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Retail

Here's How Sephora Used Best-sellers to Increase ROI by 43%

Sephora is a world-renowned beauty brand, operating over 2,500 stores across 32 countries. The brand expanded to Brazil in 2010, and since then, their online presence at sephora.com.br has become the main website for perfume and cosmetics throughout Latin America. 

With Brazil’s e-commerce market heating up due to the effects of COVID-19, Sephora Brazil wanted to make sure they would be able to maximize their Black Friday results. For that, they spoke with long-time partner ROI Hunter to form a new strategy.

-17%
spend
+14%
Revenue
+43%
ROI

the challenge

Sephora’s Brazilian e-commerce site is large and popular, but there were still improvements needed in order to truly optimize the dynamic campaigns they were running. Sephora wanted to increase their revenue; they wanted to realize a greater ROI from their campaigns. 

To achieve this, Sephora needed deeper insight into the performance of their products and a method for using that insight effectively. They also needed a way to apply these changes at scale.

the solution

ROI Hunter began by setting Sephora up with Product Insights. The Product Insights feature gathers product-level data from across channels, combining it within ROI Hunter to form a single source of truth. This provided Sephora with several advantages:

  • Integrating the information into one area made it simpler for Sephora to use data from Google Analytics to inform their Facebook campaigns (and vice versa).
  • Having access to product-level data gave Sephora an understanding of the true performance of each of their products, rather than just the macro-level understanding of the success of the promotion.
  • With the new wealth of data, Sephora was able to filter their catalog for whatever metric they could think of, which made it easy to create product sets optimized for specific goals (e.g. bestsellers, most profitable, etc.), and keep the sets automatically updated when new items were introduced.

Sephora used Product Insights to find their top 20% best-selling products according to Google Analytics, then created a product set from them for use on Facebook. By creating this separate product set of bestsellers, Sephora was able to control which of their items were receiving promotions. They could ensure that customers would only see promotions for Sephora’s most popular items during Black Friday week prospecting, thereby increasing the chance of a conversion. 

Next, Sephora used ROI Hunter’s Template Editor (TEDI) to create a special template for Black Friday actions. TEDI makes it possible to create dynamic ads in minutes without a graphic designer, but it also offers the option of scheduling promotions out ahead of time, and of applying if/then conditions.

sephora ads v2

the result

With their bestseller product set defined, and a Black Friday template optimized for ideal performance, Sephora was able to make dramatic improvements to their Black Friday prospecting. First off, they ended up spending almost 17% less on promotion, but increased both revenue and number of transactions by 14%! Even better, at the end of the campaign, they saw an increase in ROI of 43%.

-17%
spend
+14%
Revenue
+43%
ROI
sephora logo png
Media Team Sephora 2020: Camila Pimenta, Lana Silva, Leticia Amato e Lucas Emiliano

ROI Hunter was an important piece in acting efficiently and covering campaigns in an assertive way, taking into consideration all the volume that we would have to work on for the black Friday of 2020, a period of time so short but so important for the sector and through the optimizations everything became more fluid and thus leading us to the incredible results that we have obtained.

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