Caraway is a leading cookware brand offering non-toxic, high-quality, and well-designed kitchen goods. As part of their growth strategy, they wanted to optimize their customer acquisition efforts through various channels, with a focus on mobile shopping. Discover how Caraway's Shop Campaign addressed their customer acquisition challenges while delivering impactful results.
Problem
Caraway faced several customer acquisition challenges, including rising costs, ongoing competition, and the negative impact of privacy changes introduced by iOS 14.5. Additionally, they found it challenging to accurately attribute new customer growth across channels and campaigns. The team needed a solution that could efficiently acquire new customers while maintaining profitability and scalability among their mobile-first audience.
We do see continued pressures and costs elevating in the customer acquisition space. It's what 50% of my team is focused on 100% of the time, so it's obviously a huge, huge area of priority for us.
Solution
Caraway implemented Shop Campaigns, an innovative customer acquisition tool within the Shop app, to address their customer acquisition challenges. Shop Campaigns provides exclusive offers to first-time customers, incentivizing them to make a purchase by boosting the value of their Shop Cash. Having already used Shop’s branding customization and merchandising tools for their mobile storefront, the team wanted to expand their brand presence in the app and experiment with Shop as an acquisition channel.
Shop is great because it's easy to deploy brand kits, and we've loved the continued customization.
On initial set up, Caraway appreciated the ease of customization and implementation for their Shop Campaign. The streamlined process eliminated the need for extensive web development or pixel tracking, letting the marketing team quickly launch and adjust campaigns. This simplicity was a significant advantage compared to other channels, which often require more time to set up and ongoing resources to maintain.
The other reason I would encourage other brands to try it [Shop Campaigns] is because it's just so easy to get going. You don't have to go gather a million assets. You don't have to go set up a bunch of pixel tracking on your site. You don't have to do a bunch of stuff to make sure that it's not going to break your checkout experience.
The team was particularly impressed and appreciative of the direct attribution for new customers, especially because these customers were already using Shop Pay, making them higher quality acquisitions with better lifetime value (LTV). Being able to confidently acquire new customers at an efficient cost earned Shop Campaigns a permanent position in the brand's acquisition portfolio.
Results
Over the course of 2023, Caraway was able to impactfully drive incremental first-time customer acquisition and improve the efficiency of the brand’s acquisition efforts.
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Sustained sales at an efficient CPA: The Shop Campaign resulted in over $1MM in revenue at a cost per acquisition comparable to the other channels in their mix.
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Substantial growth in Shop app orders: Caraway witnessed an impressive 16x growth in Shop app orders during 2023. This substantial increase in purchases through the Shop app validated its position as a valuable acquisition channel for Caraway.
By using Shop Campaigns, Caraway achieved their goals of reducing acquisition costs, increasing brand exposure within the Shop app, and driving significant growth in orders. The campaign's success can be attributed to the strategic implementation of exclusive offers to incentivize first-time customers, as well as the ease of implementation and minimal upkeep required for Shop Campaigns.
We were looking for efficient customer acquisition, and we found it.
Caraway's Shop Campaign solved their customer acquisition challenges. By leveraging exclusive offers within the Shop app, Caraway decreased their CPA, increased brand visibility, and drove sales.