How Olukai established a new acquisition channel and increased AOV by 12% in less than 4 weeks
OluKai, a footwear brand inspired by the island lifestyle, launched a Shop Campaign to enhance their customer acquisition strategy. By leveraging the Shop app's features, OluKai aimed to address the challenges of rising acquisition costs and diversify their media spend. Find out how OluKai tackled these obstacles, implemented a solution, and achieved notable results.
Problem
OluKai faced the same challenges many brands are experiencing with their customer acquisition strategy, including increasing costs for every thousand ad impressions (CPMs) and costs per acquisition (CPA). Fueled by these challenges, the brand aimed to test new channels that would diversify their ad spend while maintaining an efficient customer acquisition cost. They sought a solution that could drive brand awareness, attract new customers, and provide a cost-effective alternative to existing channels.
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Solution
Recognizing the potential of Shop Campaigns, OluKai decided to integrate it into their customer acquisition strategy. They identified offers as a powerful tool that could efficiently acquire new customers while providing an intuitive and low-effort experience. A Shop Campaign can be set up in minutes, which lets the team quickly test and assess performance. This, coupled with the pay-per-conversion pricing, made Shop Campaigns an attractive channel to test over the holiday season.
[Shop Campaigns] is incredibly powerful from a new customer acquisition standpoint. It's incredibly easy to set up and it's very intuitive.
- OluKai
- Nick Daniels — Ecommerce Manager
Results
The implementation of OluKai's offer on Shop yielded impressive results over a four-week period and helped cement Shop Campaigns as a permanent fixture in their customer acquisition channel mix.
12% increase in AOV: Over the course of the holiday campaign, orders generated via Shop Campaigns had a 12% higher AOV compared to other orders.
Over 1,400 new customers: The Shop Campaign successfully attracted and converted over 1,400 new customers at a lower CPA compared to other channels in their advertising mix.
After our holiday campaign success, we've decided to make this a business-as-usual sales channel. We're investing in this on a weekly basis and testing out different CPA targets, minimum order values, and daily budgets as well.
- OluKai
- Nick Daniels — Ecommerce Manager
By adopting Shop Campaigns, OluKai achieved significant improvements in their customer acquisition strategy. The campaign successfully addressed the challenges of rising acquisition costs and diversifying ad spend while simultaneously driving brand awareness and acquiring a substantial number of new customers at a lower CPA.
OluKai's Shop Campaign showcased the power of the innovative tools within the Shop app and their ability to enhance customer acquisition. With Shop Campaigns, OluKai decreased their CPA, reached a wide audience, and gained over 1,400 new customers, reinforcing their brand's growth.
With Shopify Plus, Olukai saw results fast.
increase in average order value in 4 weeks
new customers in 4 weeks