When a regional sporting goods reseller looked to take their business national, ecommerce was the most logical way to increase their footprint and expand their customer base. Trying to save on the expense of an outside partner, the reseller launched their search engine marketing campaign in-house, including their Google Shopping campaigns. A few short months into the campaign, the reseller only had one product category live and the results weren’t profitable at all; in fact they were losing money.
On their last hope, they call Web Talent Marketing to help. We accepted the challenge and looked to meet their goals, increase overall sales through their eCommerce site, and improve profitability for the campaign, especially as we were just about entering their busy season.
Our first course of action was to evaluate the market landscape for their products on both Google Shopping, as well as Text ads through the Google/Bing Search Network. Since the client is a reseller, we needed to understand how our pricing, shopping offering, etc. aligned to the competition and whether we could offer a competitive advantage for our client’s product lines.
Deviating from their single product line offering and hoping to expand their reach, we also took a deep dive into the profitability of their product lines to identify those that offered us the best potential profit margin and set a priority of what we should go live with first.
While the client was interested in expanding spend if the revenue/profit was there, we needed to be strategic about what product lines we pushed live at what times. This is from a seasonality standpoint, as well as an inventory standpoint, and lastly from a competitive advantage standpoint.
We launched slowly, with some of their low volume largest ticket items, which felt moderate competitive pressure, but offered a strong profit margin, in order to reinvest the profits into expanding the campaign into less profitable, but higher volume product lines.
After completing the initial shopping feed optimization efforts, the campaign began to showcase revenue growth, but more importantly, began to turn a profit. Feeling the impact of this profit, our client expanded their spend and we were able to expand into adjacent product lines.
After three months in which we were slowly increasing the spend and expanding the campaign, we were successful in lowering their cost per transaction, increasing their conversion rate, increasing their revenue, but more importantly, dramatically increasing their profit.
A short 4 months into the campaign, we turned a $199 cost per acquisition into a $31 cost per acquisition, all while increasing their spend 5X. This equates into a 172% increase in conversion rate, and a 1,204% increase in revenue from their Search Engine Marketing efforts.
Relative to profitability, Web Talent was successfully able to turn a $1,300 loss in the first month of the campaign (inheriting much of their old campaign), into a $43k profit.
Case Study Highlights
Industry: Sporting Goods
- Increase revenue from Google Shopping Campaign
- Decrease cost per conversion/acquisition
- Increase profitability of Search Engine Marketing efforts
- Increased revenue by 1,302%
- Decreased cost per acquisition by 60%
- Increased ROI from net loss to 3.9:1