Luxury Home Goods Company Case Study Success
The luxury home furniture and home decor company named Alchemy Fine Home engaged the digital marketing and CRO services of Imaginate Media in March of this year. After an in-depth review of keywords, marketing strategies across Google, Facebook, email, and SMS marketing with Postscript and personalization with Nosto, Imaginate Media has increased the revenue by 349.56% since March with an average growth of 25% growth Month over Month.
A good conversion rate for high-end furniture brands is 0.75% and Imaginate Media has almost doubled the conversion rate from 0.52% to 1% despite a drop in Average Order Value of 40% as Consumers chose smaller purchases.
Challenges for small business in COVID-19 and what solutions Imaginate Media found
With COVID-19, there were several challenges that we faced. There was surge pricing for shipping costs from all vendors. Imaginate Media did an in-depth analysis of the orders below and above the shipping threshold as well as a competitor review. We recommended the brand to raise the threshold by $50 in order to recoup 25% of shipping costs. Onsite messaging was immediately added to the website to call out potential delays in shipping and contactless delivery for specific states as they were affected. This led to an immediate decrease in the influx of calls from Consumers who were asking about the status of their order. We monitored the Checkout Funnel closely to see if visitors balked at the new increased free shipping threshold through analyzing events in Google Analytics and watching hundreds of recordings of User sessions. Thankfully, the new Visitors didn’t have an issue and Returning Visitors dropped off by less than 1% from the prior threshold.
Consumer choices and behavior changed with COVID-19
The focus on products shifted instantly to pivot to the home office for different sized rooms and styles, how to create a zen meditation room and bakeware. Bakeware immediately became 25% of sales and would have been higher if it wasn’t for a lack of inventory. Outdoor dining was successful but outdoor furniture was not as successful as these were not regarded as necessities. Larger purchases were reserved for inside of the home. As Consumers were spending more time inside, dining, sofas, and coffee tables were quickly highly searched terms. Luxury outdoor pots were not as successful as luxury indoor vases.
Prior to Imaginate Media, SMS marketing was not very successful outside of automation such as the abandoned cart flow. We did an analysis of times and days for when Consumers were on their mobile devices and ran different campaigns on SMS versus Email. Having exclusive early access or SMS only campaigns, the results were dramatic.
1700% increase in the number of orders from SMS marketing
15,440% revenue increase in SMS Marketing
Despite the list of SMS subscribers being 12% of the email list, the revenue from SMS automation was 50% of Email automation revenue.
The Google Shopping bot caused a disruption in abandoned carts and the platform Shopify was no longer able to track the true conversion rate started in March of this year. In a matter of just two days, Google’s bot would create 81 different fake profiles. This would trigger the abandoned cart sessions in the email flows to non-relevant Users. Imaginate Media was able to set up the Google Analytics to filter out the bot traffic so that we could understand the true website KPIs. As Shopify launched Pay, we were able to follow along any changes to referral traffic to exclude them as non-relevant referrals. Imaginate Media also suppressed every bot in the email service provider so that the brand was not paying for fake profiles.
Why is properly setting up Google Analytics important?
A proper set up of Google Analytics will help you understand where your visitors are coming in from, what they are looking for, how they are typing in their searches, how they convert as well as where are they dropping off. You can get an in-depth analysis of where to spend your marketing dollars and how to enhance your website.
Get the most of your analytics! Contact us for a free review of your Google Analytics to see if your account is set up correctly.
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