Scandista: e-commerce excellence
Transforming ROAS and Profitability for Scandista in the highly competitive Online Furniture Category
Client Background
Scandista, a startup furniture e-commerce site, faced a daunting challenge. Selling undifferentiated products in a highly competitive market. They struggled with low Return on Ad Spend (ROAS) despite a significant advertising budget. Their previous agency, a well-known firm, failed to deliver results, leaving the client in a precarious position with a ROAS of just 2.1x.
The Challenge
The business' low margins and ineffective advertising efforts threatened their profitability. Despite an aggressive pricing strategy, the campaigns, primarily on Google Ads, were operating at a loss. Our task was clear: enhance ROAS significantly, enable sustainable profitability, and explore untapped channels for their products.
Our Approach
We conducted a comprehensive strategy review and developed a tailored solution. Recognising the emotional connection customers have with furniture, we recommended an integrated campaign approach. This involved augmenting their existing Google Ads with Social Media and Electronic Direct Mail (eDM). Facebook and Instagram, due to their visual appeal and affinity with the target market, were pivotal in our strategy.
Additionally, we leveraged our technical expertise in performance marketing tools and techniques. Our team implemented advanced keyword research, produced compelling advertisements, and employed state of the art digital tools that drove continual improvement. This, combined with strategic retargeting, enabled by extending into more channels, ensured a holistic approach targeting consumers at all stages of the marketing funnel.
Implementation & Results
The results were remarkable. Within a month, we doubled the client’s ROAS. By the end of the third month, average weekly ROAS had soared to an impressive 6.5x. More significantly, our strategy allowed the client to increase their margins and raise prices without compromising sales volume.
Key Achievements
Doubled ROAS within the First Month
Our multi-channel approach led to an immediate boost in ROAS, providing a strong foundation for sustained growth.
1
Average Weekly ROAS of 6.5x
By the end of the third month, Scandista experienced a consistent ROAS of 6.5x, surpassing industry benchmarks and ensuring profitability.
2
Increased Margins and Raised Prices
ur strategies not only increased profitability but also empowered the client to raise their product prices, enhancing their revenue further.
3
Holistic Profitable Advertising Mix
Through careful consideration of media spend, agency fees, campaign-driven sales revenue, and associated costs, we developed a profitable advertising mix that optimised the client’s advertising budget.
4
Conclusion: Redig transformed Scandista’s online presence, turning a struggling advertising campaign into a thriving, profitable program. By combining technical expertise, innovative strategies, and a deep understanding of customer emotions, we not only more than doubled the ROAS but also empowered the client to increase margins and product prices, ensuring long-term sustainability and growth in a highly competitive market.
