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Brazilian retailer Riachuelo drives eCommerce growth

  Article , Retail , Success stories

Responsive Ads and Remarketing are features of successful ad campaigns

Fashion retailer reaches new audiences

Riachuelo logo

In Brazil, Riachuelo is one of the country’s leading retailers. In 1947, brothers Nevaldo and Newton Rocha founded the Guararapes Group. It all started with a fabric store in Natal, Rio Grande do Norte, Brazil. Four years later, a small clothing store was launched, and new points of sale were acquired. In 1979, they acquired the Riachuelo and Wolens chain stores, expanding their operations into clothing retailing.

Today, more than 300 stores and 40,000 employees later, the vision of Riachuelo is to facilitate access to fashion, bringing the consumer agility, quality, and fair value. In recent years, Riachuelo has been positioning itself as an inclusive brand that supports and embraces minorities, body acceptance and diversity.

Taking advantage of all the optimisation opportunities, it became very clear the importance of applying dynamic ad formats, along with the use of audiences, made all the difference in the final result.

— Glaucia Segatti, Digital Marketing Manager, Riachuelo

COVID-19 forces closure of brick and mortar stores

At the onset of COVID-19, Riachuelo — along with so many businesses — brick and mortar stores were impacted and forced to close, prioritising the need to transform the Riachuelo website into the main sales channel of the brand.

In addition to digital brand presence having become the main channel of reach and engagement with consumers, the need to monetise performance campaigns had become essential for the health of the business, and a key priority had become acquiring qualified traffic to the website.

Riachuelo expands ecommerce footprint

i-Cherry logo

Riachuelo turned to digital marketing agency i-Cherry, a strategic partner to create and execute new campaigns designed to drive traffic to their website across a variety of digital marketing channels. The team at i-Cherry set out to conduct a detailed audit of the channels already in place and opportunities to expand reach and engagement even further. The team realised that Microsoft Advertising was a channel little explored but with potential for a high return on investment for the Riachuelo ecommerce business. Working together with Microsoft Advertising, the teams conducted a Health Check of the account to optimise campaigns, implement best practices, drive traffic, increase ecommerce sales and drive company profitability.

Campaign optimisations were implemented

  • Added Universal Event Tracking (UET) tag to enable conversion tracking and remarketing on the Riachuelo website
  • Inclusion of Responsive Search Ads, Sitelink and Callout extensions
  • Use of Remarketing in campaigns, monetising clicks for users who have already had contact with the brand at a previous time
  • Reallocation of investments and campaign budgets to ensure the team could always cover periods of high demand in the most profitable campaigns

Digital marketing results exceeded expectations

Riachuelo revenue pie chart, January through May 2020, shows the month of May generated 50% of all 2020 revenue during that timeframe.

Riachuelo revenue pie chart, January through May 2020, shows the month of May generated 50% of all 2020 revenue during that timeframe.

In May 2020, once campaign optimisations were implemented, a significant increase in revenue was recognised. The month accounted for 65% of revenue captured throughout 2020 and represents an increase of 224% compared to the second-best month (April). The conversion rate accompanied the strong revenue results. The Return on Ad Spend (ROAS) grew month-over-month to 4.08, significantly higher than that consolidated in the first three months of the year. The total e-commerce revenue generated in May with Microsoft Advertising (during the period when all optimisations were in place), astonishingly accounted for half of the total revenue generated between January – May 2020.

“Through the partnership with the Riachuelo performance team and the attentive Microsoft Advertising team, we were able to scale our results in a short time, applying the recommended best practices and achieving success in our client's main business metrics. We were very excited about the results and we certainly have Microsoft Advertising campaigns as important allies in the media strategy.” Bruna Dea, Digital Strategy Coordinator, i-Cherry.

We understand that the impact driven for the record-breaking month was not only the result of campaign optimisations, but also the relationship built with Riachuelo, i-Cherry and the Microsoft Advertising team.

— Mellina Azevedo, Specialist Director, i-Cherry

The future looks bright

The month of May 2020, driven by campaign optimisations in the Microsoft Advertising account, delivered the most significant performance. In addition to revenue return, the team now has visibility into account conversions and greater optimisation possibilities.

“Taking advantage of all the optimisation opportunities, it became very clear the importance of applying dynamic ad formats, along with the use of audiences, made all the difference in the final result. Our interest is to continue testing and optimising campaigns, to continue our success and further advance our campaign results,” says Glaucia Segatti, Digital Marketing Manager, Riachuelo.

The revenue gain was significant, and the conversion rate also showed a high growth compared to the month before the optimisations. In the evolution of the year, Riachuelo experienced in May 2020 one of the highest return on investments for the Riachuelo ecommerce business.

“We understand that the impact driven for the record-breaking month was not only the result of campaign optimisations, but also the relationship built with Riachuelo, i-Cherry and the Microsoft Advertising team. The use of best practices and the process of building trusted relationships across the teams became an essential intersection of the quality of the account and directly linked to the result and the revenue growth month over month. In the coming months, we are excited to continue building the relationship with Microsoft Advertising to evaluate account health reports, identify optimisation opportunities and drive growth together”, said Mellina Azevedo, Specialist Director, i-Cherry.

See a summary

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