Luxury Escapes Case Study
Digital Minds
Alex Callender, Dastin Kencana, Paul Nayyar, Thomas McErlean, Vernon Lorenzo
Dream digital team driving long term growth & success for the brand!
“Digital Minds quickly pivoted their mindset and account strategy to support what was best for our business, and customers. Their fast re-build of strategy allowed us to rebound before many of our competitors, and is a testament to their customer centric focus.”
Matt Meisner
- VP Digital Marketing, Luxury Escapes
Luxury Escapes recovered well and scaled very quickly coming out of COVID, when Aussie borders started opening for travel their spend grew by 580% in 7 months. The account was built in a way that allowed us to respond instantly to the massive spikes in demand that occurred when each border opened.
Business Problem
At the end of FY22, we realised that ‘Past Purchasers’ made up the lions share of revenue and despite all of the spend and sales, we weren’t acquiring as many new customers as originally thought. ‘Past Purchasers’ are highly loyal to the business, so incrementality and continuing this growth once the post COVID boom ended was a major concern.
at the start of May. With this insight, our objective was to be early to market and establish Paid Search as a viable marketing channel during the lockdown period. Luxury Escapes committed a small but significant test budget of approximately 20% of their pre-Covid spend over a six-week campaign period, with the objective of obtaining a profitable return on ad spend (ROAS)
Our Strategy
We began investigating at the start of FY23, and digging into the data we found that Google was primarily driving returning customers, so we spent the next 6-8 months experimenting with campaign setups and measuring the New vs Returning sales ratio.
We tested and iterated the campaign strategy to skew towards new buyers — the outcome is a strategy that focuses on giving Google’s bid algorithms data that will force it to prioritise new customers over returning customers.
The Results
The strategy has been incredibly successful with the New Buyer ratio increasing from 33% of sales up to 65% of sales.
