Ecofamily
How did the revenue get tripled within 1 year from 2021 to 2022?
By fixing measurement, fine-tuning their existing paid media campaigns (mostly Google Ads, Facebook Ads) and opening up to some new channels (such as: Display & Video 360, TikTok Ads, Microsoft Ads), online revenue boomed massively (306% compared to previous year), hitting 4+ Mio EUR annually and keeps growing heavily.
Paid Media contribution to all these is 65%!
Problem Statement
Ecofamily as a discount store targets a highly competitive market segment – primarily 2 product ranges: food and household products. Competitors are Tesco, Rossmann, Lidl and many other international brands. The Company has had a stable offline presence with 56 physical stores, however, online presence was very limited and underutilised until 2019 when their webshop kickstarted. The strategic transformation to online was a true challenge for 2 reasons.
Firstly the company had already lagged behind immensely from other industry players who had all the resources and international expertise to outperform local players.
Secondly it is always challenging to opening up from offline to online. It requires an organisational mindset shift.”
Domain: ecofamily.hu
Industry: online retail (mostly food + household products)
Employee: 1100+
Partnership with Markestic: since early 2021 - ongoing
Main competitors
Head of Marketing and Public Relations
Solution
Our cooperation started on 2 simultaneous fields: measurement and campaign management. Online measurement was in place but only the basics were configured.
We advanced it to a full enhanced ecommerce setup in Google Analytics through Google Tag Manager, fixed all Facebook and additional event tracking by which much more data got collected (product categories, sales funnel, etc.) as well as proper campaign optimisation could get started. What gets measured gets improved!
Formerly paid media campaigns were partly managed by the in-house team and an external agency from whom we took over each and every paid channels. Product feeds got fixed and re-categorized thanks to which we achieved far better Return On Ad Spend and better margins.
New prospecting campaign types (awareness campaigns, winning games, short-term promotions, DPA prospecting) got maxed out to increase reach, brand recognition and ultimately gain market presence among fierce competitors.
Besides Google and Facebook, additional channels have been tested – such as Display & Video 360, TikTok Ads, Microsoft Ads. In addition, some marketing tools got implemented – such as click fraud prevention to filter out fraudulent web traffic and Google CSS to lower the cost of Shopping campaigns.
Results
Let the numbers talk. From 2021 to 2022:
- online revenue tripled – out of which paid media accounts for 65%
- search volume for brand related keywords (‘ecofamily’) grew 17 times since early January, 2021. This strong online brand awareness also boosts the offline sales within their physical stores.
- CPO (Cost Per Order) got reduced by 27% due to lower CPCs (Cost Per Click) and increased CVR (conversion rate) even though the market has got more and more crowded.
- as of now (2023) Ecofamily has a steady 2-digit annual growth rate.
Online processes are clear, measurement and reporting are detailed, decision-making is fully data-driven and we are mutually planning for further expansion.
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