Client Success Story - Consumer Electronics Retailer
When you have a well-known consumer electronics chain with over 200 stores in nearly half of the states in the U.S. and one that has also been in business for over 60 years, the challenge that is laid out before a programmatic company is not only how to increase new traffic to a site with already over 180K MUVs (monthly unique visitors), but how to also get a higher percentage of new shoppers to pull the trigger on higher priced items? The answer - Hivewyre’s ecommerce data co-op.
Q: Why wouldn’t you worry about lower average order values?
A: When you’re getting 90x more orders than usual.
From July 1-July 31st, 2016
Hivewyre was able to achieve the following results:
6.52% Conversion Rate
Finding qualified shoppers is what we are best known for here at Hivewyre. And when you’re dealing with higher priced items (like our client sells) people usually don’t make these types of pur-chases hastily. This is when it’s even more important to bring shoppers who have already been shopping online at similar sites and are more inclined to place an online order sooner. Our client’s conversion rate was a paltry .07%, but the new shoppers we brought to their site converted at a very respect-able 6.52% rate.
90x More Conversions
With an increase in conversions by over 9000% with the new shoppers we were bringing to this site compared to what our client was converting before using Hivewyre, it’s hard to argue with our data and methodology.
Revenue Per Visitor vs CPV
The average revenue per visitor on this site was $3.92 and the cost per visitor (CPV) was $2.34. Which means our campaigns were very cost effective for our client, because each new shopper we brought to their site was a net gain of $1.58.
Let’s find out what else went well:
6486 - new shoppers brought by Hivewyre (NS)
423 - Hivewyre shoppers converted (HSC)
Revenue from shoppers = $25,425
Cost of getting new shoppers = $15,177
Net gain/loss = $10,248
Avg. Net = $1.58 (AN)
Avg. order by converted shoppers = $575.35
$243,373 total order
Overall gain: $252,953
Overall gain = (Total order + ((NS-HSC) x AN)
Lower Average Order - No Problem!
We did see a 2.13% decrease in order value from the shoppers we were bringing to this site vs. the site’s overall average order value ($575.35 vs. $588.96).
But because the shoppers we were getting to the site converted over 90 times more often than the site’s other shoppers, this little dip in average order value did not hurt our campaign’s overall effectiveness.
Taking the number of new visitors our campaign brought to the site (6486) and substituting the site’s overall conversion rate (.07%), one would net only 5 new purchases at $588.96 each or $2945.
This is over $240K less than what our campaign was able to generate for this consumer electronic company with the second-party data from our ecommerce co-op.
Other 2016 Client Success Stories: