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How Luxola increased its revenue by 317%

Luxola, a beauty e-commerce startup newly acquired by LVMH, is an online beauty destination that delivers products to people’s home. Luxola first launched in Singapore in 2011 and quickly developed into a cosmetics and skincare mecca, providing more than 4,000 products to customers throughout South East Asia, Australia, India and the UAE.

Background
Luxola quickly became a popular beauty destination with consumers, but the digital marketing models that were powering Luxola’s acquisition and retention strategies were lagging behind its savvy, e-commerce customers. The platform needed a sophisticated search and social advertising solution that could support this disruptive growth to help the brand reach a niche demographic, maximise conversions, and sell more to existing customers — all at a lower cost per acquisition. The beauty brand required a solution that could intelligently automate and adjust bids and budgets throughout the day to optimise conversions and reduce the manual nature of operations.

Execution
Luxola was able to become more agile and meet consumers expectations by adopting the Kenshoo Infinity Suite to increase efficiencies, automation, ROI and revenue.

The beauty brand used Kenshoo Personas to easily target and identify top key segments by saving and reusing libraries of its most profitable and influential audiences. Luxola also recently launched Kenshoo Intent-Driven Audiences (IDA) to leverage cross-channel insights and better inform its social targeting. IDA automatically creates Custom Audiences on Facebook based on the intent demonstrated through search engine activity. This way, Luxola can re-engage high-value audiences and also reach new customers via lookalikes.

Luxola was also able to increase conversions by automatically serving relevant ads to visitors who have expressed interest in particular products on its website using Facebook’s Dynamic Product Ads and Website Custom Audiences through Kenshoo. This is particularly valuable for brands with large product lines like Luxola. Using Kenshoo, Luxola created personalised ads for consumers who had added products to their shopping cart but hadn’t converted and retargeted those consumers with a 20 per cent off voucher, which drove them to revisit and purchase.

Results
In social, the number of checkouts for Luxola increased by 102 per cent in six months, increasing revenue by 317 per cent at an acquisition cost reduction of 27 per cent per checkout. Overall, social ROI increased 52 per cent in the same timeframe.

In search, click-through rates (CTR) have increased 100 per cent from Q2 to Q3, with CPC decreasing five per cent, indicating a more relevant audience is being engaged. Overall search ROI has increased 30 per cent due to efficient and automated optimisation in search advertising campaigns.

“To keep up with our consumers we needed an agile digital marketing solution that could intelligently respond to the varied and complex way our customers interact with our brand online. Kenshoo enabled us to seamlessly engage high value audiences with relevant ads across social and search to increase our online sales revenue in an efficient and scalable way,” said Andra Winatama, Regional Head of Performance Marketing (PPC), Luxola.

“Retailers can achieve tremendous benefits and results when automating and targeting their social and search advertising programs. Luxola has demonstrated that by increasing online conversions dramatically in a short period of time,” said Kenshoo Asia-Pacific and Japan Managing Director Yukihiko Imamura.

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Shubhi Tandon

Shubhi Tandon is the Assistant Editor at Digital Market Asia. Fascinated by the evolving digital media industry, she has focussed on tracking developments in the Asia Pacific market since 2014.
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