STRATEGIC INVESTMENT FOR DRIVING ROI GROWTH
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The Problem
Brands often encounter the challenge of ROI growth on their e-commerce sites. Digital marketers tend to believe that ongoing optimisation through paid media is the only effective way to improve the campaign ROI.
Sometimes the problem is not about the optimisation or the brand’s product itself, but lies in lacking new customers coming into the brand owned e-commerce store (i.e., website, TMALL store, or WeChat mini-program store, etc.).
Our initial diagnosis
After running a diagnosis, we found out that the brand had fairly competitive popularity against their key rivals on key social media platforms, but for obvious reasons, the sales was not growing. Our analysis indicates that the brand had been heavily relying on repeat purchases for its e-commerce revenue growth while missing the big opportunity of driving constant organic traffic.
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Step 1: Take a step backward - don’t rush into driving incremental sales as the immediate next step.
Our approach lies in boosting the growth of organic traffic. We would first look at the top sources of organic traffic and organic revenue on specific media platforms.
Step 2: You will then learn that the top sources of organic traffic and organic revenue are consumer actions that could be scaled up by paid media, such as the number of consumer searches, the number of site visits, and account follows.
Step 3: Once the sources of growth and paid media tactics are identified, understanding what to expect is crucial. The strategic approach is to assign corresponding sets of budgets to define clear objectives, leverage the right sources of data to grow the follower base, while driving immediate sales.
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Turns out we delivered satfisifying result to the brand through increasing the follower base by 10%. In the first three months, the ROI grew by 150% from solely running the ongoing performance ads to adding recruitment ad in paralle to boost the organic traffic and grow follower base on purpose. Consequently, the ROI is increased by 2xx% and the revenue climbed up to 400% in six months by simply spending the same amount of a regualr camaign budget (as the graph shown below).