Snapshot: A growing brand conquering the global beauty sector
Victoria Beckham Beauty sits in one of the most fiercely competitive categories in the world – one which generates over $500 billion in revenue globally every year. VBB’s range features makeup and skincare products for the face, lips, and eyes, plus collaborations with the likes of Augustinus Bader – a brand renowned for innovative, high-quality skincare formulations.
The Growth Shop team were tasked with supercharging their growth through a full revitalization of their growth strategy and multi-channel budget allocation, from media buying to email and SMS. Our focus was to continue scaling in the UK at a rate of knots, but also to bring that same momentum into the US, EU, and even EMEA markets.
This was all underpinned by the implementation of a world-leading data infrastructure to track, measure, learn and grow.
If you’re looking for help to blitz-scale your brand, then you can book an intro call to see if you’d like to work with Growth Shop here
Problem: Scaling without a clear data infrastructure leads to suboptimal results
Our first key challenge with Victoria Beckham Beauty was to understand the real impact of their existing media spend on profitable revenue growth.
Measuring the impact of media through multi-touch attribution was becoming harder every day due to privacy restrictions – which had impaired VBB’s view of the real impact of their ads and, vitally, where they could be investing more to accelerate revenue growth.
Additionally, Meta ads played a key role in the Victoria Beckham Beauty marketing strategy, yet with the rapid growth there were fears that they might have reached a saturation point.
The Growth Shop Data Team’s integration of attribution tooling was laser-focused on the following points:
- Measuring what % of incremental sales were driven by ad spend
- Assessing ROAS across all the different media channels
- Learning which media allocations were saturated so we could optimize accordingly
- Identifying which media allocation opportunities to allocate more ad spend
Solution: Incrementality measurements and diminishing returns presented major growth opportunities
The GS Data Team led a comprehensive analysis based on Marketing Mix Modeling, enabling a granular view of the incrementality impact across all media channels for VBB.
Insights revealed that:
- Advertising contributed to 50% of VBB sales
- No Saturation was detected in Meta spending: Contrary to concerns, the diminishing returns analysis revealed that we had not yet reached a critical saturation point in Facebook spend. This meant that the current level of spend was not only effective, but there was room for growth without experiencing a decrease in ROAS
- Pinterest was overperforming: Pinterest drove the lowest cost per order compared to every other channel
- Rapid saturation of Google Search Brand Campaigns: Google search brand campaigns demonstrated saturation after 10% of the marketing budget invested, indicating that further investments in this area may yield diminishing returns
- Direct SMS campaigns showed strong performance per dollar spent, but were limited by the small customer base who had actually opted-into receiving SMS comms from VBB. Revised optin optimization boosted collection rates by 63%.
The Outcome
Tooled-up with a fully-firing end-to-end data infrastructure, smart KPIs, and a world-class growth team on execution – we went to work.
From September to December 2023 we achieved the following:
- Scaled marketing investment by +98%
- Increased revenue by +100% YoY
- Maintained ROAS YoY despite rapid increase in advertising investments
- Increased Meta investment by 52%
So we took all of our research and distilled it down into a beautifully simple hook:
Conclusions
Victoria Beckham Beauty’s story highlights the critical role of advanced attribution, smart modeling, and exceptional execution in today’s privacy-first, cookieless marketing environment – and how the opportunities are always there if you know how to look for them.
“Platform data combined with our internal BI was sufficient at early levels at scale, yet with our growth trajectory, we needed a more powerful solution. Growth Shop helped us sense-check key channels and quickly identify new channels and scale the business to new heights.”
– Chris Maliwat
Chief Digital Officer
Victoria Beckham Beauty
