Louenhide
Louenhide is a female-founded handbag and accessories brand sold in 1000+ retailers globally, both in-store and online. It was created by two friends 17 years ago and has stood the test of time with classic designs that are accessible and affordable.
The Goal
Louenhide approached Status Agency to expand its audience, diversify its marketing channels, and generate a better return on its paid media investment. The team wanted to grow the direct-to-consumer arm of its eCommerce business and needed a proactive team to efficiently scale up its advertising spend on Google, Meta, and Pinterest.
Together, we set out to increase their return on ad spend (ROAS) from 4 to 6. The brand had also traditionally appealed to more mature customers. Given that their audience was maturing, we also wanted to build affinity with females aged between 25 - 44 years of age.
The Challenge
The existing paid search and social campaigns were using broad audience targeting and leaning on AI to find the highest-value demographics. As a result, the campaigns favoured mature demographics who already had an affinity with the brand and were more likely to purchase. However, this didn’t align with the strategic direction of the business. Louenhide needed to reach younger audiences to drive long-term, sustainable growth.
The Insight
The key to reaching new demographics was in creating highly segmented and customised campaigns. The existing performance data had been pooled together under broad campaigns that leveraged AI to find the audiences that were most likely to convert.
This made it difficult to engage and learn about younger audiences who might have been less likely to purchase in the short term, but become highly valuable customers in the long term. A test-and-learn framework was required to uncover the products and creative assets that resonated with each target demographic.
The Solution
The first step was to create a segmented campaign structure so that highly relevant products could be shown to each demographic. AI was still utilised for audience targeting, but segmentation gave us more control over the types of products that were shown to each age bracket. Campaigns were also categorised according to interest areas, such as travel, work, and active living so ads were more targeted and relevant. This segmentation unearthed new insights into seasonality. For example, we observed travel bags taking off from April to May in the lead-up to European summer getaways from June to July. Laptop bags are also popular in January when women start returning to work. If an ad campaign took off, we worked with the product and warehouse team to ensure that best-selling products were in stock.
We also expanded our Pinterest activity and launched into TikTok to reach the Gen Z audience. By collaborating closely with the in-house content creation team to amplify fun behind-the-scenes content, we showed Louenhide in a new light.
The Result
Louenhide is successfully introducing its products to a younger demographic, while still appealing to the loyal audience that has grown with the brand over the years. So far in FY2324, we have achieved a 6.3x ROAS across all channels. Comparing Meta results from April 2023 to March 2024, we also created 17% market growth in Louenhide’s main target demographic (females aged 25 to 44 years old). This resulted in an 18% increase in revenue from 25 - 34 year-olds and a 16% increase in revenue from 35 - 44 year-olds.
6.3x ROAS
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17% market growth in target demographic
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18% increase in revenue from 25-35 year olds
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6.3x ROAS 〰️ 17% market growth in target demographic 〰️ 18% increase in revenue from 25-35 year olds 〰️
Testimonial
“Status Agency took the time to develop a strong relationship with our brand; understanding our customer and company objectives. Over the past few years, our business has experienced considerable change and growth. The team went above and beyond to support us and worked with us closely to adapt our strategy efficiently for success.”
Kirsty Campbell, Marketing Manager, Louenhide