When it came to boosting its customer base during the holiday shopping season, apparel retailer Banana Republic didn’t monkey around, using Facebook’s lookalike audiences to achieve a return on ad spend that was four times higher than via other advertising channels.
Banana Republic also saw click-through rates from its use of lookalike audiences that were 60 percent higher than those from other display media.
The retailer described its campaign in a Success Story on the Facebook for Business page:
To execute this acquisition campaign effectively, the retailer worked hand-in-hand with digital performance based agency Booyah! Advertising, as well as its internal e-commerce, CRM (customer-relationship management), creative, measurement and brand teams. This collaboration allowed Banana Republic to identify characteristics of consumers who tended to buy more from the retailer and create compelling ads that would speak to these target segments.
Banana Republic designed its creative to attract attention as people were scrolling through Facebook News Feed. Choosing photo ads and link ads, the retailer tested different creative images and messages.
Ann Cleveland of Banana Republic’s global media department said:
Facebook’s custom audiences was a way for us to identify our best customers, lapsed customers and prospects, and then build lookalikes specifically against each group. Facebook also has massive reach. Once we were able to prove that this test worked, we were able to scale to where it actually brought in enough incremental sales to contribute to the bottom line.
And Emily Schubert, director of digital channel marketing for Banana Republic parent Gap, added:
The custom audiences and lookalike targeting tools are compelling because they integrate social graph data with traditional behavioral and demographic information. The added social profile data means that Facebook can help us reach a target audience based on our top customers, not just anybody that converts on our website. We can then tailor our offers and messaging to drive results.