How to achieve a high ROAS* and then double it?
How to achieve a high ROAS* and then double it? Learn more from our case for a furniture company from Estonia.
?? Challenge: Increase your income by 30% and bring ROAS to an indicator of 1 to 10. Structure sales to more confidently plan steps for business development. Set up interaction and communication in the agency-client chain.
?? Situation: Despite the presence of such global players as JYSK and IKEA in the Estonian market, local businesses are the main support in the furniture sales market. This has led to increased competition to such a level that the market shares used by this company are redistributed literally every week. About ten players compete for a smaller (considering the country's 1.3 million population) number of customers.
?? Solution
?? Before the start of work, we conducted an audit of the current state of affairs and analyzed the work of our competitors and their indicators available in open sources. Based on the audit and analysis of competitors, we have developed a completely new promotional strategy.
?? In addition to the digital presence audit, together with the client, we conducted a general analysis of sales statistics in order to understand which category of goods should be primarily emphasized. Based on this, media plans were prepared for the start of work in Facebook Ads Manager and Google Ads.
?? In parallel with the selection of keywords, targets and writing ad texts, our design department worked on creating banner templates that we needed for A/B testing.
High competition in the segment forced us to look for new options for business growth, so the process of generating new ideas did not stop throughout the cooperation.
?? Results
? During the first month of fruitful work, we reduced the average Cost per Purchase from 90 euros (the result of the previous agency) to 41 euros per purchase.
? In the future, we continued to increase profitability and increase our ROAS from 1 to 6 (in the second month of work; the results of the previous agency were lower) to 1 to 9.8 (at the end of the fifth month of cooperation).
? In general, we managed to surpass the client's monthly revenue record three times.
During six months of joint work, we changed the promotion strategy more than once and tested many hypotheses, settings and creatives. Thanks to this, the client was able to confidently plan the further development of his business and open new areas of his entrepreneurial activity.
?? We were always in contact with the client (short meetings to determine the status of tasks at least twice a week, correspondence - almost every day) and actually performed the function of marketing and sales departments on the outsourcing. We, of course, did not undertake communication with buyers, but together with the client, we decided which products would be in greater demand this season, which would be relevant next week, and which would be better not to advertise at all for a while.
?? Our task was not only to create pictures, texts and successful targets, we built a sales strategy, thus guaranteeing the client the result he expected.
?? Bonus: After adjusting PPC processes and sales reaching the level desired by the client (and even higher!), we received an order for SMM support for the client's Facebook and Instagram pages. Since we already knew the niche and preferences of the target audience well, we managed to quickly write an SMM strategy, involve a designer in creating creatives, and launch brand pages that had not actually been updated before. A pleasant consequence of such a decision is the setting up of dialogue with buyers on platforms convenient for them, a pleasant appearance of all the company's social networks and a significant increase in Brand Awareness.
*ROAS - return on ad spend, i.e. profitability of advertising expenses