14 Jan Low-energy lighting case study
Low-energy lighting ecommerce sales
Paid advertising in some markets is uber-competitive, can be very expensive and margins, well, skin-tight.
“Outbid on the terms you want, based on the fact you can afford to”
The only way to succeed is to outbid on the terms you want, based on the fact you can afford to. This doesn’t mean the person with the deepest product margins wins. It means the best all-round performance will succeed.
Paid advertising is an auction after all and bids come at a premium, so getting this to be profitable will be challenging. We needed multiple tactics to make this work.
“Merchandise to ensure the offer will convert visitors into sales”
First we need to go back and tidy up the site before paying for any ads. This means working on the site merchandising to ensure the offer will convert visitors into sales. Poor conversion can kill a campaign very quickly.
Products need detailed technical guides so installers can specify them correctly. We added pdf downloads and added extensive detail to the page with alternative products too.
Every product had clear energy ratings. The dimensions, light colour, materials and quality assurances all added to this too.
“Assure them personally the product wouldn’t let them down.”
Previous customer reviews were added so we built confidence in the prospect and included our own sound bites to assure them personally the product wouldn’t let them down.
We added clear stock levels so they knew it was available and gave despatch guarantees. We told them how much delivery was, depending on the area code and a choice of carriers.
New images were added that could be scaled, with various angles and packaging.
We included bulk pricing discounts and special, flash-sale offers if they completed in the next 30 minutes. We even added a free gift to each and every order.
Campaigns went to landing pages that directly related to the search. This means the customer gets what they expect and the journey wasn’t interrupted.
“The offer was set. We ran the ads.”
We started testing ad options relentlessly to start the campaign. We removed negative keywords and products that were not converting. We doubled down the budget into the best performing ads and pushed to the highest converting pages.
“We did it!”
Our cost of sale started at 25% of sale, quickly reducing to 19% after 2 months. We continued to optimise to reach 12% after.4 months. We now have an allowable cost of sale of 9%, with 5% extra on agreed on ‘special events’.
“Win customers using Google, and pay them for that.”
Once they are a customer, market to them directly via email and messenger and focus on repeatable number of transactions.
Your customer will keep buying if you get it right, first time, everytime. Then you’re ready for an ecommerce referral programme.
If you want to talk about profitable eCommerce, contact Supplyant.