E-Commerce Case Study: Declining Revenue and Increased Marketing Costs

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An e-commerce company which sells first aid supplies to businesses had hit a wall. Revenues were declining and the cost of digital marketing had multiplied astronomically.

Client Problems
  • Marketing vendor cost increasing
  • Year over year revenue decreasing
  • PPC budget skyrocketing and producing diminishing returns

This company was no newbie to internet sales – they’d been doing it for nearly 20 years. While the owner of the business had an excellent instinct for marketing, he didn’t have an internal marketing department, nor the time or technical know-how to execute a plan on his own. As a result, he hired individual vendors for each marketing channel. PPC, SEO, social media, and web design operated independently of one another and were paid on an hourly basis with no cohesive marketing strategy in place. The costs became hard to control.

The cost of acquiring new customers (CAC) was skyrocketing.

The cost of acquiring new customers had risen astronomically and there was no customer retention strategy. To make things worse, on top of the multiple vendor charges and increasing PPC costs, revenue was declining.

ecommerce marketing
Client e-commerce overview 2016 vs 2015. Relatively flat revenue.
ecommerce marketing
Client e-commerce overview 2017 vs 2016. Decreasing revenue while marketing costs increased.

FunnelKake’s digital marketing solution.

FunnelKake offered a complete reboot and took control of all digital marketing channels: Email strategy, PPC, SEO, Content strategy, Social media, and B2B – the entire e-commerce sales funnel, which immediately reduced the company’s marketing outlay by roughly 3X.

We also determined that the company needed a complete overhaul of their e-commerce website, due to its poor structure, challenging product hierarchy, broken pages, and confusing navigation. We moved it from the Joomla platform to WordPress with Woo Commerce, a highly complex website migration. And we did it quickly to minimize any hiccups in sales.

The path to success
To increase conversions, retain customers, and lower the cost of acquiring new customers, we developed a digital marketing plan which leveraged:

  • email marketing on MailChimp
  • less friction in the customer path to purchase
  • reorganization of products
  • highly focused keyword search PPC on Google Ads
  • B2B outreach on LinkedIn
  • regular posting schedule on social media
  • content strategy for the company blog
  • SEO strategy to improve organic search

After 1 year, this client’s e-commerce business was back on track and growing. Revenue increased by 14%, Conversion rate had more than doubled, and the Average Order Value (AOV) had increased by 10%. And by consolidating all digital marketing with FunnelKake, the client is now spending 3X less to acquire this 105% uptick in revenue.

ecommerce marketing
Client e-commerce overview 2018 vs 2017. All numbers heading in the right direction and less spent on marketing.
Client Success
YOY
Revenue up 14%
E-commerce conversion rate: Up nearly 105%
Bounce Rate decreased more than 68%
Average Order Value increased more than 10%
Lower digital marketing costs

The client recently said, “I’ve been around the block and worked with every marketing resource there is. You guys are the real deal.”

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