CB/I Digital boosts Chan Luu's revenue from -25% to +44% YoY

Chan Luu has spent nearly 30 years building her brand of hand-crafted jewelry, accessories, and apparel. Throughout her career, she championed artisan craftsmanship, supported fair labor practices, and even received recognition from the United Nations.

The brand faced a steep DTC challenge in 2023 with a major drop in AOV, a 20% drop in orders, and a 25% drop in revenue year-over-year. To reverse the downturn, we needed a fresh approach to make our Search campaigns more effective, stabilize revenue, and put the brand back on track.

Our first priority was to expand the customer base. Facing rising costs on Facebook, we decided to reallocate over 50% of our prospecting budget to Google, leveraging Performance Max for lower CPCs to drive new traffic at a better ROAS.

Beyond structuring by performance, we added a layer of pricing to control spend and ROAS more effectively, segmenting the Top Converting campaign by <$100, $100-$200 and >$200.

This also subverted Google’s automation to improve AOV. While the algorithm had been prioritizing high-converting, lower-priced products, adding spend behind new, higher-value products increased their visibility and drove up order value.

On Search, we utilized our proprietary Playmaker AI technology to automate bidding on search terms, keeping ROAS low and revenue consistent.

And while often overlooked, we also optimized Bing, switching from manual CPC to target ROAS for better efficiency.

By Q1 2023, Performance Max revenue nearly tripled, growing 183% year-over-year, clicks went up 3X and ROAS increased despite the bigger spend.

Most importantly, new users increased from 60% to 80% of our audience, overall channel revenue grew 38% with a 20% growth in conversions.

Bing also saw a 70% gain in revenue, conversion rates nearly doubled from 7-13%, and ROAS increased 240% from 6.97 to 16.73.

This comprehensive strategy took Chan Luu’s YoY revenue in 2022 from -3% in Q1 to +11% in Q4, leading to an incredible 44% increase in Revenue in Q1 2024, with a 12% jump in AOV year-over-year.