Increase in Facebook Campaign ROI
How we increased ROI by 50% by understanding our personas
Frederik Boysen is the CEO of e-commerce site Manillo. Here is his story on how he uses analytics to better understand his customers and outsell local retail giants, with the vision of becoming the Amazon of Denmark.
THE BUSINESS PROBLEM
Today’s retail environment is highly competitive. Brick and mortar retail giants like local supermarkets can easily undercut the competition by slashing prices temporarily. This would be a problem for me–my company Manillo is an e-commerce store selling household and office items, which can be found at these stores.
Because competition is so fierce, I needed better data than what’s available in Google Analytics. I needed to see who our VIP customers are and what they’re like so we can go after more of them.
Before Kissmetrics, we had the completely wrong impression of who our buyer persona was. We used to think our valuable buyers were young moms in their mid-thirties with at least two kids.
HOW KISSMETRICS HELPED
In Kissmetrics, we found out our highest value customers are women over 60 years old. They would place large orders and come back to purchase frequently. They were insanely loyal purchasing 3 times/month on average with a high Average Order Value.
I realized the manufacturers I would buy merchandise from needed this data. They found it so valuable, that in exchange, they would place my website on their TV spot campaigns. This would normally cost me more money than I can afford, but they gave it to me in exchange for insights I found in Kissmetrics.
On top of that, every time the commercial runs, I see a huge spike in traffic and purchases on my website. This was all because I could provide valuable insights to them–the revenue we generate from these campaigns is significant to our growth.
Because we have a better understanding of who our ideal buyer is, we can be more strategic in who we target in our ads. We saw a 50% increase in ROI from our Facebook ad campaigns!
And whenever we want to move inventory, we use Engage to guide our website visitors to a flash sale. We saw huge conversions from this and use it every time we need to sell more of an item.
In short, the data we have in Kissmetrics is part of our competitive edge. My company is still small, so once we have more resources, we’ll be able to grow even more and be more competitive.