How to Properly Grow Your D2C E-Commerce Store

Business Model: Ecommerce

Time Frame: More Than 6 Months

Overview

An apparel and accessories client wanted to launch an ecommerce store that would increase their digital presence as well as support their brick-and-mortar stores. The most efficient way to do this is through paid advertising to drive qualified traffic to your website. All products sold by the client were also sold by resellers who had established ecommerce sites, digital strategies, and large marketing budgets. Through our ongoing tests (ad platform, creative, copy, spend, and affinity segments) on middle and bottom funnel audiences, the client’s advertising revenue saw continual growth. This growth was supported by an ever-increasing conversion rate and declining cost per conversion.

Challenge

Businesses that utilize digital advertising for the first time must “learn” how to advertise to their target audience. There is no “one size fits all” advertising structure, therefore strategic testing is needed to learn where and how to reach the target audience. Additionally, growing in markets where competitors/resellers have larger budgets and established digital strategies can create added barriers to success during your launch.

Solutions

We created 3 specific testing categories. These testing structures helped identify the habits of their most purchase active customers.

Ad Platform Testing – We created a digital campaign structure testing the value of Facebook Advertising versus Google Search advertising. The test was limited to 3 states of interest to the brand. After a specified time, purchase performance and website behavior were analyzed to understand differences in behaviors. Once the data uncovered the better performing audience based on campaign results, the budget was shifted strategically to magnify the highest converting audiences.

Copy & Creative Testing – During a 4-month window, all advertising creative and copy equally tested a variety of “selling points” to uncover the best way to position the client’s products to drive strong purchase performance. All poor performing selling points were analyzed for common themes. Based on the results of the analysis, new ad copy themes resulted and generated stronger purchase results.

Spend Testing – Ad spend was allocated equally for the initial go-to-market launch. Once the campaigns began to mature ad spend was strategically reallocated based on performance within a predetermined period. Advertising spend shifts were high enough to impact change, but low enough to not disrupt the current successes. 

The Results

After three months of consistent testing, the client’s ad accounts received enough data to drive even better results over the next three months. The tests were able to uncover sub audiences within the client’s target audience, which we further engaged with in the next three months, resulting in strong results.

Advertising Results: Month 1-3

  • $16K Ad Spend
  • 120 Purchases
  • $130 Cost Per Conversion
  • 3% CTR

Advertising Results: Month 4-6

  • $16K Ad Spend
  • 280 Purchases
  • $56 Cost Per Conversion
  • 2% CTR

Why is This Important

In order to see success in digital advertising, you must learn how to engage with your target audience. Once you see what works best, you can start to scale. Generally, 3 months is enough time to test and understand the best way to engage with your audience.

In this example, the first three months helped create a very effective advertising structure which saw nearly 3X the purchases while maintaining the same advertising spend in the following three months.

If you have questions or want more information on how to launch an ecommerce store that complements your brick-and-mortar stores… Contact us today!

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