RedBalloon Makes Big Cuts to Acquisition Costs with Albert
Despite high brand recognition in its native Australia, experiential gifting service RedBalloon struggled to turn awareness into conversions until it brought Albert aboard.
The goal of every marketer is to put the right ad in front of the right consumer at the right time — every time an ad misses that mark, a great deal of the company’s marketing spend ends up going to waste on consumers who just aren’t likely to take interest in what it’s offering.
This is exactly the problem that Australian experiential gifting service RedBalloon was determined to solve when it enlisted the help of Albert™, the world’s first fully autonomous marketing platform. RedBalloon has been a trusted leader in selling unique real-world experiences online since 2001, and has consequently earned massive brand awareness in its home country. Despite this high visibility, RedBalloon struggled to translate name recognition into higher conversion rates, and thus turned to Albert to revamp its marketing efforts.
Struggling to Acquire New Customers
Customer acquisition costs were an especially large pain point for RedBalloon. In the early years, the cost per acquisition typically peaked at around $.05, but in recent years, this figure skyrocketed to nearly $50 per customer.
As the co-founder of RedBalloon’s parent company Naomi Simson points out, “High acquisition costs are unsustainable for any business… We tried lots of things, but without an effective way of approaching all digital marketing, there was just so much waste. You would do one thing one day and it would work, and then it wouldn’t work the next.”
But Albert was able to change all that. After processing RedBalloon’s customer interactions and transaction history, he delivered high-level insights into the effectiveness of the company’s various creative material across all search and social channels. Using extensive multivariate testing, Albert experimented with numerous channel, device, and creative combinations, further refining his understanding of RedBalloon’s audiences in the process.
By testing and retesting conversion attribution models every day, Albert provided RedBalloon with a much deeper understanding of how its customer base interacts with and reacts to its marketing efforts. Remarkably, Albert identified and acted upon more than 6,400 critical keywords in the first 24 hours in order to improve RedBalloon’s marketing performance across the board, something that would have taken a human marketer nearly a year.
Finding Success with Albert
Forging a partnership with Albert ended up paying huge dividends for the Australian experience retailer. Not only did his precise targeting help RedBalloon reduce customer acquisition costs by 25%, but Albert also facilitated the adaptation of RedBalloon’s product feed into an online catalog, resulting in an astounding 3,434% return on Facebook ad spend.
Overall, RedBalloon was able to achieve a 40% reduction in its total cross-channel marketing costs, far surpassing the company’s goals. “We don’t know where the ceiling is,” admits Simson, “and we can’t wait to see how Albert can continue to accelerate and amplify our efforts.”
Though its results have certainly been impressive, RedBalloon is far from atypical as far as its success with Albert goes. Albert can leverage his powerful artificial intelligence capabilities to help any company gain a deeper understanding of its customer base and use that knowledge to tailor its messaging and drive more conversions.