Our client is an Ecommerce based out in New Zealand that sells both new and pre-owned gadgets and toys. Because of New Zealanders’ thrifty mindset, Our client sells used products along with new products. However, they primarily focus on gadgets, particularly gaming consoles and mobiles.
Since they started as a seller in a New Zealand auction and the classified site named TradeMe, they had an idea about running an Ecommerce. Let’s dig deeper of how we achieved 66x ROAS of this Ecommerce.
To ship new and used gadgets around the world at an affordable price.
- To increase qualified traffic sessions to the website through promotions.
- To increase the conversion rate.
- To increase overall ROAS (Return on Advertising Spend).
KPIs(Key Performance Indicators)
- Ad expense
- Engagement Rate
- Traffic session
- Conversion rate
- AOV(Average Order Value)
We analyzed that Google Searches works better than any other channel since our client sells products that are already popular enough. Hence, we decided to focus on the BoFu (Bottom of the Funnel) customers through Google Ads targeting those who directly search for the product(s).
In addition, we optimized the technical SEO of the website by removing the negative keywords from the website and optimizing its page title and product title to rank better in SERPs. When combined with Google shopping performance ads focusing on BoFu keywords, it resulted in a spike in traffic sessions by 16% and increased “Add to Carts” by 4x.
2. Conversion Rate
Conversion rate is one of the most important KPIs for Ecommerce, and our client’s conversion rate needed to perform better than usual.
When analyzed, we identified that the conversion rate drops in the middle of the month that remains unchanged till the end of the month. This is because the average working person would spend only when he has more money which is mostly at the beginning of the month.
To eliminate this situation, we enabled customers to buy throughout the month by implementing BNPL (Buy Now Pay Later) feature.
We then further increased the conversion rate by retargeting ads.
We started with segmenting the website visitors based on the following behaviour metrics:
1. Engagement rate
2. Product page visit
3. Checkout visit
With the segmented customer data, we pushed retargeting ads that remind customers about their abandoned carts, changed product prices, and promoted the BNPL feature.
All these measures increased the conversion rate by around 1% where the overall conversion rate spiked to 1.81%
ROAS(Return On Advertising Spend) is the only metric every business owner needs to understand from their marketing measures. To increase this, we need to increase the average order value of the orders.
We increased the order values by promoting products that are of high prices. As we have already optimized the website traffic and conversion rate, only filtered qualified customers will see the ads that we promote, and that leads to the increase in ROAS by 66x.
This resulted in an increased average order value by a whopping 70x with the Average Order Value at $680.
Looking to make your business run this good? Feel free to reach out to us for a FREE consultation on your business.