E-commerce case study

Client history

 

Our client is a New Zealand owned and operated business in the health and wellness sector, providing natural health supplements to women within New Zealand and Australia.
The company is predominantly selling to the New Zealand market, with Australia as a subfocus. It is available only through their website, with zero distribution to physical stores. Website traffic and digital marketing are therefore paramount to the success of building their business and maintaining profitability.

 

Legislation requires our client can only market and sell to NZ and AU at present.

 

Before working with Flow, our client saw some slow growth in traffic and sales due to their own Facebook marketing, reaching more of their demographic and creating an increase in revenue with basic ads and sponsored posts in their geographical area of business.

 

Approaching Flow in September 2019, our goal was to use our experience and knowledge of digital strategy, Facebook ads funnels, remarketing, Google Ads, and data collection to increase gross margins even further.

Our strategy – Overview.

 

Beginning with a Facebook and Instagram funnel only, Flow were able to gather insights over the first 3 months about the interests and demographics of purchasing audiences most beneficial to the client – narrowing down the most valuable customers for them, as well as increasing return on ad spend by target criteria and creatives wisely alongside rigorous testing.

 

Once our optimum audiences were created and refined, we were able to consistently generate low cost traffic, profitable margins, and increase in overall net revenue – with a 2:1 ROAS or higher each month, every month with their best month so far achieving an overall 7:1 ROAS.

SALES GROWTH

19%

Increased Sales

Gross Sales up 19% since Flow took over from inhouse digital marketing, using the same budget

120%

Increase net Revenue

Gross Revenue increased by 120% from previous year with minimal to no digital marketing in place

SALES GROWTH: 6 MONTH PERIOD 2019/20 VS. PREVIOUS YEAR

  • Figure indicates a 6 month period, compared to the same months during previous year. gross sales increased by 120% from previous year.
  • Slight upward trend suggests we have been able to maximise our budget by minimising costs as much as possible.
  • Consistent average of 2.3:1 return on ad spend on social media. (e.g $2300 return on every $1000 invested).
  • Increased sales by 19% from previous 6 months to consistently stable sales volumes.

6 MONTH CAMPAIGN

Tactics

 

Flow implemented a broad testing phase to analyse responses to creatives, copy, audience testing, and cross-over interests. Using ad funnels, we begin with product and brand awareness and ustilise re-marketing and repeat impressions to convert customers.

Different types of ads we use include:

 

  • Text and image (short copy)
  • Text and image (long form DR sales copy)
  • Carousel ads
  • Video slideshows
  • Valuable content sharing – such as informative blog posts
  • Canvas ads for mobile
  • Competitions and giveaways

Funnels

The goal of top of funnel awareness ads is often to generate the most traffic for the least cost, concentrating on CPC and website traffic content views within our target demographics. These are served to cold audiences.

 

  • We achieved $0.25 per landing page view – this is significantly lower than the $0.90-$1.20 average for New Zealand

 

We use remarketing to all website visitors and engaged social media users to keep contact with initial visitors, and nurture these leads with more information, reviews, social proofing, testimonials, and repeat impressions. This is the consideration phase.

 

Bottom of Funnel ads to those taking part in the shopping process but not completing a full conversion. For example, cart abandons. Reminders about their 90-Day money back guarantee, and providing an incentive to complete their order with 10% discount codes, helps convert these customers at the bottom of the funnel to make a purchase. Result: High conversion rate, low cost.

 

In summary, the company has exceeded their sales targets within 6 months of engaging with Flow, and have a much clearer picture of their marketing overall. They feel comfortable knowing that their marketing is well taken care of, so they can do what they love best – and are continuing to enjoy growth over time as we partner with them to scale their campaigns.