ModCloth reduces their customer acquisition costs by 50% with SimplicityDX
See how a fashion and apparel brand uses AI social storefronts to reduce bounce rate and customer acquisition costs on social media.
Challenge
Brand A, a $200 million women’s fashion brand, carved out a unique niche in the direct-to-consumer fashion market and experienced rapid growth during the pandemic. However, as the post-COVID era set in and changes in privacy laws diminished the effectiveness of advertising, the brand needed a new strategy for customer acquisition to reignite its growth.
In an environment where every advertising dollar counts, the brand needed to generate more revenue from its social media spend. Like many brands, Brand A relies heavily on social media advertising to attract new customers. Each month, it runs over 100 different ads, featuring a mix of influencer content, styling tips, product and lifestyle advertisements, all aimed at converting new customers into loyal, repeat buyers.
However, the Chief Marketing Officer (CMO) had known for some time that traffic from these ads often resulted in high bounce rates and low conversion rates when potential customers landed on product pages.
The CMO had experimented with custom landing pages, which, while effective at driving revenue, were time-consuming and not scalable given the volume of ads and product variations Brand A managed. She needed a more efficient solution.
Solution
Collaborating with the SimplicityDX team, Brand A set up an A/B test on Meta. One of their best-performing ads directed traffic to a product page as usual (the A campaign), while the B campaign used the same ad but traffic was to a SimplicityDX Microsite.
“The microsite approach is very different from a traditional landing experience because it engages much more traffic at the top of the funnel enabling new customers to explore. It’s also almost completely automated, making a campaign-specific microsite really fast to deploy,” explained the CMO.
Collaborating with the SimplicityDX team, Brand A set up an A/B test on Meta. One of their best-performing ads directed traffic to a product page as usual (the A campaign), while the B campaign used the same ad but traffic was to a SimplicityDX Microsite.
“The microsite approach is very different from a traditional landing experience because it engages much more traffic at the top of the funnel enabling new customers to explore. It’s also almost completely automated, making a campaign-specific microsite really fast to deploy,” explained the CMO.
SimplicityDX enabled it to:
Turn social content into campaign microsites leveraging images, videos and influencer and user generated content
Create comprehensive campaign microsites for social ads in minutes
Provide a highly engaging experience for shoppers
Seamlessly integrate the storefront with their own eCommerce checkout flow
The introduction of campaign microsites has enabled Brand A to bridge the gap between social and eCommerce and replace the cold landing of a category or product detail page with a self learning campaign microsite These microsites transform any social post or advert into a shoppable experience, capturing the interest of shoppers more effectively and improving performance.
Results
Three weeks later, the test results were clear: the SimplicityDX microsite significantly outperformed the product page, increasing Return On Ad Spend (ROAS) by 99%, effectively doubling revenue for the same ad spend as the A campaign.
This improvement in ROAS was driven by multiple factors: the cart conversion rate increased by 24%, while the Average Order Value (AOV) rose by 29% as customers explored more of the product catalog and engaged more deeply with the brand.
SimplicityDX’s component-level analytics revealed that its AI-driven content and social influencer features were the most engaging elements. “This is content and a level of optimization sophistication that we just don’t have on product pages and couldn’t build on landing pages, and its great to be able to reuse social content in the landing experience so easily” the CMO commented.
"Working with SimplicityDX has been great – the team is super responsive and made it really easy for us to get live in just a few days.
We doubled campaign revenue for the same ad spend with minimal effort."
