Luppino Gioielli - "High ticket" Jewellery brand | +42% in revenue from Q1 to Q2

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Key Results

Conversion: 90 consecutive days with 12+ Roas for the FB retargeting

Revenue: almost +50% in just a Quarter

Klaviyo: over 44% of revenue from Klaviyo automation

Brand description

Luppino Gioielli is historic Italian jewelry, which has always been present in the area thanks to its physical store that decided in 2020 to launch online, opening its store on Amazon.

After the first sales on Amazon, having seen the potential mainly due to the exclusive products treated, proprietary eCommerce was created to reduce Amazon’s commissions and have a proprietary system.

The Initial Situation

When Luisa, the owner, contacted us she was very clear: eCommerce was not bringing the desired results despite the economic efforts.

After a Discovery Call, we analyzed the data on the Business Manager to create a detailed and precise report of what was happening and reporting all the critical issues that had to be solved to make the eCommerce profitable.

The key problem? The Ads were managed by the same Creative Agency that had created the site.

There is a very serious problem in the market. There are numerous Web Agencies and Creative Agencies trying to sell useless and underperforming services to their clients.

We only take care of one thing and we do it damn well.

As you can see from the Business Manager, some campaigns were created with two objectives: “Traffic” (in red) and “Conversion” (in green).

A false myth says that before launching Conversion campaigns, it is important to make a campaign for Traffic to "train" the Pixel. In addition to not being true, it creates a significant problem with Custom Audiences and the Pixel. Traffic campaigns are optimized to find audiences who tend to read and/or visit the site, which generates traffic.

If our Audience is based on people who read articles or generate traffic, and we decide to set up an Audience Lookalike, Facebook would - again - get people who tend to read and visit websites, without buying.

If we retarget the "traffic" audience, the results will be really bad: you cannot convert people who are not supposed to convert even if you retarget them. You have to retarget "conversion" audience to convince them to complete the purchase.

The result of the Traffic campaigns is clear: $764.96 was spent, there are 9 Initiate Checkouts and 0 sales attributed to the campaigns.

The result was different for the campaigns with the Conversion objective, which had some sales but still not enough to cover advertising costs or the cost of management.

In general, as you can see from the screenshot, around $2058.43 was spent, with a return of $905.1 and a loss of over $1000.

One of the Conversion campaigns, the one with $953.07 AD spent did not lead to any sales. The reason is precisely what we have reported above: a Lookalike Audience was created based on on-site visitors - mainly from Traffic campaigns.

After analyzing the campaigns, we moved on to analyzing the sales funnel.

The thing we noticed is the confirmation that the campaigns were not structured correctly: only 5% of users who viewed a product (Content View), decided to add it to the cart.

About 4000 people saw a product but only 20 were purchasing, this led the Funnel to have a conversion rate of 0.55%, an extremely low value compared to our benchmarks.

Our goals were clear:

We needed to be able to bring higher-quality traffic to increase the Funnel Conversion Rate.

It was necessary to introduce a well-defined structure, with a TOFU, a MOFU and a BOFU campaign.

We needed to introduce tests on Interests and Creativity understand the target audience better and carry out specific campaigns.

Not just Cold Sales: we had to study a Retargeting strategy that will increase Customer Lifetime Value over time, to lower Acquisition Costs.

Facebook Ads was the only active traffic channel; it is difficult to buy jewelry impulsively. For this reason, we had to look for other acquisition channels.

Facebook Ads + Google Ads and Strategy

We started to make some different hypotheses:

What’s the most profitable age? (We assumed that women were the right target, except for particular events eg. St. Valentine).

Why trust on buy from our store rather than go directly to a jewelry store?

What kind of content work best? Single product contents or DPA (Dynamic Product Ads).

Is their funnel correct? Bottlenecks to be improved.

After we had applied our framework we discovered our most profitable audience (in this case people interested in luxury goods and a classic broad audience). We went through all the data with a breakdown of ages and a comparison with the effective sales from the store. We discovered that the demographics 35-54 had almost double of CTR/outbound and the ROAS was way higher.

We directly took off the other demographics. The move resulted victorious: from barely reaching the Breakeven ROAS we started to make profits.

After that, we build up the correct audiences and with the right campaign structure, for testing audiences: TOFU (Top of the Funnel) campaign was created, excluding the Hot Audience, typically present in the MOFU (Middle of the Funnel) and BOFU (Bottom of the Funnel) phases.

The results weren’t good enough. There were profits but just a few.

Here we got the idea that the best move to increase sales in general and above everything from the retargeting phase (that for high ticket goods is crucial) was Google Ads.

Our Google Ads Expert took care of the store from that side.

After two weeks, the sales were already way better. Furthermore, he discovered that installment payments for jewelry had lots of research on Google.

We implemented “Klarna” (a system that can make customers pay with 3-4 installments) and we changed the communication basing our claim on the possibility to buy expensive jewels with 3-4 small payments.

Here is where we started to make huge profits.

The retargeting phase started to give back 12+ ROAS at the beginning and after three months, it’s still 8+, thanks to the high-quality traffic from Google Ads and the new claim.

We tried even a DPA with a broad audience using that claim. The image below will show the results after 90 days (even after iOS 14.5)

We are still testing new creativity (refer to the Creativity Approach paragraph) and new possible segments of audience, keeping the same winning claim with good profits.

The final budget allocation was 50% TOFU (from Google and Facebook) and 50% retargeting only from Facebook; Google didn't give any good results.

As we thought from the beginning the retargeting part here is playing a fundamental part, that's why we decided to elevate the automation to the next level with our team and the client.

Retention Marketing

After analyzing the situation, we decided to implement the following Flows:

Welcome Series: a welcome series is a sequence of messages (SMS and email) sent directly after someone signs up to hear from your brand.

Thank you Flows: sending post-purchase emails is essential for growing your brand. They turn a shopper into a loyal and repeat customer.

Experience/Product review Flows: after someone purchases a product, you may want to ask them to write a review about what they just bought. This is a great way to build social proof and drive customer engagement with your brand.

Customer Winback Flows: a winback flow is a series of emails sent to customers who previously engaged with your brand, but have not interacted with you for a certain period of time. This flow is an essential part of customer retention and lifecycle marketing.

Browse Abandonment Flows: browse abandonment emails are similar to abandoned cart emails, but are triggered when an identifiable browser visits a product page and does not start or complete a checkout.

Cart Abandonment Flows: Abandoned cart flows are among of the most valuable flows for any eCommerce business. They’re a message or sequence of messages sent to someone who added an item to their shopping cart but failed to complete the purchase.

These are the results after 30 days

Results in 90 days* (we stopped a month for products unavailability in August)

From November we started with Campaigns. The one below is the first sent + Black Friday (3 mails in sequence with a countdown 26 - 27 - 28 November and 2 newsletter form December (Christmas and Jewel of the month).

Creative approach

After the Facebook test results, we went 90% Dynamics and 10% with statics creatives. The reason is that Google ads are bringing high-quality traffic and we convert them with DPA.

So most of the creatives are Dynamics with frames on them (like the one below).