Online Fashion – Nordics

Only in 1 month: how did we increase the number of orders by 70%, revenue by 27%, optimise ROAS from 989% to 1927% and reduce Cost Per Order from 246 kr to 94 kr?

In the very first month of the cooperation (July, 2023), almost all the performance metrics got improved.
Detailed report can be found in this link.

  • Number of transactions: 70%+
  • Revenue: 27%+
  • ROAS (Return On Ad Spend): from 989% to 1927%
  • CPA (Cost Per Acquisition – Orders in this case): from 246 kr to 94 kr
  • CPC: from 3.09 kr to 2.18 kr
  • eCVR: from 1.1% to 2.21%

Let’s see our approach behind.

Problem Statement

Online fashion has many specific challenges to tackle – such as high churn rate along the checkout funnel, high return rate after delivery, strong competition, many international players.
Not an easy battlefield from ecommerce perspective.

The company we helped out faced relatively low conversion rates (around 1%), climbing CPA and dropping ROAS (Return On Ad Spend).

Even though their offline merchandising performed nicely, the online part didn’t hit the bottomline. They faced a decision point to either scale down their online operations or give it a boost if certain KPIs can be met.

Solution

After a thorough analysis, we concluded 2 main issues.

  1. some single-product special offers shall be set – sometimes even with discounts – as it boosts impulse purchasea which are quite common in online fashion. Although it may lower the average order value, it also persuades hesitant prospects to finally start purchasing from a vendor, and ultimately it brings new customers and extra sales.
  2. the campaign setup was very simplified (only Performance Max left alone with no proper optimisation, no separation among asset groups, etc.).

The Partner took care of the product offerings, created some special promotions with a bit of extra taste to potential customers.

In the meantime, we re-configured the existing ad campaign, optimized the product feed and set up new campaigns.
The ad budget was really tight – below 2000 EUR (20.000 Norwegian Krone) a month. Understandably at a historically low return rate, budget couldn’t be scaled before meeting certain profitability metrics (ROAS, CPO, etc.).

R

Results

In the very first month, even from a lower ad budget, all metrics got massively improved and only the average order value dropped at a certain level due to the single-product sales approach.

  • Number of transactions: 70%+
  • Revenue: 27%+
  • ROAS (Return On Ad Spend): from 989% to 1927%
  • CPA (Cost Per Acquisition – Orders in this case): from 246 kr to 94 kr

As profitability got met, scaling can be started.

Obviously we can’t promise such good results in 1 month in every case, however, if campaigns are not properly managed or an important set of campaign types is not covered, the room for improvement can be massive even in a short period of time.

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We would be glad to also help your business grow.

Let’s discuss your challenges and how we can contribute to your business success.
We arrive at the session prepared, already with some ideas and marketing tactics tailered to your business.

The consulting session is free of charge, no further commitment is required.