Facing rising inflation and a 60% increase in customer acquisition costs, Petstop needed new and innovative digital marketing strategies to increase revenue, retain customers and drive business growth.Using a combination of paid social, email and leveraging AI to create relevant content as well as introducing a more personalised subscription service, we were able to assist them to attract new customers and boost repeat purchases among existing customers.
With rising inflation impacting user spending habits, a 60% increase in customer acquisition costs, and steady year-over-year marketing investment, Petstop were looking for new ways to grow their customer base and generate more revenue.
The marketing objectives were twofold:
To achieve our marketing objectives, we used paid social ads and leveraged creative to deliver relevant campaigns to attract new shoppers efficiently. Top of funnel campaigns pushed the brand's reach outside our retargeting or CRM database, while lead generation campaigns allowed us to gather high-quality leads to nurture via email marketing.
At this stage, it was critical for our lead gen forms to capture additional data points, allowing us to collect valuable first party data that would help us cater to each user's preferences. With this additional data we were able to segment our audiences by pet type and understand their specific needs.
With this information feeding into our automated email workflows, new users were treated to additional personalisation through engaging emails to nurture and convert them to first-time customers, enhancing their experience and allowing for better conversion rates.
For existing customers, we applied personalisation through subscription service messaging at the end of every email. This message was shown dynamically using ‘show-and-hide logic’ based on their subscription status. Each subscription offer was tailored specifically to each customer based on their first party data, making it more relevant and attractive.
To deliver a compelling creative-led campaign that would acquire higher levels of new user engagement, we needed to get a better understanding of our current user base. We developed a new innovative approach, coined ‘Review Mining’, utilising the latest Custom GPT Technology to analyse vast amounts of customer reviews at speed, turning them into valuable insights we could leverage into our paid social content.
With our custom GPT’s, we were able to identify key elements of our existing buyers' behaviours, pain points, triggers and commonalities based on the already acquired Trustpilot reviews. AI helped us speed up the process of grouping our reviews into common themes, something that would be time-consuming if not impossible otherwise. We took these insights and through our social ad creative, turned them into powerful messaging angles for our brand awareness campaigns. We were able to ensure that our communications and messaging resonated with our potential customers, increasing the likelihood of conversion.
With the integrated approach of paid social ads, email and “Review Mining” using AI, we were able to deliver a more personalised experience to Petstop’s customers. This in turn enabled us to achieve the key objectives of increasing revenue and customer subscriptions.
Our initial objective was to increase revenue from new users by 10% and subscriptions by 40%, however the campaign was so successful that we increased revenue from new users by 12% and subscriptions by a whopping 86%.
Increase in revenue from new users
Increase in subscriptions Year on Year
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