traffic into sales. Although there was a strong influx of interest-driven traffic, the sales were not aligned with expectations, leading to a high cost of conversion (CAC) and suboptimal ROAS. The brand sought a solution to optimise their marketing spends and accelerate their new customer growth.
Audience Strategy Undertaken
To tackle these challenges, The Pony & Peony Co. partnered with Xpert to leverage data-driven, precision audiences. Xpert's audience performance insights identified the brand’s core customers as parents who were appearance-conscious and willing to pay a premium for trendy, stylish outfits for their kids. These custom audiences were further refined to focus on individuals with a proven history of purchasing complementary products like premium toys, toddler-friendly food, and kids' accessories. This strategy helped The Pony & Peony Co. exclude low-interest buyers and focus their ad spends on higher-conversion audiences.
Results Achieved
This collaboration resulted in a significant improvement in both conversion rates and ROAS. By targeting more precisely, The Pony & Peony Co. was able to achieve a 29.3% reduction in CAC and a 61% boost in ROAS, ensuring that marketing spends were utilised more effectively. A data-driven targeting approach successfully eliminated irrelevant traffic, driving higher sales and improving overall ad performance.
Inferences & Insights
The Pony & Peony Co.’s case demonstrates the importance of using data to understand customer identity traits and buying behaviours. By focusing on audiences with relevant purchase histories, the brand was able to minimise wasted ad spend and improve overall campaign efficiency.