Business Case – The tale of the robot and the carpet king
- October 16, 2020
It might have a magical title, but believe us, this business case will have some technical wording, and facts that will leave you astonished!
The Client
Feira dos tapetes, makes a contact to Logrise interested in the Amplifier product. As with any business, the dating game goes back and forth. Yet the client (or at this time, possible client) decides to challenge us to confirm the premise of our little robot.
In addition to the challenge of achieving more and better with a reduced budget, we also know beforehand that we would be competing with other agencies.
The Challenge
The challenges were many, that’s why we’ll list our concerns here for your viewing:
- We had a 30-day proof of concept to show results;
- In addition to the external competition, we would also be competing with the results of the previous month. Knowing beforehand that results may greatly vary from month to month, we would still have to analyze the period in question to see if it was conducive to sales of our client’s products;
- Short data analysis time until the implementation of the Amplifier;
- The Feira dos Tapetes already showed good results (would it be possible to do more and better?);
So much to do, so little time and as the saying goes, “we are only human” but robots aren’t …
The Solution
We implement our Amplifier to collect data at maximum strength!
Afterwards, the Amplifier generates a report, and while analyzing it we identified the following optimizations:
- Predominant Genre
- Device with more sessions
- Interests
- Where they live (region)
- Age range
It may seem ridiculously basic, but when applied well and refined, the effects are overwhelming.
Now comes the most interesting part of Amplifier, it is to be able to cross all this data, in a matter of a few seconds, with those who really shop. Therefore, and putting it in a list to better understand it, all the data mentioned above were crossed with:
- Sessions x Sales x Days of the Week
- Sales x Quantities x Days of the week
- Sales x Quantities x Days of the Month
- Sales x Quantity x Products per purchase x Cost per Conversion x Daily Campaign cost x Revenue
and finally…
- Sales x Quantity x Products per purchase x Cost per Conversion x Daily Campaign cost x Revenue
“…Amplifier managed to generate a quarter of ad revenue with just 20% of the budget.”
Digital Marketing Investment
The Digital Marketing strategy was focused solely on the Google Ads platform. The client said that we would only have 20% of his monthly budget for the proof of concept, which would translate to 6.66 €.
In total, and counting with our own campaign, there were 7 campaigns. The truth is that in just 30 days of experimentation, Amplifier managed to generate a quarter of ad revenue with just 20% of the budget.
This result made it the second campaign with the most revenue, but we will analyze those numbers below.
The Other Campaigns
We are not going to go into details and numbers in regard of other campaigns, but we want to emphasize that all campaigns were working for a whole, and we want to make it clear here that when we talk about general numbers, we are also giving full recognition to what was done by these campaigns.
“...Amplifier managed to generate a quarter of ad revenue with just 20% of the budget.”
The Strengths
A brand already consolidated in its area and recognized by many, also had several years of advertisements and data that we could analyze.
The level of account is very well structured and easy to understand for those who had never seen and who had little preparation time.
In terms of branding, very strong campaigns with great results.
As mentioned in the previous section ‘The Other Campaigns’, recognition of what was done before Amplifier has to be given, as in Digital Marketing, there is continuous work in which the evolution of metrics is always sought either organically or through paid channels.
The Strategy
With what we said in ‘The Solution’ section, we went towards that line of thinking knowing that we would thrive in terms of results.
We crossed the metrics, created a strong branding campaign, with closed keywords and regions we optimized hoping for a good conversion.
Percent bids were placed on the electronic devices with the highest conversion in order to gain greater traction, to improve the CTR and to open the possibility of increasing the conversion rate.
In the middle of the campaign, there was a small drop in sales identified automatically that suggested a product display upon search recommended by the data provided from Amplifier where it crossed the Drop Rate and the Product’s revenue thus creating a kind of Best Sellers that in reality were the products that would most favorably be sold and not the best selling.
The numbers
30 days.
30 days of campaigns to feed these numbers.
And, of all the numbers that are possible to see in a Marketing report, here are the KPIs (Key Performance Indicator) that reveal success. These figures are from the totality of the campaigns and compared to the previous period. We will enter the individual data of the Amplifier in the following section below.
Clicks
17 127
7.8%
CTR
4.55%
6.7%
Impressions
376 068
1.1%
Clicks – The number of times a user clicks on an ad from this customer’s account, a reasonable increase of 7.8%.
CTR – The Click Through Rate. For many Marketeers the optimal value is 2%, here it is 4.55%, having increased by 6.7%.
Impressions – In terms of impressions an increase of 1.1%. An Impression is whenever the ad is shown in a search.
Now, these 3 KPIs are interconnected because there is no CTR without a Click and there is no Click without an Impression.
The explanation for these results being considered successes is the fact that with the increase in impressions, there was a greater increase in clicks, thus influencing the final CTR, translating into the optimization of the target audience and how advertising is being directed to the right segments.
considerados sucessos é o facto de que com o aumento de impressões, houve um aumento maior de cliques influenciando então o CTR final, traduzindo-se na optimização do público alvo e em como a publicidade está a ser direcionada para os segmentos certos.
Cost
0.2%
CPC
0.06€
-7.1%
CPM
-0.9%
Conversion Rate
0.81%
9.6%
Cost – What was spent in terms of ads, there was an increase of 0.2% explained by the fact that the Amplifier campaign entered the budget for this month.
CPC – The Cost per Click. 0.06 € per click is impressively low, but having it dropped 7.1% is even more impressive.
CPM – The Cost per Thousand Impressions. Translating this into math: every thousand impressions the Google tool is paid a certain amount. And just like that we see another expense dropping here despite the fact that a new campaign has joined the others.
Conversion Rate – Impressively an increase of 9.6% where in the previous period there had been a decrease of 18.2%, not only was this decrease recovered but also increased.
Another 4 KPIs that demonstrate the quality of the work done, there were increases where we wanted them and decreases where they should be.
Sales (Goals)
12.3%
Cost per Conversion
-12.1%
Recipe
33.2%
Sales – Basically, it is the number of times that a sale was successfully completed, an increase of 12.3% over the previous period.
Cost per Conversion – The important thing to remember here is that this cost has decreased by 12.1%, being now cheaper and more profitable by order.
Recipe – The dough – the moola – the scratch – the wonga that the campaigns yielded. A fantastic increase of 33.2%
The last 3 KPIs that summarize everything that has been written so far.
More sales, more profit, less acquisition cost - the essential, the crème de la crème of any marketing campaign.
The Amplifier
In these 30 days analyzed, we give you the individual numbers of the Amplifier:
- Of the revenue influenced by the ads, Amplifier is responsible for 16.02%, with only 1 ad in “competition” with 6 more, with a final result above the average
- Amplifier only used 17.67% of the available monthly budget
- Amplifier increased the average purchase / sale by 8.19%
- Amplifier also helped with the following KPIs: more sales (12.3%), lower cost per conversion (-12.1%), more clicks (7.8%), increased CTR (6.7%), more impressions (1.1%), lower CPC ( -7.1%) and more revenue (33.2%)
Throughout this Business Case we gave proof how Amplifier helped this business to reach a new level. What about you?
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