How Country Road’s Facebook Ads Achieved 18x ROI

July 25, 2016

One of Australia’s largest fashion retailers, Country Road, has released stats showing their returns on investment on Facebook advertising during the last Christmas period. And the numbers are massive.

For every dollar Country Road spent on Facebook ads, they received $18.20 in revenue (and most of this was collected in-store, as opposed to online). With such a huge return like this, it’s no wonder Country Road labelled this as marketing done right.

Other businesses can learn from this success story, too. Here, we list our takeaways on how to best leverage Facebook marketing to your advantage.

The online/offline divide has been bridged

The campaign generated five times more revenue in-store than online. Even though the ads only appeared on the internet, it was clear the audience was taking note, then going into their nearest store to purchase, rather than pull out their credit card to buy online.

The divide between physical and digital is not as clear-cut as it once was, and consumers seamlessly transition between the two, Country Road marketing manager Paul Conti explained to AdWeek.

Customers don’t simply see an ad on Facebook and buy from the online store; in this case at least, they are more inclined to purchase offline when they see a digital advertisement. Marketers then are able to link on- and offline marketing to fine-tune the sales funnel. Here, Country Road have set in place strategies that seamlessly take their customers from the internet to the store.

Segmentation, segmentation, segmentation

In his interview, Paul Conti stressed the importance of personalisation at scale, or grouping customers into large subsets based on their interests and demographics. This is effective when you need to segment your users and present the perfect ad to suit their tastes.

In their Christmas Facebook advertising campaign, the iconic Australian retail group created a campaign that would appeal to loyalty card users. They knew that their customers would be online during the lead-up to the Christmas period – all they had to do was figure how to target them.

The ads appealed to those who knew Country Road and its brand. They weren’t designed to introduce the benefits of shopping here – the customers already knew this – but rather to get them to return to the store.

Clearly, their ads worked. With a ROI of 18 times the original cost, the whole campaign was a success.

Pay attention to your in-store branding

You’d be forgiven for thinking that digital is paramount these days. You may even consider shifting all your sales online, foregoing the need for a physical store.

What the Country Road case study tells us, though, is that the physical store still matters, especially to on-going customers. These people sought the experience of being in the branded environment, something they would not get online. Use digital as the gateway to attract customers to your store.

But data is not everything

The study also raises tensions about the distinction between data-driven programmatic advertising and entrancing customers with new discoveries. By limiting advertising to items similar to customers’ past purchases, a store might be missing out on sales in the future. After all, tastes change and customers might want something new.

The retailer’s goals were threefold: Raise brand awareness, drive online sales and increase in-store sales. In all, they were able to promote Country Road as the ultimate shopping destination during the six-week Facebook ad campaign.