Skip to main content

How OluKai Boosted AOV by 12% with Shop Campaigns

6/20/2024
OluKai
Bill Worthington
OluKai
www.olukai.com
Portland, Oregon, United StatesFounded 1970
💰
Monthly Revenue
Undisclosed
👨‍💼
Founders
Bill Worthington
👥
Employees
Undisclosed
🏢

Business Description

OluKai is a footwear brand inspired by Hawaiian island life. They craft premium sandals and shoes that blend comfort, performance, and water-friendly design, honoring traditions and supporting coastal communities.
📝

Executive Summary

OluKai tapped into Shopify’s Shop Campaigns to tackle rising CPMs and CPAs, launching a pay-per-conversion channel that delivered a 12% lift in average order value and brought in over 1,400 new customers in four weeks. Discover their step-by-step approach.
📄

Case Study Content

Overview

OluKai, a footwear brand rooted in the aloha spirit, faced a familiar dilemma: rising costs to acquire each customer and over-reliance on the same handful of ad platforms. In response, their ecommerce team explored a fresh channel—Shopify’s Shop Campaigns—promising pay-per-conversion pricing and minimal setup time. Over a four-week holiday push, they rolled out a targeted offer that delivered results fast.

Challenges

Like many direct-to-consumer brands, OluKai was seeing cost per thousand impressions (CPMs) climb and cost per acquisition (CPA) inch upward. Dependence on existing social and search channels left little room to test new audiences. They needed both efficiency and scale: a way to introduce the brand to shoppers on a new platform without blowing through budget or teams resources.

Choosing Shop Campaigns

Shop Campaigns fit the bill. Setup takes minutes, so the marketing team could configure and launch a campaign in the same day they made a strategy call. With a pay-per-conversion rate structure and built-in Shop app integration, they could promote a limited-time offer to high-intent audiences browsing in-app. The low barrier to entry meant quick tests and clear performance signals.

Implementation

Ecommerce Manager Nick Daniels crafted a simple discount on best-selling sandals and launched a Shop Campaign aimed at users with relevant browsing behavior. They set a minimum order value to protect margins and defined daily budgets tied to target CPA. The team monitored conversions in the Shopify admin and tweaked CPA bids and budget allocations each week.

Results

In just four weeks, OluKai saw:

  • 12% higher average order value from Shop Campaign orders
  • Over 1,400 new customers acquired at a lower CPA than other channels
  • A quick path to scale with a channel they now treat as business-as-usual
These outcomes convinced the team to expand Shop Campaigns into their ongoing media mix, testing daily budgets, minimum order thresholds, and CPA targets on a rolling basis.

Key Metrics in Action

By diversifying spend and leaning into pay-per-conversion, OluKai turned a four-week experiment into a permanent acquisition channel. They reduced risk, drove brand awareness, and captured high-intent browsers at efficiencies that matched or outperformed legacy channels.

💡

Key Takeaways

  • 1OluKai tapped into Shopify’s Shop Campaigns to open a new customer acquisition channel with minimal setup time.
  • 2Pay-per-conversion pricing enabled a clear link between spend and results, protecting margins while scaling ads.
  • 3A targeted discount offer drove a 12% lift in average order value versus other channels in the four-week holiday push.
  • 4Over 1,400 new customers were acquired at a lower CPA, proving the channel’s cost-effectiveness.
  • 5Weekly monitoring and quick bid adjustments kept CPA targets in range and budgets optimized.
  • 6Success led OluKai to fully integrate Shop Campaigns into their standard media mix for ongoing growth.
📊

Key Facts

Average Order Value Increase
12%
New Customers Acquired
1,400+
Campaign Duration
4 weeks
🛠️

Tools & Technologies Used

🔒

Premium Content Locked

Subscribe to access the tools and technologies used in this case study.

Subscribe Now
🚀

How to Replicate This Success

🔒

Premium Content Locked

Subscribe to access the step-by-step replication guide for this case study.

Subscribe Now
Share:
✍️

About the Author

Founders Hut Logo

Founders Hut

Founders Hut is a leading online platform dedicated to sharing thousands of in-depth business case studies from successful companies around the globe. Since its launch, Founders Hut has empowered entrepreneurs, marketers, and corporate innovators with actionable insights drawn from real-world successes and failures.

Interested in Being Featured?

Share your success story with our community of entrepreneurs.

Get Featured
Disclaimer: Some data in these case studies may be inaccurate or out of date. In certain cases, AI-generated content is used.