x

The Danish home décor retailer boosted incremental return on ad spend by 28% using Meta’s predicted lifetime value (pLTV) optimization via the Conversions API, which enabled it to identify and convert highly valuable customers, compared to its usual automatic bidding strategy.

Go to Meta case study

+31%

increase in incremental purchases when bidding higher for high-value audiences, compared to its usual automatic bidding strategy

+28%

higher incremental return on ad spend when bidding higher for high-value audiences, compared to its usual automatic bidding strategy

+24%

lower cost per incremental purchase when bidding higher for high-value audiences, compared to its usual automatic bidding strategy

The Story

Founded in Denmark in 1973, Søstrene Grene offers a variety of products, from home décor accessories to interior furnishings and kitchenware. The company has expanded its presence to 16 countries across Europe. Since 2020, Søstrene Grene has transformed into a digital-first company, rapidly extending its offerings via an ecommerce presence in Austria, Belgium, Denmark, France, Germany, Ireland, Netherlands, Norway, Sweden, Switzerland and the UK.

The Goal

Acquiring high-value new customers

Søstrene Grene aimed to acquire high-value customers and scale profitable growth on Meta platforms.

Søstrene Grene wanted to focus on acquiring high-value customers who contribute significantly to the company's long-term revenue. To achieve this goal, the company initiated a new strategy.

The team at Søstrene Grene began by using technology from Churney to transform its existing customer conversion behavior data into a pLTV model. The model uses artificial intelligence (AI) to predict a new customer’s 12-month value at the moment they make their first purchase. This causally robust model allows advertisers to strategically optimize their marketing budget to acquire highly profitable customers.

‍

The breakthrough

pLTV strategy using bid multipliers

Next, Søstrene Grene securely integrated its pLTV values with Meta's server using the Meta Conversions API. This enabled Meta's machine-learning algorithm to find high-value audiences and bid higher for acquiring them. After eight iterations, the pLTV strategy consistently outperformed the company’s usual automatic bidding strategy in Ads Manager.

To understand the true incremental impact of the new strategy, Søstrene Grene then ran a multi-cell Meta conversion lift study that compared the performance of:

Cell 1: its usual campaign setup with an ad set shown to a broad audience of adults aged 18 and above living in the target countries, using an automated bidding strategy.
Cell 2: a new campaign that used pLTV values to find lookalike audiences likely to become long-term high-value customers, along with Meta’s bid multiplier solution to adjust its ad-bidding strategy to channel more marketing budget towards the audiences with higher pLTV values.

Søstrene Grene used the Advantage+ placements feature to automatically deliver ads across all of Meta’s placements based on which were most likely to drive the best campaign results at any given time, as well as the Advantage+ campaign budget feature to automatically distribute the budget across the best-performing ads in real time.

‍

x