Discover how Cratal used advanced data analysis to improve the Brand’s E-commerce sales and improve Return on Paid Advertising spend. Cratal also helped them to create an omnichannel presence across digital platforms.
Maximizing ROAS by 40% of Health and Glow by boosting conversion rates
Improve Brand Health
Case study subject
Achieving the Optimal Media Mix
With the boom of Ecommerce in India, Health & Glow wanted to sieze the opportunity to gain market share though its online sales drive profitable growth. The challenge was thus to find efficient ways to increase revenue share from ecommerce front.
Health & Glow is a Beauty and cosmetics products retailer and compete with brands like Nykaa, Loreal, Purplle, Sugar Cosmetics in the online E-commerce domain. It was important for the Brand to increase its online sales in this highly competitive environment. The challenge was to increase the online sales of Health & Glow and improve the revenues by optimising the Marketing Ad spend. Being a highly competitive market with competitors having huge marketing spends, It was important for us to identify few high-quality products which serve a particular niche with high-profit margins. So instead of competing with volumes, we decided to spend more advertising budget on the most profitable products and not compete with market prices.
About the Brand
Health & Glow is one of the leading beauty and wellness brand in India. Starting in 1997, Today Health & Glow has emerged as one of the largest networks of beauty and wellness products with over 160+ stores across Bengaluru, Chennai, Hyderabad, Cochin, Mumbai, Pune, Kolkata, Bhubaneswar, Mangalore, Manipal, Coimbatore and more. Health & Glow provides an unmatched and an ever-increasing assortment of skin care, hair care, makeup and wellness products for both men and women.
Maximise ROAS - The existing Advertising spend generated, a return of ~10% which was significantly less compared to the industry benchmarks. The main goal was to increase the return on advertising spend by upto 40%.
Improve Brands’s ecommerce Health - As Health & Glow’s offline presence was quite strong, we focused on creating a strong ecommerce brand.
STRATEGY AND EXECUTION
A Sophisticated 3-Phased Approach
Cratal’s solution was to develop a sophisticated analysis utilizing advanced regression-based modeling to quantify performance media’s impact based on historical brand data and industry benchmarks.
Cratal gathered data from numerous sources including Brand Health Tracking data, historic media performance across all paid platforms like search, social, and display, and more.
Improving Product Feed Quality
First, We started identifying key products which were strong performers in the past for Health & Glow. The evaluation was conducted on those Products' Feed Quality. Titles were checked so that they included brand name, color, size and other relevant parameters that are important to increase reach and CTR. Google product categories were added when missing from the original feed or improved when they weren’t specific enough.
Second, the feed was enriched by mapping the product margin of different categories and adding it as a custom label in the Customer Relationship Management (CRM) portal for Retargeting Purpose. Based on this mapping the actual net income from digital sales could be better understood and acted upon, also making it easier to prioritize which products to advertise.
The new improved product feed was used across a wide range of digital marketing channels, including Google Shopping, Facebook Ads, price comparison sites and affiliate networks.
Optimize the Mix
A new Google Shopping campaign structure was implemented based on the new priority and margin labels were assigned to the CRM. This created a strong Retargeting and Remarketing, thus building a robust sales funnel.
3 MAIN COMPONENTS TO OUR SUCCESS
1. Facebook Carousel Ads - We started testing various strategies and found that carousels worked best to showcase individual products and act as an actionable. Basically what we did was just let Facebook algorithm work, to identify lookalike audiences based on interest and past purchase history. This allowed us to offer our best products to our best/targeted audience.
2. Optimising Google - At the outset, this was our main channel, our highest spending traffic source, yet it was restricted to how much we can scale. Nowadays, the Google marketing channel is very reliable bringing solid returns of around 3.5X - 4X ROAS every month.
3. Boosting Conversion Rate - When we started working with our client in November 2020, Their conversion rate was around 0.3% and we managed to get it up to 2.4% in under a month.
During the first three months of working with Cratal
Reduce advertising costs by -35% - focusing on the most profitable products
Increase traffic by +18% - Higher relevance of Shopping titles/categories
Reduce CPO by -23% - More relevant traffic
Increase ROAS by +40% - More relevant traffic and lowered costs