Background
In a fast-paced world where every minute is precious and hustle is the name of the game, quality sleep and effective relaxation is more valuable than ever. Born out of a new mother's realization of the importance of good sleep, The Sleep Company has been on a mission to redefine the way people rest. By combining extensive research in sleep science with innovative technology, they've crafted the world's most comfortable mattresses. Their product lineup continues to grow with adaptable beds, comfy chairs, and reliable cushions. Despite having top of the line products and being an industry leader, the company was finding it challenging to keep their digital ad spends optimized. While the company website garnered ample traffic from Facebook and Instagram ads, a large number of these visitors failed to convert to buyers.
Audience Strategy Undertaken
To overcome this marketing challenge they partnered with Xpert. Xpert’s key offering is its unique ability to filter out non-serious buyers i.e., people with an interest but not intent or capacity to buy. Moreover, Xpert was able to further refine The Sleep Company’s ad targeting by leveraging its specially structured database. Xpert’s data analysis revealed that a significant percentage of the brand’s customers were regular F&B buyers. Moreover, about 50% of them were projected to be ‘Appearance Conscious’. These findings were somewhat counterintuitive but they helped Xpert pivot their advertising strategy to target not only those buyers who had a demonstrated history of purchasing other sleep-enhancing products but also customers who had high purchasing affinity towards sectors like F&B and Apparel.
Results Achieved:
Post collaboration with Xpert, The Sleep Company experienced a remarkable improvement in its Return on Ad Spend (ROAS). By eliminating non-committal visitors, the advertisement money was now channeled towards a more probable-to-convert audience. This inevitably led to improved cost efficiency on ad spends. Moreover, by reaching out to audiences who were Appearance Conscious or big time Foodies, the brand saw a significant rise in conversion rates.
48%
Decrease in CPA
76%
Improvement in CTR
54%
Increase in ROAS
Inferences & Insights
Xpert was built on the thesis that only 2% (10M) of India’s 400M Internet users are core D2C buyers. Audiences are far more likely to convert by targeting these core DTC buyers, versus open 'interest' based targeting. Leveraging specialized tools like Xpert, that can tap into actual buying behavior and track customer footprints outside a brand’s own store can drastically improve advertising outcomes. The case of The Sleep Company underscores this need for precise and data backed audience targeting. In the vast digital landscape, it's not just about reaching many; it's about reaching the right ones.