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E-commerce Brazil

Raia Drogasil’s ROAS increase knocked it out of the park.

RD (or Raia Drogasil) is headquartered in São Paulo and is renowned for being the biggest drugstore company in Latin America. The company owns more than 2500 stores across 24 Brazilian states and operates in e-commerce through its brands, Droga Raia and Drogasil.

+395%
higher revenue
+466%
return on ad spend
+254%
more app installs

The challenge

Challenge 1

RD had a problem: Facebook’s algorithm was simply not promoting their best-selling products. In fact, after studying several of their own clients, ROI Hunter found that in general, Facebook’s algorithm focuses about 50% of all impressions on just 1% of the products in a retailer’s catalogue

While comparing Facebook’s promoted products to the products generating the top 10% percent of revenue per Google Analytics, ROI Hunter noticed that RD was investing just 7% of their monthly budget into promoting items that were responsible for 80% of their sales revenue.

With these numbers, it was clear that RD was losing sales opportunities for many of their best-performing products. The hope was that, by teaming up with ROI Hunter, RD could greatly improve their Return On Ad Spend (ROAS) and revenue.

Challenge 2

RD doesn’t shy away from a challenge, so when their commercial team raised the bar to improve their app sales, RD’s marketing team was eager to find new opportunities to scale sales. That’s when they turned to ROI Hunter to help them find new ways to scale, with the goal being to improve their ROAS and revenue in app sales.

The solution

Campaign 1

RD was already connected to the ROI Hunter Product Insights feature, which gathers product-level data from across a retailer’s channels and combines it with their catalogue within the ROI Hunter Product Marketing Platform (PMP). Since this data is integrated from multiple channels, Product Insights makes it easy to create data-driven product sets based upon info from a holistic single source of truth.

Since RD needed to increase the reach of their best-selling products, they used ROI Hunter’s “Hidden Gems” use case, which finds products with a low number of impressions on Facebook, but a high number of transactions per Google Analytics. 

In this case, RD used the Hidden Gems use case to filter for products that had less than 1000 impressions on Facebook, but that were in the top 10% of revenue in Google Analytics. They then created a Dynamic Ads for Broad Audience (DABA) campaign using their findings from Hidden Gems.

Campaign 2

RD had high hopes for their app sales, so they took advantage of the ROI Hunter Template Editor (TEDI), a tool that enables marketing teams to create beautiful dynamic ads without needing a graphic designer.

For this campaign, RD used the data from ROI Hunter’s Product Insights tool to find their bestsellers (products in the top 10% for revenue in Google Analytics) and create a bestsellers product set from them. From there, RD used a special template from TEDI with a sticker over the price that read “Check price on the app.”

This template strategy works to arouse curiosity in users and encourages them to download the app to take advantage of the app’s exclusive discounted price.

The result

Campaign 1

RD’s results for the first campaign were beyond amazing. Thanks to Hidden Gems and a new DABA campaign, their revenue was 283% higher than projection. They also hit a ROAS increase of 116%! In addition, RD only used 57% of the projected budget, therefore crushing their revenue goal and saving 43% of the budget to use in other campaigns!

Campaign 2

RD’s second campaign was also a huge success! App instals were 67% higher than their expected goal, app revenue increased by 158%, and after just one month of the campaign, ROAS jumped by 246%. To top it off, Drogasil attained these spectacular results while spending 25% less than what was projected!

Lis
Lisandra Kelly, Business Expert

"Despite digital maturity and access to the latest market solutions, the possibilities presented by ROI Hunter have improved the return on Facebook ad spend (ROAS) in RaiaDrogasil's Growth Marketing, in addition to boosting instals and revenue in the company’s apps. Existing resources within the platform, such as Hidden Gems and Template Editor (TEDI) were fundamental to our result. We appreciate the support of ROI Hunter who clearly understood our goals and KPIS."

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