Fashion e-tailer ZOOT used Facebook’s Custom Audiences and lookalike audiences to effortlessly achieve its cost-of-sale target and reach the right customers in style.
ZOOT is the number one fashion e-tailer in the Czech Republic. With a Customer Satisfaction Rating of 9.5/10 and Deliverability of 99.9%, it significantly outperforms its competitors. ZOOT’s customer-centric approach combines the advantages of online and offline retail by targeting relevant consumers and building a network of ‘Try & Buy’ stores.
ZOOT had a firm benchmark for success. “Our activity has to bring 4 times more than our investment,” says CEO Ladislav Trpák. That meant 2 essential campaign factors: efficiency and effectiveness. How could ZOOT achieve a large number of visitors and the required return on investment? By using the power of Facebook’s targeting tools.
The business learning is that when you use Facebook smartly—not only for remarketing,but to search for new potential customers via lookalikes audiences to give you traffic at scale—you can get even better results than with Google.
To reach the right audience with the right messages, ZOOT turned to Facebook’s Custom Audience and lookalike audience targeting. “Custom Audiences tell us what category of product is visited by whom,” says Karel Tlustak, CEO at Business Factory. “That means we can deduce what product is more likely to be successful and we know what to promote.”
ZOOT’s team then created a lookalike audience based on people who shared similar characteristics to Facebook customers who had visited its website, whether they bought a product or simply browsed. “So we are not only remarketing to original visitors: we are bringing in many more visitors who are similar to them,” explains Tlusťák.
Finally, Business Factory connected ZOOT’s Facebook ad account to a tool called ROI Hunter, which automatically creates a variety of ads for the News Feed before evaluating the best performers and killing the least successful ones.
“But the News Feed ads are usually not just a picture of a product,” says Tlusťák. “It’s something that people can interact with. We’re more focused on engagement as far as the News Feed is concerned.”
Thanks to its smart use of Custom Audiences and lookalike audiences in December 2013, ZOOT effortlessly smashed its target, coming in at 10% cost of sale and achieving a 5.9X return on investment. Those results looked even better when measured with Facebook’s conversion pixel tool: tracking conversions in this way helped ZOOT achieve an incredible 10X return on investment.
Business Factory made a further discovery when the team looked beyond last-click to multi-touch attribution. “What’s quite interesting is the comparison between Facebook and Google,” says Tlusťák. “They are similar as far as last-touch is concerned, but when we see assisted conversions, Facebook is much more effective—even with small traffic. Assisted conversions were 3 times higher than Google.”