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Facebook Case Study: The World’s Design Store, Fab.com

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The world’s design store, Fab.com, scaled its Facebook activity to Europe and achieved a 10-fold increase in people’s purchase intent by targeting potential customers with Custom Audiences.

Goals

Fab.com wanted to develop a streamlined marketing campaign to:

  • Expand its customer base to Europe, especially the U.K and Germany, Fab’s biggest markets in Europe
  • Drive product sales
  • Build customer loyalty

Approach

Enabling people to shop with friends online just as they do offline — sharing design inspirations and letting shoppers see what items their friends are saving and purchasing — is at the heart of Fab.com’s business concept.

So when Fab.com launched, it decided to focus its marketing acquisition efforts on Facebook, using a range of Facebook tools and solutions to unlock its full potential and create an experience that makes casual browsing authentic and fun.

First it hired Nanigans, a Facebook Strategic Preferred Marketing Developer, to assist with their always-on customer acquisition efforts and to ensure that it was targeting the most receptive audience. Nanigans also helped Fab.com optimise and scale its Facebook activity to grow its business quickly and cost-effectively.

To do this Fab.com used Custom Audiences, a tool that targets groups of people that already have an established relationship with the brand. Fab.com found that these groups were 10 times more likely to make a purchase on its website than those who had no prior awareness of the brand.

Fab.com then went a step further by using Lookalike Audiences to reach new people with attributes similar to their current customers, identifying them as more likely to be interested in their business, and found that people targeted with Lookalike Audiences had a 50% higher lifetime value (LTV) than those acquired through standard targeting.

In addition, to help with their customer acqusition efforts, Fab.com added the “login with Facebook” social plug-in to its website and enabled people to instantly register with Facebook at the click of a button.

Fab is everyday design. 14 million people from 27 countries use Fab’s website and mobile apps to discover everyday design products at great prices, to connect with the world’s most exciting designers, and to share their favourite design inspirations.

Today, Fab is the world’s design store.

Results

  • 10X greater likelihood to purchase among people targeted with Custom Audiences than with standard targeting
  • 2X greater LTV of customers acquired via Facebook compared to any other channel used by Fab
  • 50% greater LTV for customers acquired using Lookalike Audiences compared to standard targeting

We’re gaining a higher lifetime value via Facebook than we are from anywhere else. Right now, Facebook is our most effective marketing channel. Facebook Custom Audiences helped increase customer loyalty by providing us with a powerful new tool to get the right products to the right people at the right time. We believe Facebook could become as important as “traditional” loyalty channels such as email and direct mail. Especially when we overlay custom audience targeting with other Facebook targeting variables.

— Tom Beverley, VP of Marketing Europe, Fab.com