CASE Study
Premium User Conversion, with AI Predictive Segments
Kahoona is challenging traditional broad targeting for premium products by focusing on acquiring new premium customers and emphasizing the nuanced needs of high AOV (average order value) users.
This new approach enforces a focus on new users with high pricing levels, while traditional methods focus on a blended audience consisting of returning users, very few new users and a large portion of irrelevant pricing levels.
Based on their new data modality, Kahoona generates predictive user-level predictive-AOV and pricing level signals by capturing 15x more data points than traditional method. They focus on the fine-grained human-computer interactions of 100% of users.
By benchmarking Kahoona's AI targeting vs. Meta’s broad / ASC targeting, Kahoona demonstrated a substantial uplift in crucial business KPIs when targeting premium users.
The Challenge
The Challenge
In recent years, paid social marketing has relied on broad targeting strategies that cast a very wide but general net. These strategies often prioritize reach over relevancy, failing to engage or convert high-pricing level (premium) users effectively.
Premium users take considerably longer to convert. Making matters worse is the inability to identify and then segment them properly from the non-premium users who are the vast majority. Online brands are missing a viable solution to act upon the subtle behaviors and preferences of premium customers, which leads to inefficient ad spend (higher CAC), lower conversion rates and missed revenue opportunities.
Kahoona’s Innovative Solution
Kahoona introduced a first-of-its-kind data modality, focusing on capturing and analyzing in-page micro-interactions and behaviors across all users. This approach enables online brands to understand a variety of user-level attributes that were previously obscured, far beyond simple, vague metrics relying on sparse indicators like page views or add-to-cart actions.
Crucially included are the unidentified visitors (96% of website visitors), offering a variety of actionable use-cases, and unparalleled full user-visibility. By leveraging AI to process this depth of data, Kahoona can predict crucial business-level KPIs with high accuracy. This includes user's probability of purchase, expected AOV, demographics, attitudinal behavior and brand affinity early on in the user funnel, tailoring marketing strategies to engage premium users effectively.
Comparative Analysis
Kahoona Vs. Meta Broad Targeting
The 60 day case study with a world-class premium brand examined a comparative performance on prospecting premium shoppers (high AOV & high-priced products) between Kahoona’s precision targeting strategy and Meta’s broad targeting approach.
Increased Premium Shoppers ROAS
An uplift of 368% was observed with Kahoona’s approach. The brand measured ROAS on the premium product buyers on GA4 (with the same setup between the two variants), significantly outperforming the industry standard.
Kahoona enabled the brand to increase their ad spend by 2x, while persisting with High ROAS.
Increased Sales Velocity
The average time to conversion improved by 312% compared to the site average for Premium buyers. Surprisingly, Kahoona’s buyers out-competed the overall site average, including non-premium users with typical lower time to conversions. As Premium users typically take considerably longer to complete a purchase, this result shows an incredible impact on speeding up the premium user buying process.
New Customer Acquisition
While some have accepted the status quo, the original idea of prospecting with a broad setup is reaching and converting new users (and not returning customers).
166% more new customers were acquired with Kahoona compared to the best performing premium campaign utilizing traditional broad targeting.
Higher AOV
Kahoona achieved a 257% higher AOV vs. Meta’s broad targeting strategies.
Kahoona demonstrated the highest AOV campaigns across the entire account, outperforming others significantly.
Notably, Kahoona’s campaigns had a halo effect, enhancing the performance of concurrent marketing efforts by establishing a stronger brand affinity and awareness among targeted users.
Beyond immediate campaign performance improvements, Kahoona’s full-visibility capabilities offer brands deep strategic insights into their audience that shape strategies.
THE BOTTOM LINE
Kahoona engages and converts new premium shoppers more efficiently with its AI micro-behavior-focused targeting,
increasing high-priced products conversion efficiency.
Ready to embrace this cutting-edge technology?
Book a meeting with one of Kahoona’s experts!
