E-commerce Retail

How The Perfume Shop improved their conversion rate by 82%

Founded in 1992, The Perfume Shop set out with the simple idea of making luxury perfume brands accessible to everyone at an affordable price. The Perfume Shop is the UK’s largest specialist fragrance retailer, with 215 stores across the UK and Ireland.

+82%

Conversion Rate

-21%

Cost per acquisition

+20%

Return on ad spend

The challenge

The Perfume Shop wanted to automate their paid social campaigns in order to save time and increase profitability.

They also wanted to identify which products proved profitable in Google Analytics and increase dynamic ad promotion for these items.

Finally, The Perfume Shop wanted to make their creatives more eye-catching while staying on brand, quickly recreate time-sensitive creative campaigns, and simplify the campaign process overall.

The Solution

In 2022, The Perfume Shop and their media agency, Incubeta, partnered with ROI Hunter to enhance their dynamic ads and improve their direct response (DR) activity on Facebook.

Dynamic products setup

ROI Hunter first set The Perfume Shop up with the Product Performance Management (PPM) platform. The PPM platform allows retailers to connect all of their channels (Meta, Google Analytics, Google Shopping, etc.) into one source of truth.
With data from all of their channels in one place, the PPM platform enabled The Perfume Shop to access and understand their product-level performance, and filter their product inventory to find specific metrics.

Incubeta was then able to create a number of strategic product sets for The Perfume Shop by using insights from the PPM platform, such as:

Excluding Low Performers (Google Analytics Transactions > 1)
Trending (Google Analytics Impressions Top 20% last 7 days)
Stop Loss (Segments excluding Facebook Poor Performers)
Bestsellers (Top 10% Google Analytics Transaction products)

By creating separate product sets for each specific goal (increase revenue, scale spend, etc.), The Perfume Shop gained control over which of their products were promoted in their dynamic ads, enabling them to meet their business goals.

ROI Hunter ran A/B tests within two week testing sprints to effectively identify The Perfume Shop’s top-performing product sets.

Creatives

Next, ROI Hunter showed The Perfume Shop and Incubeta how to use the Template Editor (TEDI) to improve and automate their creatives. TEDI is connected to the product performance data from the PPM platform and makes it easy to create beautiful dynamic product ads without a graphic designer.

ROI Hunter helped create a framed creative, and then ran A/B tests that involved ROI Hunter’s business as usual (BAU) setup (a blank template with no creative enhancements or product sets) against their new framed creative.

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After just two weeks, the initial test saw an 82% uplift in conversion rate, a 21% drop in cost per acquisition (CPA), and a 20% uplift in return on ad spend (ROAS).

The team ran a second A/B test with ROI Hunter’s best-performing framed template against a seasonal template created by The Perfume Shop’s creative team, which followed all of their brand guidelines.

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After one month of testing, the ROI Hunter original framed template resulted in a 35% uplift in conversion rate, a 34% reduction in CPA and 42% improvement in ROAS when compared with The Perfume Shop’s template.

The Results

Results from initial tests were incredibly strong, with the first phase of tests driving an 82% uplift in conversion rate, a 21% decrease in CPA, and a 20% uplift in ROAS, when comparing the Excluding Low Performers product set to the previous business as usual setup.

The team also tested other various creative templates in ROI Hunter against each other. These results showed a 35% uplift in conversion rate, a 34% decrease in CPA, and 42% uplift in ROAS for ROI Hunter’s best-performing template.

Due to The Perfume Shop’s successful results, the ROI Hunter team has continued further testing to compare the performance of new product sets (e.g. Stop Loss), as well as more tests to help refine ROI Hunter’s templates.

All results were statistically significant at a 99% confidence level.

Yeeki Chan, Social Media Manager

"Our experience with ROIH has been extremely positive, with a goal to find a platform where we can easily adapt the creatives of our dynamic ad templates, and with the ROIH tool, we can even schedule template changes ahead of promotion periods without having to send our ads back into the learning phase on the platform.

The platform saved us time and allows us to be so much more efficient."

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