Luxo Living is a contemporary furniture retailer based in NSW with a growing online presence across Australia. Luxo Living offer on-trend furniture at affordable prices. Since partnering with Connected Culture, Luxo Living have achieved amazing year on year online growth.
Leveraging full-funnel advertising solutions on TikTok to inspire home decor community and drive website conversions
26.7 %
17.2 x
ROAS
328K
The Objective
THE SOLUTION
Designing a full-funnel strategy, Connected Culture launched a campaign with multiple objectives in November 2023, from video views to traffic, conversions and catalogue sales. This creates a multi-touch funnel that improves brand awareness amongst users who are new to the brand, nurturing them with retargeted ads designers to educate users more about their products and eventually entice them to make a purchase on their website.
To maximise Luxo Living’s Return on Ad Spend (ROAS), they leveraged value-based optimisation to reach users who are more likely to make higher value purchases, by either buying multiple products in one go or buying products with higher price points.
In addition to broad targeting, they also tested out Interest Targeting – reaching audiences with indications of long-term interests and interaction with content related to furniture, home decor, interior design and more. By optimising their ads to reach relevant users, they would be able to focus their spend on users who are more likely to be interested in their products, and thus increase the rate of conversion.
The result
The fortnight-long full-funnel campaign proved to be effective, recording an impressive 17.2x ROAS and 26.7% Conversion Rate (CVR) on ‘Add to Cart’ events. Their video ads reached over 328K users and drove at least 1.3K profile visits, driving both brand awareness and sales at the same time.
By adding TikTok ads to their marketing mix across search and social channels, Luxo Living has expanded their available channels to interact with their customers while achieving a consistent yet high ROAS. The brand’s success story is also living proof of how TikTok Ads can drive ROI from top-of-funnel to bottom-of-funnel objectives, as Connected Culture continues to recommend and integrate TikTok Ads into media strategies across their portfolio of brand clients.
+43%
Increase in Revenue YoY
+40%
Increase in Transactions YoY
+6.5%
Increase in ROAS YoY
+39%
Increase in Traffic YoY
6%
Higher AOV YoY
+43%
Increase in Revenue YoY
+40%
Increase in Transactions YoY
+6.5%
Increase in ROAS YoY
+39%
Increase in Traffic YoY
6%
Higher AOV YoY
11.5%
Email Revenue
“November was very good for us. We were up on last year even with all the lockdowns in 2021. We are doing something right and one of those things is that we found Connected Culture.”
WINSTON T, DIRECTOR, LUXO LIVING
THE CHALLENGES
Luxo Living have invested in unique and on-trend products and developed technical and supply chain services to provide a streamlined experience for customers. The only thing that was missing was a Growth Marketing partner to help them efficiently scale their online business.
THE SOLUTIONS
Connected Culture used a full-funnel strategy across multiple paid media channels to increase PPC revenue by 43% year on year, despite the challenging economic environment in 2022 to 2023.
Connected Culture used three main channels to generate relevant traffic at the top, middle and bottom of the marketing funnel, leveraging Google, Meta and Email Marketing. Google was crucial in all steps of the funnel, with Search and PMax campaigns mainly focusing on the bottom of the funnel when customers are more likely to purchase and Generic Search and Display campaigns covering the top and mid-funnel.
Meta had a considerable role in its success. Its campaigns focused on reaching new customers by supporting the funnel’s awareness and consideration steps. Connected Culture used Meta’s Dynamic Ads to reach people who had already visited the website, optimising this activity for conversions and increasing the CTR by using high quality creative in campaigns. Further to the creative, Connected Culture used ad copy to call out Luxo’s main USP of “flat rate shipping for Sydney, Melbourne & Brisbane”.
Email Marketing campaigns also had excellent performance during the period, being responsible for 11.5% of their generated revenue. Luxo Living adopted Klaviyo as their CRM platform with which Connected Culture is a partner.
