Client Success Story - Cosmetics Retailer
A mid-size online hygiene and cosmetics retailer, which has had its products on the pages of Elle, Cosmopolitan, Self and In Style learned how all data is most assuredly not created equal. After using second-party data from our ecommerce co-op, our client saw a tremendous increase in its conversion rate.
Q: When is a lower average order a good thing?
A: When you’re getting 5x more orders than usual.
From July 1-July 31st, 2016
Hivewyre was able to achieve the following results:
20% Conversion Rate
When you can find qualified shoppers who are ready to make purchases right now, it is quite amazing how much bump that gives your conversion rate. Our client’s overall conversion rate was pretty strong by industry standards with a 3.30%. But when you look at the conversion rate we brought to this retailer with our second-party data, there really was no comparison. 19.98%conversion rate in the month of July.
5x More Conversions
With an increase in conversions by over 500% with the new shoppers we were bringing to this site compared to what this site was doing before using Hivewyre, it’s hard to argue with our data and methods.
Revenue Per Visitor vs CPV
With the average revenue per visitor on this site being $2.11 and the cost per visitor (CPV) being $5.11 with the unconverted shoppers Hivewyre brought, on the surface it would appear it was costing the site $3.00 for every new visitor we helped bring to the site...
But let’s dive in a bit deeper:
1051 - new shoppers brought by Hivewyre (NS)
210 - Hivewyre shoppers converted (HSC)
Revenue from shoppers = $2271
Cost of getting new shoppers = $5370
Net gain/loss = -$3153
Avg. Net = -$3.00 (AN)
Avg. order by converted shoppers = $58.08
$12,196 total order
Overall gain: $9,042
Overall gain = (Total order - (3 x HSC)) + ((NS-HSC) x AN)
Lower Average Order - No Problem!
We did see a 10.43% decrease in order value from the shoppers we were bringing to this site vs. the site’s overall average order value ($58.08 vs. $64.84).
But because the shoppers we were getting to the site converted over 5 times more often than the site’s other shoppers, this little dip in average order value did not hurt our campaign’s overall effectiveness.
If you took the number of new visitors our campaign brought to the site (1051) and used the site’s overall conversion rate (3.3%), this would have netted the site 34 new purchases at $64.84 a piece or $2249.
This is almost $10K less than what our campaign was able to generate for this cosmetic company with our second-party data from our ecommerce data co-op.
Other 2016 Client Success Stories: