The Honest Company Taps Paid Media to Re-Engage Consumers, Slash Cart Abandonment Rates
The Honest Company saw an area of opportunity within its e-commerce efforts this year, acknowledging that 25% of consumers who added an Honest Company product to their Amazon cart did not complete the purchase.
In an effort to reduce cart abandonment and re-engage its consumers, The Honest Company has been working with performance marketing company Tinuiti to elevate targeted audience marketing and drive increased conversion rates.
A month into the effort, The Honest Company has seen a higher rate of return from re-engaged consumers, along with new customer acquisitions at a lower rate of acquisition by about two-thirds. The company reports it is able to acquire new, high-value customers for less than $1.
The company has increased ad exposure, targeting a wider audience net via sponsored clicks and keyword searches.
By developing more personalized, targeted marketing, The Honest Company has been able to foster deeper relationships and capture new audiences. For these reasons, paid media continues to be a popular area of investment for consumer goods companies looking to get closer to their customers.
According to Insider Intelligence, U.S. retail media ad spend is projected to reach $45.15 billion this year, up nearly 20% over 2022. The research company also expects the growth to accelerate each year through 2027, when it could reach $106.12 billion.
Erin Thoensen, VP and general manager of Baby + Home at The Honest Company, said the collaboration has led to new efficiencies and has allowed the company to identify weaknesses and navigate creative and innovative solutions.
The Honest Company plans to continue on this path of maximized ad performance, working to nurture visibility on Amazon.com, improve media performance and drive sales with more efficient ad spend at Target and on Honest.com, and evolve the company’s paid media strategy to support the retailer ecosystem.
