By Aaron Rosen
Our portfolio company Lampenwelt has customers with an average age of 50 years; somewhat older than the average e-commerce platform. We also noticed that it was not investing a significant amount of marketing resources in campaigns aimed at a younger audience and millenials, which in turn could have positive branding effects. Together with Lampenwelt, we sat down to explore whether focusing on reaching new potential customers via Social Media could attract a bigger and younger target group, and at the same time increase brand awareness. For this, we used their German shop Lampenwelt.de — these are the results of the test case.
Through short videos that we spread via Facebook and Instagram ads (as well as organically through Lampenwelt’s profiles on these platforms), we designed topics and campaigns that aimed at generating interest in the company and lead prospects down the funnel up to a buying decision. We also created a Facebook Messenger bot to attract people’s attention through a quiz, which would tell them which design-type they are. Lamps matching their style would then show up on the Lampenwelt landing page. In addition, we also worked with Influencers to increase engagement with potential customers on Instagram.
After the 8-week project, the outcome was very positive: we reached 3.3 million people with this campaign, of which 97% had not visited the website before. The Return On Ad Spend, which had started at 47% for the Facebook ads, reached over 311% towards the end of the project through optimization. The largest demographic reached with the campaign were women between the age of 25–34, which led us to conclude that the desired goal of reaching a younger audience was met. The implementation of the Facebook Messenger bot showed us that people are 3x more likely to sign up for a newsletter (i.e. become a lead) compared to direct traffic to lead-generation landing pages.
As follows, the engagement rate on Lampenwelt’s Facebook page was tripled as a result of the project, and the number of resulting website visitors from the Facebook page was doubled. In the case of Instagram, thanks to an influencer campaign we organized with ten German design influencers highlighting their favorite Lampenwelt product, Instagram following increased by the factor 4.
“Project A showed us an impressive array of opportunities in Social Media in just eight weeks. It was amazing to get such a head-start in the area and gain numerous valuable insights, which we could perfectly build on afterwards to continue the success”.
— Karl-Xavier Neubig, Director Shop Management at Lampenwelt GmbH
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