Stone Refurb: 269% increase in Revenue by knowing how to scale profitably
ROAS targets had limited the scalability of the campaign
Stone Refurb specialise in Refurbished Laptops and Desktops for both personal & business use that otherwise would end up in landfills. Their mission is to reduce the impact of e-waste by extending the lifecycle of IT hardware, whilst providing consumers with access to high quality & affordable devices.
PPC was the main revenue driving channel for Stone Refurb, but performance had hit a ceiling. The previous agency were unable to meet the 3:1 ROAS target without reducing media spend and this reduced the ability to scale the campaign in line with business targets.
Stone Refurb customers are more price conscious. Parents with children of school age who don't have the budget to buy new, students with low disposable incomes and new business owners where cashflow is a concern. These audiences still want the best brands & the best technology but at an affordable price, as well as a robust aftercare service and confidence in the quality of the product.
Measure the value of the user
The Laptops & Desktops category has a high total addressable market, but keyword research identified niche keyword categories that better aligned with a refurbished product. We focussed on these and left out the “generic” terms as competition would be high and conversion rate low.
With Black Friday approaching, we knew the purchase intent of users would increase. To respond we segmented campaigns with custom labels for shopping and a granular search structure centred around the following key areas:
- High Stock - The general stock shortage in the market gave us a distinct competitive advantage.
- Gaming PC’s - Capitalising on the boost in search volume for products that that lend well to Christmas gifting.
- 3rd Party terms - Focusing on key reseller brands e.g. Apple, Dell etc.
Knowing conversion rate would increase around Black Friday, we reduced our ROAS targets to between 200% and 225% to give Google more freedom to spend more, find more converting users and ultimately generate more revenue.
With channel level ROAS limiting scalability, campaign data showed PPC played a large assistive role on purchases in other channels. We wanted to leverage this and introduced the Marketing Efficiency Ratio metric to measure campaign performance at an overall level rather than at a channel level. This allowed us to increase media spend and target higher up the funnel to drive more consumers to the site that would normally be missed due to budget limitations and used a multi-channel approach to be visible throughout a consumers research journey.
The Results
ROAS increase from 2.5 to 3.1
269% increase in Revenue
382% increase in Value of Assisted Conversions
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Our Work
We’ve worked with a variety of companies to produce outstanding results. From internationally recognised brands to small family-owned businesses, we’ve gotten to know our clients inside out to produce perfect projects and create captivating campaigns that truly express their message and values.
