Magalu reduces CPA by 40% with Rocket Lab

With over 45 million registered customers, Magazine Luiza is one of the largest retail chains in Brazil. The company offers consumers a wide range of products, including appliances, electronics, fashion items, furniture, toys, and more, which can be found through various channels in one of the chain's 1,400 physical stores or on Magalu's digital platforms.

Today, the renowned Brazilian retail chain has its app as a key channel in its sales strategy, with more than 23 million active users in its user base.

Goals

Magalu's main goal was to reactivate users who had installed the app but had not made any purchases in the last 30 days. The campaign focused on encouraging users to transact with a low CPA.

Solution

A dynamic retargeting campaign was implemented, connecting the most suitable DSP platforms with a campaign paying a fixed cost for every 1000 impressions. All through our SPACE platform, which connects thousands of traffic sources and optimizes campaigns using machine learning. We optimized creatives using variables such as geolocation, best practices, and insights.

Campaign Results

The campaign's first month and first year saw a 20% increase in the Conversion Rate between April 2022 and April 2023.

The most significant impact was achieving a 40% lower CPA than the set target. Thanks to Rocket Lab's optimizations, users actively participated in the campaign, reducing the expected CPA. Additionally, there was an 11% average increase in Magalu's purchase volume in 2022, achieving the reactivation of native app users.

Diversifying strategies in digital campaigns was key to the incremental revenue in this case. That's why Rocket Lab's campaign has one of the lowest CPAs per unique user within Magalu's media.

"Thanks to Rocket Lab's strategic vision for this campaign, it was possible to achieve an excellent reduction in CPA, surpassing the average results of other media we work with at Magalu. It is a testimony to the experience of Rocket's CS and Operations teams. All the optimizations and best practices that helped us implement and change campaign results in just a month, maintaining scalability, with the reactivation of many app customers, which was our main goal."

Diogo Santos, E-Commerce App Marketing Coordinator at Magalu