Janet is the founder of a homewares store and found herself in the classic e-commerce dilemma – while her products were well-loved, sales growth had flat lined and fluctuated between $20k – $30k per month. Janet’s customers where loyal and raved about the unique, high-quality homewares in her range by leaving glowing reviews, but there was a clear gap between the number of visitors and the volume of purchases. Conversion rates sat at a disappointing 1.6%, and despite her strong product range, she was struggling to grow.
At Phase 3 Ecom, we believe that every successful e-commerce store is like a well-tuned machine – every part must function in sync to generate maximum output. Here’s how we applied our philosophy and helped Janet grow her online sales.
CRO & Heat Map Tracking: To further understand user behaviour, we implemented heat map tracking which revealed some surprising insights. 26% of users weren’t scrolling past the homepage banner. We redesigned and reduced the size of the banner and restructured the homepage to showcase advertised and popular products earlier in the browsing experience, leading to a 46% increase in total product page visits.
Tech: Like many ecommerce stores, Google Analytics was installed but not configured properly and therefore not capturing valuable data. Janet also had a Google Merchant Centre account set up but the feed wasn’t connected from the store. As soon as Google Analytics was properly configured the data quickly revealed that the Meta and Google Ads were not contributing at all to sales.
Social Ads: Despite Meta telling a different story, Google Analytics revealed almost non-existent sales from the existing campaigns. We paused all the current image based Meta ads and relaunched with a campaign targeted specifically at interior decorators. We engaged a number of content creators to generate UGC review videos and re-edited them to create the Facebook, Instagram and TikTok ads. These new video ads had a 78% higher click through rate than previous campaigns. The combination of a targeted audience and the user-generated content ads delivered an impressive 76% increase in sales from these three social channels on the exact same spend.
Email Marketing: Email marketing was a key pillar of our strategy. We implemented segmented campaigns targeting existing customers with tailored offers and reminders about their previous purchases and new lines that would complement their previous purchase. This resulted in a 21% increase in repeat purchases and an open rate of 40%, far exceeding industry averages.
Omni-Channel & Marketplaces: Despite Janet’s initial reluctance to move into omni-channel, she is now glad she did. By launching Janet’s store onto only Amazon, within only 3 months after listing, this one channel accounted for 23% of total revenue. We are currently in the process of adding eBay and Catch into her Marketplace mix.
Here’s what we achieved:
Unique Approach: We chose to invest in low cost growth solutions like email and marketplace expansion instead of quick wins like aggressive ad spend and discounting. This ensured that Janet could protect her margins and profits and the store could grow sustainably without sacrificing brand value. The focus on data accuracy through Google analytics, server-side tracking and click fraud monitoring also helped protect her ad spend and deliver maximum results from tight budgets.
Surprising Findings: Sales to Janet’s existing client base were being left on the table. From a standing start, the introduction of the Klaviyo email marketing platform delivered immediate results and now accounts for 16% of all total sales and growing. Just goes to show that sales can be sitting right underneath your nose, you just got to know how to unlock them.
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