Case: tool shop – increasing the average check

Кейс: магазин инструментов – повышаем средний чек Cases

Hello everyone. My name is Yana Lyashenko. I am a Google Logist. I am engaged in the delivery of the target audience of the business with the necessary parameters. In today’s video, I will show you one of the team’s case studies. This is not even the second or third month, it seems, of working with this client. I will tell you the nuances, some points, maybe difficulties that you may face. I will talk a little about the general strategy, because I will not show everything, even the settings for profitability or for limiting the price per conversion. Why? Because, well, if you at least steam a little, copy, then you can drink quite a good result.

Complexities of the project

What do we have? We have an online store of tools, hand tools, power tools. What are the difficulties? A very wide product range. There are really a lot of positions, besides, there are a lot of different brands with demand, with a promoted brand, not promoted. For example, there are the same Dewalt or Benetech, or something else like that. We also have a very diverse price range. It is less than 500, from 500 to 1500, more than 5000 UAH, more than 50000 UAH. That is, there are very different categories for the garden, home, gone and gone, for construction. That is, a very large product range.

The next difficulty is the limited daily budget for such a range of products. Well, unfortunately, maybe someone is sorry to hear this, maybe not. But if you really want to rotate the entire product range on a large scale, then you need a little… If you want to grow in conversions, then you need to increase the advertising budget accordingly. We have a limit of only $250 per day. Maybe for someone it is a very large amount, maybe for someone it is an insignificant result, for someone it is directly significant.

Adjustment by the client

The client is always dissatisfied. The client is always dissatisfied not with the speed of growth, not with the amount of growth, etc. I will tell all these nuances, details. Maybe they will be useful to someone. Maybe someone will look at their account from the other side. Maybe something and other nuances will be there, but in these nuances you will notice something that has a very significant effect on the performance and, for example, such mistakes as in the increase of the conversion price. I will tell you why they are. Due to which they are a negative shot. There are positive breakthroughs, for example, in sales. We track conversions here with coltracking, we have Ringostat coltracking here, very clearly tracks all conversions. Plus we have purchase here. Purchase with us is configured through the purchase tag with advanced tracking. Everything is as it should be, according to the instructions. Everything he wants, he asks about Google, there are no complaints here.

Plus, after extorting the client accordingly, they finally achieved a complete overhaul of the strategy. What are we not doing? Just get me the most conversions, the most calls out there, the most sales for a certain price per conversion. Still, we have at least an approximate reference point. Which? We must advertise the check and other things.

Since April 27, our strategy has been completely revised. We will focus as much as possible on goods more expensive than UAH 4,000. I will even show whether it was possible to do it, or whether the team did not manage to do it, so as not to completely fail the advertising account in terms of conversions. Because here you can see these shots, red in the things, they are so big, so substantial. So that the number of conversions does not drop significantly. If you look here, she didn’t really beg, she fell. For example, take this small period.

The problem is limited budget

Yes, the next difficulty is that we have a limited budget of $250 and not enough regular replenishment of the advertising account. By the way, those who say that if you don’t top up your advertising account there for a day or two, there will be trouble, the terrible performance will be completely broken. No, it will not break completely. The only thing is that when we have a very large product range and, accordingly, a structure has been built for this product range, for this budget plus or minus some kind of structure and if you have a small part of the unspent funds on the balance and you do not have time to replenish it, then it may simply be that’s the story. And then you top up. The following day, the story will be like this.

That is, $20, three conversions, then 18. Why do such overshoots happen? Not only because you replenished the budget in time. That’s not why. And because I emphasize once again – there were a lot of advertising campaigns.

The specifics of having a large number of advertising campaigns

Why are there so many advertising campaigns? In order to minimally scroll through at least some product segments. Because one ad campaign, or two ad campaigns, you just won’t go very far. Well, why don’t you go? It’s just that not the entire product range will be called up, just displayed even. But this is also one of the difficulties when there is not enough… For example, you replenish your advertising account irregularly. It does not break the global performance and you simply do not have time to show yourself effectively.

Why? Because, in this case, Google will accept randomly enough for this balance whom it prefers in terms of impressions and, accordingly, clicks and costs. That is, if we had a conditional $20 left over there, then he saved up for three conversions. Because there is a very large product range, each one must be shown there, each one will generate a certain click there. As we discussed with the client today at the consultation, they think that in large online stores the selling price is really, really, really expensive, and it can be expensive only for one simple reason, that you want to scroll through a very large product range at the same time.

For example, I don’t know, we rotate 1000 products. And all 1000 products, for example, get at least one click. And let this one click be UAH 1, conditionally. And it turns out that out of these thousand, well, two or three items were sold there. Well, let there be two product positions. It turns out that the price per conversion is what? Quite a decent price for the conversion. But in fact, if we delve into the commodity analysis, it turns out that these two sales cost UAH 1 each. Because we have UAH 1, there was one click. That is, the main expensive price per conversion is made by all the rest of other products that were simply made with one click.

Not all products can convert very quickly. It all depends on the user, at what stage of the conversion, maybe he just won’t like us. Maybe there are some options, shopping is not suitable. Perhaps he was simply distracted from choosing a process at the moment. Maybe he was sitting at work or somewhere on the road, he just got distracted, closed these tabs and then started Googling again.

This is how the expendable part is formed, please. Therefore, if you want to grow systematically, it is still desirable that you either decide on a fairly narrow product range for which you have enough daily budget, so that there is no such story. There is none, and then everything is there. Yes, everything is great, everything is fine or like, for example, here you see a price of 2.98 per conversion, 28 of these conversions are conditional. And so that you can continue to grow.

Because if you want, I want everything, everything to the maximum, then there can be something mediocre. Let’s be honest – most businesses come with a request, I want the maximum sales for the minimum that is possible and it doesn’t matter that we spin it. The client has his own nuances here.

We had an assortment of goods here, somewhere from 500 hryvnias, an average check. Well, conditionally, let it be from UAH 700. up to 1000 hryvnias somewhere around Of course, they gave maximum conversions. These are phone calls and purchase items. But if we take it from the point of view of efficiency, if we are talking about something more stable, then we need to talk about the same change of strategy so that we have a complete picture of what we want. So that we can spend more, accordingly, we will receive higher profitability. Because in this case profitability is not the most important KPI for us.

If we look again, this is when we had the biggest expenses. By the way, the biggest expenses we had here were because we had a super expensive check here. Our profitability was quite high.

Analysis of the results of the strategy change

So let’s go back here. For example, let’s say 14 days, let’s equalize the days to 14. We started this strategy restructuring on April 27. Let’s compare it and see if we managed to increase it. Where is our value per conversion? Value per conversion, well, conventionally, this is an average check. Here we have everything converted into dollars and here is the average check accordingly. After that, what was done?

I think that we will strengthen it a little, strengthen it and add some more things so that this graph, which we saw in the previous picture, is more or less stable.

Advertising campaign structure restructuring

So what about the structure? I will tell you some nuances of building the structures of such advertising accounts. Of course, I won’t show all the settings. You need to understand that from the calculated your KPIs, the final targets, an important nuance will be further in the construction of the structure, because we have a slightly broken structure here. That is, we have generalized it so that we can comfortably manage a budget of 250 dollars. I will even show how it will look now if I take even enabled campaigns. Our schedule here will be like this.

You see, the build-up and conversion of things and our traffic is growing. This is already a reworked structure, a reinforced reworked structure. Well, some of these advertising campaigns have remained. Well, here we can see that it has begun, this structure has begun to be reworked completely globally.

What you need to understand to manage a wide assortment

What should be considered in this niche in order to understand how to effectively manage such a wide product range? First, you should understand that if you have a very wide range of products, all of which differ in price, then you should know 100% not to sculpt this entire price range into one campaign. Because some of them will work more, some less. That is, you need to think about it.

In addition, it is necessary for each price range to develop the correct technical arrangement based on the combination of budget plus profitability. First, so that they do not compete with each other – some kind of power tool can sit both in a smaller check and in a higher check. Then you also need to be guided by this and correctly prioritize them in the displays so that this scaling is more controlled by you.

The next thing is that you should understand that if you have something seasonal, then it is desirable to promptly transfer this seasonality to separate advertising campaigns, configure and scroll them separately.

The next thing you need to remember is that you will have two strategies to work with and target cost per conversion and ROI. Profitability will come to you more easily at more expensive price ranges. On the cheaper ones, perhaps the most optimal option for you is the setting for the target price per conversion. These strategies can work in parallel. The only thing is that you do not cross the same goods between them.

The next thing is to try to see if you have any promoted brands in the ad account that you can spin individually because there is demand for them. These individual brands may make sense, if your daily advertising budget allows, to display in individual advertising campaigns. Why? Because, if there is a demand for them, your task is only to show them promptly.

And the main thing that you should remember in these advertising accounts is that you need to correlate your spending capabilities with the volume of goods that you want to advertise. Because if you want to scroll through hundreds of thousands of product items there, but at the same time you will have a small product range, it will be psychologically easier for the specialist and the advertising account, and for you to see a great result, if you understand what you are focusing on.

That is, scrolling through all 100,000 products at the same time is very expensive. Plus, if someone scrolls through all 100,000 products, for example, from effective campaigns, it simply won’t add to the budget. Because your task is to bring it to the shows. This, in principle, is such a basic set of what you need to remember.

What tasks are planned with the client

From the planned tasks that we have now with the client. The first thing is to find out what conversion price he really wants, because we calculated it for him, that is, conversion prices. And it also needs to reduce this conversion price.

Secondly, it is to determine, perhaps, the types of product groups or the types of price ranges that will be driven only by profitability, for example, as we see here. There is a certain price range of goods.

We have the same 30 conversions here, we have an ROI of 8.12, unlike this previous campaign, which seems to have more conversions, but lower ROI. But here, the number of phone calls simply exceeds the number of purchases. I will even make a layout of these two campaigns for you, so that you can roughly make sure that this is indeed the case.

Here, for example, Ringostat call with us and here is a purchase of 25.54. Well, for example, half and half. Yes, this is something we count in dollars, and here, for example, there were not so many purchases. There were a lot of calls here, but the value here is pretty high for these purchases. Remember that almost everything is tracked here in dollars. Dollars, by the way, are not a panacea. Don’t think that they are easier to advertise on. Google thinks in categories of these digital steps, so even in hryvnia it would be a little cheaper for the client. But we already have what we have.

Conclusions and recommendations

To summarize what we have in this account or conclusions from this case. The first thing is to clearly understand and correlate your financial possibilities for replenishment, the regularity of replenishment of the advertising account in relation to the product range that you will advertise. The approach on the 100,000-thousand product range is at most at the minimum cost, without specifying what the minimum cost is or, for example, the profitability at which it should be achieved. This is a bit of a vague strategy.

Secondly, try to replenish your account regularly. It’s not that the nuance is exactly that the performance will break. No. It’s just that he won’t screw up the necessary part of the goods. Because the performance, it is completely flexible, adaptive, it scrolled through those products that were considered conversionable at that time. But simply following the chain of the attribution model did not reach this point. Not good, not bad. The next day would be super great. On the second, third – even better. Do not think that you did not replenish the account and everything is completely broken. No. This is a slightly different technical component, which I explained before.

Next, for each price range or, for example, not a price range, but a margin range, try to determine a personal combination of budget and profitability. So that it doesn’t happen that, for example, you display some percentage of profitability and it is identical for goods for 700 hryvnias. and for goods for UAH 50,000. This cannot be allowed. Well, it is better to prioritize them.

The next thing is that if you want an increase in the average check in sales – it can be organized here without any problems, even without a significant drop in conversion. Well, I wouldn’t say that we haven’t changed significantly in terms of conversions, but we didn’t ask for, for example, 80 or how many percent. That is, everything is possible, the main thing is to set the KPI incorrectly. And I believe that this block is just a rework for a more expensive price range, there is the determination of the correct target KPIs, it depends more on the proactivity of the team, which, after all, gathered this information directly from the client. Because sometimes the client has a lot of other problems that he wants to solve and he doesn’t have the fuel to think (!!!) they just worry about such important nuances as in this case.

Яна Ляшенко
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