Background
Neal’s Yard Remedies is a retail business, operating in the ethical and organic health and beauty industry with a focus on wellbeing. The company had been using Performance Max (PMAX) to drive customer acquisition but was facing challenges with increasing costs.
With PMAX prioritising remarketing and branded search terms, the cost per acquisition was higher than expected, making it less efficient for acquiring new customers. Additionally, switching to New Customer Acquisition (NCA) PMAX was met with hesitation due to it being in its early stages of being public.
Neal’s Yard Remedies needed a solution that provided more control over ad spend and targeting while effectively reducing acquisition costs.
The Challenge
Neal’s Yard Remedies struggled with high customer acquisition costs due to PMAX prioritising branded and remarketing traffic.
Limited targeting control restricted their ability to optimise spend effectively. Switching to a New Customer Acquisition model was not viable, they needed an alternative strategy to reduce overall CaC while maintaining or improving customer retention.
Our Approach
To lower acquisition costs while maintaining efficiency, we implemented a Standard Shopping campaign, refining targeting, bidding, and audience segmentation. A structured rollout ensured performance tracking and data-driven adjustments.
Standard Shopping for Greater Control
We moved to Standard Shopping to gain better control over ad spend and targeting. This allowed more precise tROAS adjustments, search term filtering, and audience exclusions, reducing reliance on automated PMAX signals.
Optimised Budget and Performance
A phased rollout ensured steady performance tracking, allowing for data-driven refinements. Gradually shifting budget from PMAX to Standard Shopping helped monitor acquisition and retention trends, ensuring a smooth transition.
The Results
- Customer Acquisition Cost (CaC) decreased by 38% between April and June.
- Returning customers increased by 6.7%, showing no negative impact from the campaign shift.
Conclusion
By moving from PMAX to Standard Shopping, Neal’s Yard Remedies was able to significantly lower acquisition costs while growing its returning customer base.
The campaign demonstrated that Standard Shopping offers a viable alternative for businesses needing more control over their ad spend and targeting.
