When it comes to ecommerce, there is no such thing as a small business. Any store with an online presence has the potential to grow into a major player in their industry, and that’s why we’re so excited to share this story of success.
In just eight months, an online fashion ecommerce store has generated EGP 26 million in GROSS SALES! That’s a testament to the power of the digital marketplace, and it’s something every business owner should aspire to achieve. So what can we learn from this company’s incredible growth? Keep reading to find out.
When we started digging, we had no idea that we would reach EGP 26 million in sales within just 8 months. But with a lot of hard work and dedication, that’s exactly what happened. In this case study, we will share the strategies and tactics that helped us achieve this success so quickly.
Strategy is Key!
When it comes to achieving success for your ecommerce store, strategy is key. We spent a lot of time researching the market, our competitors, and our customers to come up with a winning strategy. Our strategy was to focus on building trust with our customers by providing them with high-quality products at competitive prices. We also focused on creating an intuitive user experience for our website so that customers could easily find what they were looking for and make purchases quickly and securely.
Once we had a solid strategy in place, the next step was to focus on marketing. We knew that if we wanted to achieve ground breaking sales, we needed to get the word out there about our store and its products. To do this, we developed an effective multi-channel marketing campaign that included email campaigns, social media advertising, and performance marketing. By leveraging these channels effectively, we were able to drive more traffic to our website and increase conversions significantly.
Achieving EGP 26 million in sales within 8 months may seem like a daunting task but it is possible—as long as you have the right strategies in place! By focusing on having an effective strategy, investing in marketing campaigns across multiple channels, and providing excellent customer service support—we were able to do just that! If you own an ecommerce store or are thinking about starting one then use this as motivation–you can achieve great things too! Good luck!
Achieving a 2.7X return on ad spend (ROAS) may not guarantee a profitable equation, as a matter of fact it’s considered to be a threat to the business sustainability. Moreover, it could signal that the marketing strategy is not effective and should be revisited.
While this metric is a good indicator of how well campaigns are performing, it does not take into account other factors that may influence profit, such as the customer’s lifetime value (LTV), website conversion rates & other variable costs – bearing in mind that the store had over 3000 products with new arrivals everyday!
The client’s campaigns lacked structure and uniformity on their AD account, which caused inconsistency and confusion among customers.
This hampered the ability to measure and analyze the effectiveness of the campaigns.
Additionally, creative and product testing phases were skipped, so there was no defined winner product for the business. Without this step, it was difficult to know which product would be most successful for the company.
We had to start the testing phase during a period of congestion, where every other brand is already in a much more stable phase and constructing offers for Black Friday!
The Realization: In order to hit our target of 2000 orders per month, we need to maintain an average order value of EGP 1000 and a cost of purchase of EGP 250.
Additionally, our ROAS needs to be at 4 or higher in order to ensure profitability. This means that for every EGP we spend on advertising, we need to bring in at least EGP 4 in sales.
THE WAY FORWARD 🎯
We started monitoring all the existing campaigns and stopped the overlapping campaigns. We then implemented a criteria for testing phase that focused on:
- Ad copy
- Bidding strategy
- Landing pages that convert
As you may be aware of, the sales funnel is essential to ensuring a high conversion rate. First, visitors come to the website and are exposed to your brand. Then, they move through the various stages of the funnel, from awareness to interest to desire. Finally, they make a purchase.
However, there are many potential friction points along the way that can cause visitors to drop off. That’s why it’s important to regularly audit the sales funnel to ensure that everything is running smoothly.
This includes testing and validating website events, eliminating friction from the website flow, optimizing website speed, revising information collected at the payment page, and ensuring that product pages are updated with accurate product description. By taking these steps, you can help ensure a high conversion rate and a successful online business.
THE FUEL 🎯
Now that we’ve looked at what’s required for the testing phase, it’s time to summarize what we need to do in order to be successful.
The first step is to identify our offering plan. We need to come up with a strategy for communicating our offers during the testing phase. This includes developing promotional material and making sure that the product’s specs and unique selling points are mentioned in all product descriptions.
We also need to gather social proof and reviews. This will help us to build trust with potential customers and increase conversion rates.
Finally, we need to carry out a historical sales analysis in order to identify areas of improvement. By understanding our cost per purchase and AOV, we can develop a strategy for maximizing revenue during the testing phase.
What Will Be The Testing Methodology..🧪
The purpose of testing is to determine which creative assets, ad placements, bidding strategy, and landing page will result in the most conversions. By conducting tests, you can figure out what works best for your business and optimize your campaigns accordingly.
For example, you may want to test different ad creatives or try different bidding strategies to see which results in the highest conversion rate. You may also want to test different landing pages to see which one drives the most conversions.
Ultimately, the goal of testing is to find the best possible combination of factors that will result in the most conversions. So don’t be afraid to experiment with different combinations and see what works best for your business.
The Outcomes of The Testing Phase..✅
A- The Winning Creative Asset!
Post the testing phase, it turned out that the winning creative assets were short-form video content “Reels”. Through using reels we were able to showcase the variances of single products The main features of the reel that they Shows all variance of a single product, and this helped us to spot winning products and gave us the opportunity to scale on them.
B- The Winning Placement!
Post the testing phase, the placement that got us the most results were stories. The reels we created performed best there. And it’s also worth mentioning that our competitors were not doing the same, which gave us a good advantage and great head-start!
C- DPA Campaigns!
We used catalog sales campaigns on top selling items in the same product set and we started scaling on them which allowed us to generate new acquisitions.
D- Custom Audiences & Lookalikes
We have been testing different lookalikes of our current customers in order to find more prospects that might be interested in our products. We found that using a custom audience based on our high value customer list helped us to raise our ROAS.
E- Bidding Strategy!
We have tested all available bidding options, till we found that using ROAS as a bidding strategy is the best for the ad account. After iOS 14 updates, we found that Ads Manager reports 50% of purchase events, so we optimized our campaigns at ROAS 2.5.
F- Landing pages with the most conversions!
Shopify reported that the homepage of the website generates the most conversions. So, we decided to leverage that and use it as a landing page to test all our creatives. And, since it contained a new arrival section, it helped us to increase the AOV as well!
We have had great success with 20 products out of the 200 products we have tested.
At the Scaling phase, we gathered all the insights we obtained from creative testing and scaled it up with a catalog sales campaign using Target ROAS as our bidding strategy.
The results were overall great for our client. It’s been an amazing journey, and we couldn’t be prouder of our team and this accomplishment
One of the most important elements of this project was our use of data-driven insights to track progress along the way. This allowed us to adjust elements quickly if needed while still staying focused on long-term goals.In addition to monitoring customer behavior on the site itself, we also monitored customer feedback from various sources such as social media channels or review sites so that we could respond immediately with any necessary changes or updates.
At Hive Analytics, we are dedicated to helping businesses reach their growth goals through data-driven strategies tailored to each individual business need. Our new case study is a great example of how an effective ecommerce optimization plan can have huge results in just 8 months time!
If you’re looking for ways to optimize your online presence and boost your sales then contact us today! We look forward to helping you take your business success even further! Thanks for reading!