How we tripled the online sales of this historic Ligurian company with around ten physical outlets.
The partner of this case study is Andrea Morando, a Ligurian company which has been active in the fashion retail scene for over 40 years with various concept stores located in Genoa, Rapallo, Santa Margherita, Chiavari, Savignone and now also Milan.
In 2016, the online boutique was launched to meet new customer needs.
The work being carried out focused on the online boutique and the improvement of their performance.
Objective: Increase sales from the online boutique.
Strengths: Very strong brand in Liguria; Fashionable and particularly sought-after products.
Weaknesses: The brand is little known outside Liguria; High online competition.
The client’s goal was to increase sales deriving from online.
First of all, a careful internal analysis of all the data was necessary. This was to understand the main sources of traffic, the user journey and which were the best sources of conversion.
In the initial phase we thoroughly analysed all the data collection platforms on the site, in particular for this analysis we looked at Google Analytics and Facebook Analytics.
This analysis led us to understand that the online boutique had to improve its remarketing strategies first of all.
It is a powerful tool because it allows us to personalise advertisements based on the actions the user has made on the site.
Let’s take a look at some data that led us to this conclusion.
This is a comparison that Google Analytics offers us on new users and returning users.
- 71.49% of revenue was generated by returning customers. That is, people who had already visited the site in the previous days.
- The conversion rate of returning customers is 1.43%, versus 0.29% for new users.
This data made us understand the importance for an e-commerce to focus on user loyalty. In fact, people who return to our site are much more likely to make a purchase than new users.
We then investigated the data concerning returning users through a Cohort Analysis.
This table measures the user retention rate. In a nutshell it shows us the percentage of people who have returned in the various weeks.
This graph clearly shows the lack of remarketing campaigns, in fact already after one week 90% of users did not return to the store. After three weeks this percentage rose to 98%.
The importance of remarketing
Let’s focus for a moment on the importance of remarketing:
It is a fundamental tool, first of all because it allows us to personalize advertisements based on the actions that the user has made on the site.
If a user has shown interest in a certain product category (e.g. “Heeled shoes”) we could only direct them to advertisements for products that really interest them.
Thus saving budget and increasing the user’s possibility of purchase up to 26%. In fact, without retargeting only 8% of users will return to complete the purchase. (source: SalesCycle – The Remarketing Report)
It also allows us to concentrate on the advertising budget.
If a business has little budget, it makes much more sense in advertising to people who already know the business. Therefore they are much more likely to make a purchase. Rather than investing it in reaching people who know nothing about us.
Let’s see the excellent results obtained with this strategy in the first month of collaboration
We can note the following data:
- €484 of invested budget
- €6133 of products sold
- €7.02 per purchase
- 12.66 ROAS (Return on Investment)
In conclusion, for every €1 invested in advertising, the customer obtained a return of €12.66.
Let’s also see how the number of daily purchases changed thanks to the strategies introduced.
We can see that since 1st July, the date which the campaigns started, the daily purchases have gone from an average of 5 purchases per day, to an average of 15 purchases per day.
Furthermore, there have been some problems deriving from some Facebook bugs which, in addition to Andrea Morando, have affected thousands of companies all over the world.
In fact, Facebook has, for no apparent reason, blocked campaigns for policy violations, along with a number of other factors. This resulted in a drop in daily sales on 21st July.
Although this was a bad thing, it gave us further confirmation about the importance of the strategies introduced.
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