Jani KahukiwaSenior Client Manager Carmen Lee gives us valuable insight into how she turned a client’s performance into a veritable success story. With the help of the Solutions 8 team, Carmen switched the campaign from Performance Max to Standard Shopping, and within two months, the revenue doubled. This simple step transformed everything!
To give readers context, our client is in the competitive UK market of children’s pushchairs and buggies, otherwise known as strollers. Many companies sell the same products for infants and toddlers, making it difficult to truly stand out in this sector.
The Advantages Of Switching To Standard Shopping
The initial Performance Max campaign was switched to Standard Shopping in November 2023. It was a brilliant first step for our talented team to take and it yielded the results that we wanted.
Standard Shopping has one main advantage: it allows us to break up each product into individual categories, giving us more flexibility and control over the search terms.
Standard Shopping campaigns have their own unique search terms.
In terms of strategy, this made it easier for Carmen to closely manage the budget for each product which was an added benefit, especially when the client had a surplus of stock or wanted to increase the budget on a popular model.
This is not possible with a Performance Max campaign.
Let’s See What MER Did As A Result
It took approximately two months for the campaign to pick up. With the revenue at £27,000, Carmen started with a budget of £5,500 for December 1 to 31, 2023. Up to this point, MER had remained at about 3-4X. Simply by switching over to Standard Shopping, MER now came in at an impressive 4.92%.
The client’s goal was to hit a 5.5X MER overall. As the Standard Shopping campaigns learned more, the Solutions 8 team doubled the revenue. MER rose to 7.5 in January with an ad spend of £7,548 without the client advertising on any other platform besides Google Ads.
One Key Element To Make Our Client Stand Out From Competitors
As a team, we decided to focus on one key factor to help this retailing company differentiate itself from competitors in the same market. There was little difference between them: They all sell pushchairs and buggies for infants and toddlers.
There was one fundamental difference with our client, however, that we were able to use to our strategic advantage. Our client offered a service that very few competitors do: refurbished products.
Customers had the opportunity to return their used products to the seller who then went on to resell them at a lower price point.
As a result, this helped the client to stand out among the numerous competitors. It drew in new customers simply because the product they were interested in was listed at a far lower price than any other seller.
What’s important to underline here is that the customers were on THEIR website and no one else’s.
Now, since the customer is on our client’s website, something curious but not wholly unexpected occurred. It so happened that the new customer would often purchase a full-price product. Sometimes they purchased the same item, and sometimes a completely different model.
New Customer Acquisition
This is a clear demonstration of the power of drawing in new customers. New customer acquisition remains a significant factor in getting customers to buy your product.
Clicking on the cheaper refurbished product got these customers onto our client’s site. And since all competitors offer pretty much the same products at the same prices, it came as no surprise that they went on to purchase from our client.
More often than not, these customers did not buy the refurbished item but instead bought full-priced products. As seen in the diagram below, the price of the refurbished item is considerably lower than the full price on the left.
And to think it was the low price that got the customer interested in the first place!
Can A Refurbished Shopping Campaign Work For You?
A Refurbished Shopping campaign is a fantastic strategy to use in a sector where there are few opportunities to stand out among competitors. And of course, it’s important to note any client who goes down this path must have the capabilities to offer such a service.
Paying attention to details and flawless customer service makes the offer more appealing. No use offering something that a company can’t follow through on.
Price differentiation was fundamental in giving leverage to this Solutions 8 client compared with other retailers. Remember, it was the competitive advantage that helped them double their revenue in a space of just two months.
We hope these brilliant insights give you and your next campaign the upper hand and will bring immense value to your client’s revenue. Check out more success stories from the Solutions 8 team!
