Background

Blue Bungalow is an Australian online boutique destination that offers a curated range of apparel, shoes, and accessories. With a constant stream of new arrivals, their customers can discover the perfect everyday, event, and travel pieces to enhance their wardrobe.

Emma Filliponi is Head of eCommerce and Marketing at Blue Bungalow. She is responsible for driving the company's online sales growth, enhancing brand visibility, and delivering a seamless and engaging customer experience across various digital channels.

The challenge

Like many retailers, Blue Bungalow was grappling with the escalating cost of customer acquisition through paid channels. The company had to weigh the options of reducing advertising spend, potentially leading to a lower customer acquisition rate, or increasing the budget in hopes that competitors would decrease spending due to intensified competition. These options were not exactly viable, prompting the need for a solution that would allow Blue Bungalow to reach new audiences, convert them into customers, and achieve these objectives without exceeding their advertising budget.

The solution

Blue Bungalow was introduced to nextbuy through preezie, our brand-to-brand referral network that offers a unique approach to customer acquisition. By collaborating with non-competing brands, Blue Bungalow could gain exclusive access to highly engaged audiences from the checkout pages of other retailers. Blue Bungalow found the pay-per-conversion model of nextbuy to be both surprising and a major selling point. Unlike traditional paid advertising channels, nextbuy would eliminate the risk of wasting advertising budget since charges are incurred only when a referral successfully converts, making it an extremely efficient and results-oriented solution.

Blue Bungalow was also excited about the opportunity to collaborate and access a shared pool of similar customers from other well-known retailers. By joining the nextbuy network, they could leverage brand synergy to expand their reach, effectively target new customers with an interest in fashion, and increase their online sales.

Filliponi stated: “What makes nextbuy truly unique is the surprise and delight it brings to shoppers. Normally, when you make a purchase on a website, that's it - the transaction ends there. Maybe you'll receive a discount code for your next visit, but not much else. However, with nextbuy, the shopping journey doesn't end with just one brand. Instead, you're presented with a variety of other brands that complement your initial purchase. For example, if you’re interested in makeup, you might also be interested in Blue Bungalow to create a complete look. It feels like a natural and organic continuation of your shopping journey, and it's unlike any other paid advertising channel.”

Results and benefits

Blue Bungalow's customer acquisition success has been remarkable since joining the nextbuy network. To assess its effectiveness, we conducted a comparative analysis of nextbuy's performance against Blue Bungalow's advertising on Google and Facebook during the first four months of 2023.

Compared to Google Ads, nextbuy achieved an impressive 27% higher conversion rate, with customers spending an average of 14% more. What's even more notable is that Blue Bungalow experienced a 78% lower cost per acquisition (CPA) on nextbuy.

In comparison to Blue Bungalow's Facebook ads, nextbuy outperformed with a conversion rate that was 7 times higher and a 13% increase in customers' average order value (AOV).

Filliponi stated, “This 78% reduction in cost per acquisition compared to Google Ads speaks volumes about the power of the network. Unlike traditional digital paid channels, where brands compete against each other to outbid and drive up costs, nextbuy fosters collaboration and shared success. As more retailers join the network, we all benefit from the lower cost of acquiring customers. This creates an ecosystem where every participant can win. In the long run, nextbuy may even reduce our reliance on paid media and become a more significant part of our acquisition strategy.”

The remarkable results achieved clearly demonstrate the effectiveness of collaboration and cross-promotion through nextbuy. This approach provides greater visibility, access to a larger audience, and the ability to generate more sales, all while minimising advertising costs.

Filliponi shared, “One of the major advantages of being a part of the nextbuy network is the significant reduction in cost per acquisition. When using traditional paid channels, it's not uncommon to pay over $20 to acquire a single transaction on your website. However, with preezie's nextbuy, the cost per acquisition for us is approximately $8.”

Final thoughts about nextbuy

Question: Tell us about your experience regarding the brand synergy you’ve observed with one of your top referral partners in the network?

Answer: “The synergy between Blue Bungalow and Adore Beauty is evident through our shared audience demographics. Our female-focused fashion products complement Adore Beauty's health and beauty offerings, resulting in a natural pairing for customers. In addition, we’ve noticed many customer referrals coming from the lingerie and underwear category, which makes sense as it is a logical extension of the shopping journey for many women. For example, when shopping online, women may choose to complete their outfit with a dress from Blue Bungalow, undergarment pieces from Triumph Lingerie, and add some new lipstick from Adore Beauty. With the help of nextbuy, we can leverage this synergy and provide a seamless shopping journey for our customers, enabling them to easily discover and shop with brands that are a perfect fit.”

Question: Could you provide insights into your implementation of the nextbuy widget on your website's checkout page?

Answer: “The implementation process for nextbuy was incredibly simple. We were able to add the preezie nextbuy code to our website without requiring assistance from any developers. This was a major advantage for us because it allowed us to get started on nextbuy quickly without briefing the implementation into an already lengthy pipeline of work for our developers.”

Question: As a current member of the nextbuy network, what would be your message to brands contemplating joining?

Answer: “nextbuy is a remarkable and alternative advertising channel that works seamlessly in the background. As the network grows and more partners join, it will transform into an ecosystem of retailers where everyone can benefit from shared audiences and increased sales. Unlike some paid ads that can feel invasive and forced, businesses can generate new customers in an unexpected and organic way through nextbuy. Taking up a brand's special offer feels like a choice for the customer, making the acquisition process more appealing and effective.”