Case study | musicMagpie

A smart, sustainable, and trusted way to shop, rent and trade-in phones and tech, musicMagpie improved customer acquisition costs by 20% in their Herdify-identified communities, resulting in incremental revenue of 6x the monthly cost.

  • Improved customer acquisition cost by 20%
  • Increased revenue across multiple channels
  • Incremental revenue of 6x the monthly cost

“We engaged with Herdify by recommendation, and we’re glad we did. We were able to work with the team, to implement an experimentation roadmap that supported our goals of reducing our acquisition costs down. We were able to do this, successfully, reducing our search & PLA CAC by 20%, enabling us to reinvest and scale.”

At musicMagpie, we encountered variable and inconsistent results in ad spending within our budget. Determined to enhance traction for a new product launch and to find effective ways to compete with new competitors’ sizable budgets in the market, we recognised the potential of tapping into herd mentality and community growth. This realisation led us to embark on a Herdify journey.

musicMagpies’ Herdify journey

Leveraging Herdify’s community data, we tested the impact of applying this targeting to our digital advertising spending. Through an A/B test, we compared the locations where Herdify’s data showed a strong propensity for customer action against those without.

The outcomes:

  • We improved our customer acquisition cost by 20%.
  • We witnessed increased revenue across multiple channels.
  • We generated incremental revenue of 6x the monthly cost.

Working closely with Herdify, we were able to optimise our non-brand keyword results by leveraging behavioural science and herd mentality to nudge audiences who were most likely to click a musicMagpie ad. In the process, we uncovered the significance of real-world communities with the performance of our online campaigns.

Working with Herdify

Our collaboration with Herdify allowed us to gain a profound understanding of our community’s growth dynamics. Equipped with this knowledge, we are now better positioned to identify and nurture our communities. As we look to expand our use of Herdify across our offline channels, this resolution sets the stage for discovering new community formations and understanding how our marketing activities impact purchasing decisions.

The partnership with Herdify has not only revolutionised our approach to digital advertising but has also opened the door to new marketing opportunities for sustained growth in the dynamic world of e-commerce.

Friends in conversation | Herdify

Sign up to the Herdify newsletter

Ignite your brand power: Why your offline community is the real influencer

“Social communities grow more powerfully offline, yet most marketing tactics tap into the online element. 92% of word-of-mouth – the single biggest influence on consumer buying behaviour – happens offline."

~ Ed Barter, Lead data scientist at Herdify

In this free whitepaper, you’ll learn: