Reducing CPA for Pai Skincare by 73%

The Challenge

When Pai Skincare approached Flourish, although CRM platform Ometria was in place there wasn’t any audience segmentation or differentiation in customer journeys. Instead, all of Pai’s customers were being treated the same. Over time, with ambitious sales targets to hit, Pai’s strategy had become to simply flood customers and prospects with discounts and promos to prompt re-purchase and purchase. Both the brand and Pai’s skin consultation services were being seriously devalued. In addition, with more and more sales relying on discounting, CPA was skyrocketing. 

The Solution

CRM Implementation

A review of Pai’s data identified a significant number of people that had made a purchase but not re-purchased. To reduce CPA we needed to re-engage these customers and prompt them to re-purchase. 

We used Ometria’s Predictive Attributes to identify behaviours that indicated customers who were currently classified as ACTIVE but were about to become AT RISK or LAPSED based on the dates since their last purchase. Customers who have not re-purchased within 160 days are automatically served a re-activation email journey highlighting the quality of the products and value of the services on offer from Pai. Followed by a re-purchase journey. 

Crucially these email journeys featured a ‘full price first’ approach to re-engagement through a meaningful message at the right time. In later emails customers received low discount ‘bundle offers’ to increase incremental spend. Only as a last resort were promos and incentives used. 

Media Strategy

With the new CRM journeys in place, Pai had both the insights and confidence to pursue a ‘full price first’ media strategy. 

Instead of website visitors who hadn’t purchased being retargeted with ads containing discounts, they were retargeted with product focused messaging highlighting the quality ingredients, product benefits and range. In addition, we were able to overlay demographic performance data gained from the CRM activity to show our ads to the most high-performing segments. 

Visitors who viewed specific product pages were served specific product focussed ads. Those who had browsed multiple pages were served product range ads. Both audiences were served product bundle ads as a way of promoting sales through perceived value, rather than purely discounting. 

For cold audiences CRM data enabled us to build out custom audiences using attributes including age, location, and online behaviour. Product specific ad campaigns were created based on historic conversion rates and sales volume, allowing us to only advertise products that we knew converted well from specific media channels. 

The Results

Pai have boosted repeat sales from existing customers and first time sales from new customers at the full RRP. As a result, Pai has seen CPA reduce by a whopping 73%. 

The learnings and insights that we utilised from CRM to inform the media strategy meant that the retargeting and acquisition activity saw an improved engagement rate of 96% for product focused ads compared to the previous 6 month period, and a conversion rate of +4.84%. 

The customer experience was greatly improved with a customer journey that deepens the relationship between the Pai brand and its customers, rather than relying on a transactional relationship based on heavy discounts and promos.