In our first month with LeVoile, we were setting up many different types of audiences in different market segments in order to understand who was most likely to take action.
During this time period, LeVoile gained two retargeting sales and one cold traffic sale. The ad spend was more than purchases in both audiences. The add to cart and initiate checkouts guided us to which audience segments are interested in the brand and want to learn more. This month was great for obtaining data on their brand new Facebook pixel.
This month we continued testing new audiences and honed in on the best performing. Retargeting brought in several sales but we wanted to shift focus on finding new audiences. While the new audience testing resulted in a lot of add to carts, no purchases were made. When there is a lot of positive activity (such as add to carts) on an ad but failure to convert, we have to analyze where along the sales process there might be something that needs addressing.
Month two brought in a lot of add to carts and initiate checkouts, but no purchases. This typically indicates there’s an issue on the website side, not on the ad side.
There are many variables that may hold up a sale. Cost of shipping too high? Are returns free and easy? Is the price point too high? Is checkout unintuitive? Is there a poor mobile experience? If people are responding to the ads in a positive way but not completing the purchase, you must experiment with offers and try to get in the mind of the potential customer.
With so many people used to Amazon Prime free shipping and returns, one of our theories was that people were too nervous to try something new and expensive, without the confidence of being able to send it back easily. The other theory was perhaps people were simply uncomfortable with the high price, or maybe even a combination of these factors.
With this insight, we decided to run ads that improved the shopping experience for customers. What worked? We tested between a coupon code to COLD traffic and offered free shipping, with free returns messaging for new customers. The audiences were very receptive to this messaging, resulting in a huge increase in sales. Finally, the ad spend was LESS than the sales value.
From month one to month three of partnering with Petrucci Marketing, LeVoile experienced:
- 394% increase in return on ad spend.
- 368% increase in purchase conversion value.
- 84% increase in people adding items to their cart.
Introducing a new brand product into a saturated market is an incredibly challenging task. Most customers stick to the brands they already know and love. Customers in this instance did prefer the free shipping and free returns offer, and this outperformed the 20% off coupon code.
A good rule of thumb when addressing cold traffic is to test different ad strategies for a minimum of three months before expecting to see positive results.