Cyclestore’s paid search optimisation enables newly launching and high-value products to rise in search visibility, boosting the average order value by 20% and increasing revenue by 74%.
Online retailer Cyclestore needed to grow its revenues through new and existing customers, while maintaining a strong profit margin. It embarked on a complete overhaul of its PPC strategy, with the view to increasing the search visibility of high-value products particularly. It was also keen to improve click volumes and conversion rates, and average order values. Through a multi-pronged approach, incorporating a bid adjustment strategy, the segmenting of its AdWords and a new inventory management system, Cyclestore saw its online revenue rise by 74% over an eight-month period. Click volumes increased YOY by 30% and average order value increased by 20%.
Objectives & Aims
Online retailer Cyclestore was keen to optimise its paid search strategy, to help boost revenue while maintaining profit margin. A strict cost per sale target needed to be achieved through its PPC activity.
A secondary objective of the campaign was to improve click volumes and conversion rates, and average order values.
The target audience generally covered all cycling and outdoor enthusiasts, to capture the widest reach. A typical profile was male, aged 25 to 54 years.
Further into the campaign, a new objective emerged to push campaigns live in a further nine countries.
Implementation, Execution & Tactics
To maximise revenue growth, Cyclestore mapped out a PPC strategy that would target both new and returning visitors. First off, it identified products that were high in value and conversion rate, with a plan to increase their search visibility as a top priority. Secondly, it planned a bid adjustment strategy, enabling it to target valuable leads more aggressively.
Cyclestore also optimised its shopping feed data and segmented its Google AdWords shopping campaigns. It implemented a new inventory management system so that new ads and keywords would be created automatically whenever a new product appeared in the shopping centre feed. This meant that newly launching products were being promoted as early as possible, and also helped to increase visibility for high-value items.
The retailer then implemented a retargeting strategy to optimise bids separately for new and returning customers. It also carried out a full refresh of all ad creative and ad extensions to improve performance across the board, and created a regular testing framework for all future campaigns.
In the first eight months of the campaign (October 2015 to June 2016), Cyclestore saw the following results:
- Click volumes increased YOY by 30%.
- Average order value increased by 20%.
- UK revenue increased by 74%.
- The average cost of sale fell from 19% to 13%.
Cyclestore tested its progress via AdWords before rolling out similar campaigns across Bing, meaning it proved its hypothesis before expanding the reach of the campaign.
The campaign has proved so successful it has since been rolled out to 15 countries: Sweden, Germany, Netherlands, Japan, Poland, Italy, Spain, France, Denmark, Ireland, Norway, Austria, Czech Republic, Switzerland and Belgium.
Shortlisted: UK Search Awards, Northern Digital Awards