Möbelix, in collaboration with BALÍK PLUS, launched an advertising campaign aimed at reaching and acquiring new customers not only shopping online but also in physical stores, and ultimately increasing revenue.

Client

Goal

Attracting new customers in Slovakia and the Czech Republic
Strengthening brand position in the market
Increasing turnover from online and offline sales

Products

Discount coupon in DL format type BalikPlus2

Services

Insertion of discount coupons

Year

2023

About client

The Möbelix brand is part of the XXXLutz group of furniture and home decor shops. It specializes in offering a wide range of quality products for modern homes at affordable prices. Their assortment includes furniture, home accessories, garden furniture, and other practical equipment that helps customers create stylish and comfortable interiors.

The company operates in Austria, the Czech Republic, Slovakia, Hungary, and Croatia.

Main campaign objectives

Given the specific nature of the furniture segment, characterized by products meant for long-term use, the coupon campaign was designed with a validity period of 3-4 months.

The campaign was divided into four seasons based on the coupon distribution period:

  1. Spring – voucher valid from 01 – 04/2023
  2. Summer – voucher valid from 05 – 07/2023
  3. Autumn – voucher valid from 07 – 10/2023
  4. Winter – voucher valid from 10/2023 – 01/2024

Based on seasonality and the goal to boost sales both online and in physical stores, the design of the DL coupons type – BALÍK PLUS 2 was proposed.

Campaign in numbers

1 million
packages
20%
discount on everything
2
countries
1970%
ROMI
Campaign in numbers

Marketing results

An undeniable advantage of this case study is the ability to observe the positive impact of the campaign’s duration on increasing brand trust and recognition. Each coupon offered the same deal (a 20% discount on the entire range of Möbelix products, both online and offline) and was distributed in equal quantities.

The success of the campaign can be tracked by the conversion rate indicator, which measures the actual usage of the voucher during purchases.

Since the campaign was conducted during identical periods in both Slovakia and the Czech Republic, consumer behavior can be easily compared across both markets using the following graphs.

 

It is worth mentioning that this indicator, compared to online campaigns, is lower than average (according to MegaDigital.ai data for the furniture industry, it is 2.57%). However, it is important to note that the cost per click is around €2.77, while in our case, reaching one online shopper with a physical offer costs only €0.04.

The case study also indicates that seasonality affects the conversion rate. The post-Christmas period in spring is known for reduced purchasing power and declines in sales within this segment, partly due to the purchase of Christmas decorations and home accessories primarily before the holidays such as Christmas.

However, in the same online advertising context, the average cost per lead in this sector is around €100. In our case, the average cost of acquiring a real customer was ten times lower. As the graph shows, the cost of reaching a new customer decreases with each successive campaign, so we recommend clients plan several consecutive campaigns.

Outcome

From a marketing perspective, it is crucial to encourage customers to visit the e-shop or physical store and make a purchase. One of the main criteria for evaluating the success of an advertising campaign is the return on investment (ROI).

In this case, we can say that the average cost to acquire a customer was €7.5, while the average revenue from each customer was over €100. The Return on Marketing Investment (ROMI) for the customer over the entire year reached 1976%.

In the joint analysis of advertising campaigns in Slovakia and the Czech Republic, with a total number of approximately 1 million promotional coupons distributed, we managed to maintain a conversion rate of 0.41% and a ROMI* of 1915%. The analysis revealed that in Slovakia, the conversion rate was 0.56% and ROMI was 1976%. In the Czech Republic, however, the conversion rate reached only 0.49% with a ROMI of 1875%. The average revenue per user (ARPU) was 10% higher in the Czech Republic.

If you also want to achieve excellent results in your advertising campaigns, don’t hesitate to contact us, and we will agree on the best solution for your business. Write to us at info@balikplus.cz.

 

*ROMI = (marketing revenue – marketing expenses) / marketing expenses * 100, where marketing expenses = cost of campaign.