Caraway earns $1MM in revenue at a fixed CAC with Shop Campaigns

Caraway is a leading cookware brand offering non-toxic, high-quality, and well-designed kitchen goods. As part of their growth strategy, they wanted to optimize their customer acquisition efforts through various channels, with a focus on mobile shopping. Discover how Caraway's Shop Campaign addressed their customer acquisition challenges while delivering impactful results.

Problem

Caraway faced several customer acquisition challenges, including rising costs, ongoing competition, and the negative impact of privacy changes introduced by iOS 14.5. Additionally, they found it challenging to accurately attribute new customer growth across channels and campaigns. The team needed a solution that could efficiently acquire new customers while maintaining profitability and scalability among their mobile-first audience.

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Solution

Caraway implemented Shop Campaigns, an innovative customer acquisition tool within the Shop app, to address their customer acquisition challenges. Shop Campaigns provides exclusive offers to first-time customers, incentivizing them to make a purchase by boosting the value of their Shop Cash. Having already used Shop’s branding customization and merchandising tools for their mobile storefront, the team wanted to expand their brand presence in the app and experiment with Shop as an acquisition channel.

On initial set up, Caraway appreciated the ease of customization and implementation for their Shop Campaign. The streamlined process eliminated the need for extensive web development or pixel tracking, letting the marketing team quickly launch and adjust campaigns. This simplicity was a significant advantage compared to other channels, which often require more time to set up and ongoing resources to maintain.

The team was particularly impressed and appreciative of the direct attribution for new customers, especially because these customers were already using Shop Pay, making them higher quality acquisitions with better lifetime value (LTV). Being able to confidently acquire new customers at an efficient cost earned Shop Campaigns a permanent position in the brand's acquisition portfolio.

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Results

Over the course of 2023, Caraway was able to impactfully drive incremental first-time customer acquisition and improve the efficiency of the brand’s acquisition efforts.

By using Shop Campaigns, Caraway achieved their goals of reducing acquisition costs, increasing brand exposure within the Shop app, and driving significant growth in orders. The campaign's success can be attributed to the strategic implementation of exclusive offers to incentivize first-time customers, as well as the ease of implementation and minimal upkeep required for Shop Campaigns.

Caraway's Shop Campaign solved their customer acquisition challenges. By leveraging exclusive offers within the Shop app, Caraway decreased their CPA, increased brand visibility, and drove sales.

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