Marks & Spencer - Uncovering the value of Facebook ads for customer acquisition
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Marks & Spencer - Uncovering the value of Facebook ads for customer acquisition
"For this experiment, the Facebook Marketing Partner created custom events from M&S's own data to separate new customers from repeat customers. Then, they partnered with Facebook to run a conversion lift test that used these custom conversions. Thanks to this net new customer incrementality test, M&S gained better insight into online purchases and was able to determine how many incremental online purchases were made overall, along with additional insight into whether or not the customer was new or repeat."
"By quantifying the number of new customers, it found that existing customers were a stronger source of new purchases than the brand had previously realised. The test results also showed that its net new customers were in a younger age range, which helped validate its strategy to expand its target audience to attract new customers."
"The lift test results showed a strong overall return on ad spend, helped M&S quantify new customers, and also shed light on a new customer demographic: - 2.6X return on ad spend - 1.4% lif"
Marks & Spencer used custom events built from its own data to distinguish new customers from repeat customers. A conversion lift test then measured incremental purchases attributable to Facebook ads using these custom conversions. The results quantified overall incremental online purchases and identified whether purchases came from net new or repeat customers. Existing customers produced more new purchases than previously understood. Net new customers generated an 11% lift in incremental purchases, supporting strong overall return on ad spend. The test also indicated net new customers were concentrated in a younger age range, validating an expanded target audience strategy to attract new customers.
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