Earning an 8X ROI With Home Improvement Google Shopping

home improvement ppc case study

Small to medium-sized home improvement business operators encounter intense competition.

Even if they can persuade potential customers to avoid going to big box stores like Home Depot or Lowe’s, they still have to compete with dozens of other small businesses in their community that sell similar products.

How do smaller businesses compete in that level of playing field? Pay-per-click (PPC) or our Google Ads Managment solutions.

Please keep reading to find out how we used Google Shopping to help an online home improvement company attract more consumers and generate sales with an 8x return on investment.

Background

The client contacted us in March 2020. They have been selling saloon and café doors online for over 40 years and are based in Pittsburgh, Pennsylvania.

The home improvement store capitalized on the power of the internet in its early days. They haad a well-managed website, but they wanted assistance with Google Ads. They attribute 70% of their business to their e-commerce operation. The remaining 30% is from the foot traffic in Pittsburgh.

They wanted to increase income by reaching out to more potential clients. Their specific objective was to achieve a 5x return on investment by keeping ad costs at 20% or less of total income.

The PPC Strategy

Our biggest problem was that the client believed they HAD to be on Google utilizing shopping advertising, search ads, and display ads to compete with the “big boy” competitors like Lowe’s, Home Depot, Wayfair, or Amazon.

The issue was that they did not see ROI while running Google Ads internally. Furthermore, their budget was a fraction of what the megaretailers spent.

In March 2020, our Snap SEO PPC team audited their live campaigns and discovered a solution. We observed that the customer had a high-performing Standard Campaign that was returning a 6X ROI.

ppc auditWe changed this to a Smart Shopping Campaign right away since it allowed for more targeted placements throughout Google Shopping and the Google Display Network.

The next step was to analyze the data from their Standard Shopping Campaign. Again, we worked our way down the list, keeping just the most effective products. Any product that wasn’t getting clicks was eliminated from the new campaign.

Examples of our client's high performing products like bommer hinges or swinging cafe doors.

Another efficient strategy to generate sales was to launch a remarketing campaign. This sort of advertising targets previous visitors who have shown interest in a product but did not purchase it for any reason.

We intended to reach out to as many new and current prospects as we could.

Touchpoints are critical since the client’s Google Analytics data revealed that higher-priced products took weeks to sell vs low-priced things with a significantly smaller commitment.

Take a look at the conversion numbers obtained between 12 and 30 days following an initial touchpoint in the graph below.

This remarketing campaign would serve as an additional point of contract to remind potential clients of the item they were interested in.The client’s Google Analytics show that products that are higher-priced take weeks to close a sale compared to low-price items which are a much lower commitment.

Results

The outcome of this PPC campaign exceeded our expectations. In the end, we outperformed the client’s goal by providing an 8x return on investment.

While our initial audit revealed that the Standard Campaign earned a 6x return, we were able to increase that to more than 8x by focusing on higher-priced products.

We focused on higher priced items and were able to focus on driving a higher ROI for our client.We spent $22,682 on advertising and made $180,642 in sales after moving to a Smart Shopping Campaign.

Metric Pre-Snap Snap Google Ads- Shopping
Ad Spend $19,161.41 $22,983.97
Conversion Value $114,894.54 $184,853.04
ROAS 6X 8.04X

Ad costs accounted for just 12.6% of total income earned instead of the 20% target they established at the outset.

This client’s total income grew by 77.20% ($681,591.75 vs $384,646.68)

We focused on higher priced items and were able to focus on driving a higher ROI for our client.

Here are some more data to back up the campaign’s success:

  • Purchases of unique products have climbed by 54.55%
  • Overall, the average price of each transaction has increased by over 10% (9.47%)
  • Paid search income grew by 81.25% ($85,214.76 to $154,448.79).

Our client was very concerned with outperforming the “big boys” as well. As a result, not only did we have a high ROI, but we also surpassed practically every “big boy” on the market.

How our client's campaign compared to major home improvement retailers like Lowes or Amazon.

We have proven to our client that the right strategy can outperform a larger corporation with a larger budget.

Conclusion

PPC advertising is an efficient technique to increase sales. Regardless of what they sell, e-commerce site owners should set up Google Shopping Campaigns.

While designing these ads appears to be simple, it takes hours of monitoring and modifying to create a campaign. In addition, for beginners, the Google Shopping interface can sometimes be confusing.

Do you want to launch and optimize your PPC advertisements but don’t know where to begin?

Snap SEO is ready to assist you in creating or improving Google Shopping advertising, increasing conversions, and increasing sales!

To get started, schedule a call with one of our digital marketing specialists.

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