How Burrow uses data science to drive intelligent growth
3 min read
Burrow has been an innovative brand since their founding in 2016. From starting out with thoughtfully designed couches to recently expanding their offerings to shelving, coffee tables, and even rugs, they have continuously pushed to understand their customers and cater to their needs. And Faraday has been right there with them through it all. Burrow needed to know more about their customers so they could identify the best audiences to pursue across a multitude of marketing channels, personalize experiences, and reach new leads with ease.
Developing rich customer profiles
The first step in giving Burrow a better understanding of their customer base was to enhance their proprietary data with rich third-party data. This allowed the brand to gain real-world insight into who their customers are outside of their transactional history or web activity. Faraday dove into third-party data to provide Burrow with a real-world understanding of their customers, allowing the brand to identify key insights and make sense of the customer behaviors that were crucial to the brand’s growth.
Compared to the rest of the U.S. population, Burrow customers had a few key lifestyle patterns worth paying attention. For example, the analysis told 2x more likely to own dogs, 2x more likely to travel, and 2x more likely to read.
When the brand first launched, the insights Faraday provided — particularly around different types of customers’ buying habits — to Burrow were invaluable. Burrow found that details in their customers’ life stages often indicated whether they would purchase a light or dark colored couch. Activating on these insights, Burrow curated personalized ad creative and messaging for their campaigns to reflect their target audiences’ predicted couch color preferences.
Reaching more likely buyers with Facebook Ads
Like many DTC brands, Facebook Ads is one of Burrow’s primary customer acquisition channels. But restrictions to Facebook's audience insights limited Burrow's ability to optimize their existing campaigns. So Burrow's digital team created a new set of custom audiences using a combination of propensity predictions and personas built with Faraday. Using likely buyer audiences built with Faraday, Burrow's customer acquisition costs reduced by 88%. Along with improvements in performance, Burrow gained a better understanding of which audience segments would provide a higher returns on their ad spend.
Enhancing omnichannel with location-based predictions
Burrow paired their online product launch with brick-and-mortar showrooms, placing their couches in businesses across the country to entice potential buyers. They were pretty sure this initiative was successful, but to prove it, Faraday analyzed the markets where they were operating and found that the closer a customer was to a showroom, the likelier they were to buy.