Case Study: Online boutique, The Luxury Closet, reduces CPC by 50% and boosts conversion rate by 45% with Google Smart Shopping Campaigns

Angela Hundal June 2019

Smart Shopping-driven campaign by online retailer uses machine-learning algorithms that recognize the way people interact with sites to strategically reach potential customers and actively drive leads and sales throughout the customer journey.

About The Luxury Closet
A leading online boutique that buys and sells new and pre-loved luxury items
Based in Dubai
Formed in 2011
Showcases more than 28,000 unique pieces from top luxury brands including Louis Vuitton, Chanel, Van Cleef and Arpels, Cartier, and Rolex, to name a few
Delivers globally
Goal
Increase leads and sales, double the conversions at the same cost
Approach
Employ Google Smart Shopping campaign’s machine-learning algorithms to reach users along the customer journey – from Search to Shopping, YouTube to Gmail and the Display Network – and drive leads and sales
Results
Cost per conversion halved, with the average conversion rate increasing by 45%

 

Moving towards smart shopping campaigns

Based out of Dubai, The Luxury Closet is a leading online boutique that sells new and pre-loved luxury goods – from handbags to watches, clothes to jewellery – designed by the world’s most prestigious fashion brands. Since 2011, the company has grown from a three-member team to one made up of over 100 fashion-savvy people. The brand is continuously looking to add, improve and disrupt the online boutique business model, which is one of the reasons why it partnered with Google for one of its latest digital marketing campaigns.

“Our primary goal was to drive leads and sales online, moving away from traditional online shopping campaigns and looking to Google’s Smart Shopping campaigns instead,” Pablo Durante, Chief Marketing Officer, explains. 

Automatically combining shopping, display remarketing and prospecting to drive sales across Google Search, Shopping, YouTube, Gmail, the Display Network and more, Google’s fully-automated Smart Shopping campaigns draw on machine learning and algorithms to automate bids and ad placements, manage ad creation based on the way customers interact with sites, and target and allocate budget across all networks. This leaves the retailer with more time to focus on actually running their business. Another added benefit of Smart Shopping campaigns is that retailers can use existing product feeds to source creative content. That means, if they’re already running shopping campaigns, they don’t need to create additional collateral. 

 “These benefits made so much sense to us,” Matteo Toniato, Performance Marketing Manager explains. “By implementing Google’s Smart Shopping campaigns, we not only simplified our campaign management and freed up more of our time, but we also boosted our performance.” 

Smart Shopping campaign reduces CPC by half and ups average conversion rate by 45%

Allocating the same budget that the business was spending on traditional shopping campaigns, The Luxury Closet was able to increase conversions as well as conversion value significantly. 

“Aside from being easier to set up and run, Smart Shopping campaigns were also much more effective in terms of performance. Using data-driven algorithms to understand which products to serve clients helped us maximize our campaign profitability, with our CPC dropping by 50%, and the average conversion rate increasing by 45%,” Tommaso Centonze, Account Manager said.

While The Luxury Closet initially tested the Smart Shopping campaign in only one of the 14 countries in which they advertise, its effectiveness has convinced the business to activate Smart Shopping campaigns in all markets and advertising jurisdictions soon.

“We’d also like to test out other Google Ads solutions that take advantage of machine learning,” Matteo Toniato, Performance Marketing Manager adds. “We recently started a trial using Smart Display Campaigns, and we plan on expanding our tests based on the positive results we’ve had so far.”