The Results
+20%
Average order value
+23%
Improvement in conversion rate (all sources)
X2.8
Return on ad spend (Meta)
The Brief
Babbico is a DTC brand selling luxury baby clothing and accessories online. The brand appointed Target to support with paid social and creative strategy to help improve performance ahead of a raising a round of investment. Historically, Babbico has had challenges getting spend through its Meta Ads account in an efficient and scalable manner.
Our Response
Our initial audit found two fundamental challenges that needed to be addressed before we got under the bonnet of Meta Ads. Firstly, conversion rate (CVR) across all channels was below industry benchmark and average order value was to continue acquiring new customers profitably. To address CVR, Target shared a series of CRO advisories including a reconfiguration of the nav, improved merchandising of the homepage, addition of size filters for faster product discovery and removal of friction at checkout (e.g. tick boxes). To tackle the low AOV, Target worked with the Babbico team to begin creating bundle offers of 3 x rompers with unique campaign landing pages to drive up average over value. We were now ready to begin tackling Meta Ads with a focus on pushing romper bundles to win new customers and deliver more contribution for the business. Target pivoted the bid strategy from highest volume to cost caps, ensuring that Babbico only served ads when Meta could deliver a sale at our desired rate of efficiency. The Target creative team worked to produce an increased volume of creative assets and collaborated with a creator on UGC assets to support this.
The Results
As a result of product bundling tactics, AOV increased by +20% during Target’s time with Babbico. Website conversion rate also improved by 23% and we were happy to help Babbico achieve a much improved X2.8 ROAS using cost caps on Meta Ads.
The Next Steps
The costs and time commitment associated with producing creative at scale were admittedly a sticking point for the brand whilst results were improved, the decision was made to in-house these skills in order to make a cost saving. Target has supported this transition.
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