NATIONAL PET RETAILER REACHES NEW CUSTOMERS ACROSS BUSINESS SEGMENTS with PREDICTIVE ADLUCENT INDEX™ DATA
A popular national pet retailer focusing on improving the lives of pets and pet parents came to Adlucent looking to reach new customers and grow sales, specifically for two of their product categories. As a result, Adlucent implemented its proprietary technology, Adlucent Index™, to prioritize new customers in automated bidding while keeping their customer acquisition cost (CAC) down by customizing how shopping ad campaigns are optimized.
This client wanted to grow the business and realized there was room for improvement on the performance side of its digital advertising program. They looked to Adlucent to leverage our retail expertise, paid search experience, and our purpose-built digital advertising platform to reach new customers and grow sales. They also sought a way to communicate with their internal teams more effectively and provide more granular data.
How Adlucent Helped
Adlucent’s proprietary technology, Adlucent Index™, leveraged our client’s internal customer data and customer journey signals to forecast expected lifetime value (LTV). By feeding Adlucent Index™ data into Google Ads, our team created predictive custom conversion actions. These Adlucent Index™ conversion actions worked directly with Google Smart Bidding technology to drive performance that aligned with the pet retailer’s business goals.
This, combined with our other proprietary technology, Deep Search™, also changed how this pet retailer provided data to their teams; what would usually take weeks to get now took half the time while providing better data.
Our test of incorporating predictive Adlucent Index™ data on the pet retailer’s Google Ads campaigns took a total of eleven weeks and compared equal periods of pre-post campaigns; Adlucent Index™ was launched for the two product categories in spring 2022. In this test, we used a combination of Google product listing ads (PLAs) and local inventory ads (LIAs).
For the first product category, after implementing Adlucent Index™, we saw new customer growth outpace incremental spend, with new customers increasing by 9% and cost decreasing by 17%. We also saw new customers hitting YTD highs at the lowest CAC at -17%.
For the second product category, implementing Adlucent Index™ showed acquisition cost declining even as new customers increased, with CAC at -10%. We also saw new customers increase by 20% and cost decrease by 7% during this test.
After rolling out Adlucent Index™ across all categories for PLA & LIA we continued to see performance improve despite a 11% decrease in average weekly spend. We have been able to maintain average weekly new customer levels while still decreasing CAC by 11%.
Adlucent is the performance marketing agency that proves outperformance has no limit. Powered by our purpose-built platform, Deep Search™, Adlucent unifies the best of human and machine for a scientific approach to marketing. We work transparently in partnership with B2C and B2B retailers and brands to create custom, predictive programs that drive ever-better outcomes. Our services include paid search, shopping, social, retail media networks, display media, video, performance creative, consulting, and measurement. Headquartered in Austin, Texas, Adlucent is part of Advantage Solutions and ranked one of the top marketing companies in the U.S. by AdAge.