Case Study: Xiao Hong Shu

Background

Xiao Hong Shu (or ‘Little Red Book’) is one of the new stars of the e-commerce market. It offers a mobile platform for the e-commerce community, where registered merchants and buyers can browse freely, trade and make payments. Having earned five-star reviews on the AppStore and being commended as ‘The Lifestyle Changing App of 2015’, the client came to Appcoach seeking mobile marketing and user acquisition solutions.

Target

The client targeted to gain new registered users (on both iOS & Android) in China and enhance brand awareness by utilizing display ads on diverse mobile media channels, all within a designated timeframe and targeted budget. The user quality benchmark was set at 25% next-day retention. 

Solution  

  1. Targeting & coverage: Appcoach hand-picked premium CPI media based on target user profiles. Each was allocated in a timely manner, optimized and its performance carefully analysed.
     
  2. Customized creative formats: Appcoach created attractive ads blended with seasonal content and clear product positioning. With active creative format A/B testing, Appcoach boiled these down to eye-catching, high-conversion ad formats. For example, call-to-action button design, simple-and-clear product introduction, and elements that attracted female users.

 

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Notes:

  1. Early stage: A small budget was issued to test the quality of channels and user response. Steady performance and desired ROI delivered continual growth;
     
  2. Mid-stage: The budget was adjusted and channels added with diverse creative formats. We observed user quality and made timely adjustments, with data growing healthy and rapidly;
     
  3. Late stage: The budget was adjusted and optimized. The pace of budget allocation was controlled and user acquisition growth and quality was stabilized.

Notes:

  1.  Android user next-day retention at approximately 25%;
     
  2. Since the client was satisfied with the iOS performance from Jan to mid-Feb (avg. 31%+), the Android launch was confirmed and included in the initial budget. Appcoach made the necessary budget planning adjustments to ensure a balance on CPI dual-OS, and managed the media mix based on volume, retention and targeted budget. As a result, the trend shows occasional fluctuations.