The Challenge

Demarson, a growing jewelry and accessories brand, sought to significantly scale their ecommerce revenue while maintaining a high-end image. Despite their unique, fashion-forward designs, they faced several challenges common to the luxury jewelry industry:

1. High competition from well-established luxury jewelry brands with a dominant digital presence.

2. Low conversion rates due to the high price point of the products, which required a strong value proposition to persuade buyers.

3. High customer acquisition costs (CAC), making it difficult to generate a sustainable return on ad spend (ROAS).

4. Need for differentiation: Standing out as a luxury jewelry brand required creative advertising and enhanced user experience.

"We had a great product, but we weren’t seeing the sales we expected online. We needed help optimizing our digital strategy to truly showcase the uniqueness of our brand," said Jason Crantz, Creative Director at Demarson.

Our Approach

To address the specific challenges faced by Demarson, we developed a comprehensive, multi-channel strategy designed to increase their digital reach, lower customer acquisition costs, and ultimately boost sales.

Key Components of the Strategy:

1. Highly Targeted Audience Segmentation: We focused on segmenting affluent customers who were interested in unique, statement jewelry. By analyzing buyer behaviors and demographics, we delivered personalized ads to fashion-forward women and luxury jewelry collectors, emphasizing the exclusivity and craftsmanship of Demarson pieces.

2. Creative Testing with AI Optimization: We used AI to dynamically test various ad creatives, including high-end product shots and lifestyle imagery featuring jewelry in fashion-forward settings. Ads that highlighted the exclusivity of the pieces saw a 35% higher click-through rate (CTR) compared to more generic jewelry ads.

3. Luxury Landing Page Overhaul: We revamped Demarson's landing pages to reflect the luxury nature of their products, improving the visual storytelling and simplifying the checkout process. This resulted in a smoother, more premium shopping experience that resonated with their target audience.

4. Efficient Budget Allocation: Using AI-driven bidding strategies, we allocated the budget toward high-performing platforms and customer segments. By tracking real-time performance, we optimized ad spend to target high-intent customers, ensuring maximum ROAS.

The Journey

Month 1-4: Initial Testing and Foundation Building

In the first four months, we laid the groundwork for Demarson's growth by thoroughly testing various audience segments and ad creatives:

• Audience analysis identified high-value customer segments, particularly fashion-conscious women who favored statement pieces.

• Creative optimization with AI testing allowed us to identify the most effective ad visuals and copy that resonated with these segments.

• Established baseline metrics:

  • ROAS: 3.5X (compared to a 2.5X benchmark for jewelry)

  • Conversion Rate: 0.6%

  • Cost Per Acquisition (CPA): $169.06

Month 5-8: Optimizing for Growth

Once the initial strategies were validated, we optimized the campaigns for efficiency and began scaling:

• Creative enhancements: Ads showcasing Demarson's craftsmanship and limited-edition pieces drove a 28% increase in engagement and a 20% increase in conversions.

• Landing page improvements: By focusing on the user experience, we reduced bounce rates by 18% and increased the time users spent browsing, which directly impacted sales.

• Smart bidding refinements allowed us to lower the CPA by 40%, significantly improving overall profitability.

• Key metrics after 8 months:

  • ROAS: 5X

  • Conversion Rate: 0.7% (industry average for luxury jewelry: 0.5%)

  • CPA: $101.19

Month 9-12: Scaling Profitably

With a solid foundation in place, we focused on scaling the campaigns while maintaining profitability:

• Advanced retargeting: We implemented sophisticated retargeting campaigns aimed at users who had engaged with Demarson’s website but hadn’t converted. This boosted conversion rates by 22%.

• Influencer collaborations: Partnering with micro-influencers in the fashion industry helped Demarson tap into new audiences and drive additional organic traffic.

• Key metrics by the end of the 12 months:

  • ROAS: 6.2X

  • Conversion Rate: 0.8% (a 38% improvement from the start)

  • CPA: $80.65 (a 52% reduction)

  • Revenue: $1.55 million generated from $250,000 in ad spend

  • 3,100 conversions with an average order value of $500

The Results

By the end of our 12-month engagement, Demarson experienced impressive results that exceeded industry benchmarks for luxury jewelry:

• ROAS: 6.2X, resulting in $1.55 million in revenue from $250,000 in ad spend.

• Conversion rate increased by 38%, reaching 0.8%, which is significantly above the industry average for luxury jewelry.

• Cost per acquisition (CPA) dropped by 52%, from $169.06 to $80.65, allowing Demarson to scale their campaigns efficiently.

• 3,100 conversions with an average order value of $500, solidifying the brand’s position in the luxury jewelry market.

Client Testimonial

"The team's strategic approach helped us not only scale our digital campaigns but also reduce our acquisition costs by more than half. Their ability to craft campaigns that reflect our brand's luxury image was a game-changer for us," said Jason Crantz, Creative Director at Demarson.

Continuous Improvement

Working with Demarson taught us valuable lessons that we’ve since applied to other luxury brands:

1. Crafting a premium experience online: For high-end jewelry, ensuring that the entire customer journey feels exclusive and luxurious is key to boosting conversions.

2. Personalization and retargeting: Targeting high-intent users with tailored messaging based on their interactions with the brand significantly increased our ability to convert luxury buyers.

Conclusion

Our partnership with Demarson demonstrates the power of combining AI-driven marketing strategies with a deep understanding of the luxury jewelry market. Over the course of 12 months, we helped Demarson achieve:

1. 6.2X ROAS, driving $1.55 million in revenue from $250,000 in ad spend.

2. Reduced customer acquisition costs, enabling sustainable scaling in a competitive market.

3. Enhanced conversion rates, converting browsers into buyers at a rate above industry averages.

Looking to elevate your luxury jewelry brand and drive ecommerce success? Let’s discuss how our data-driven approach can help you achieve similar results.