Case: achieving 1 million UAH profit in skincare cosmetics
About client
Marie Fresh Cosmetics – a Ukrainian manufacturer of natural cosmetics. This is a case where the product is of high quality and, with the right promotion strategy, there is a trend towards increased sales.rnrnThe client came to us with a noticeable disconnect in data transfer from the website to the advertising cabinet, the website needed some improvements, and the advertising was not yielding the desired effect.
How we achieved this result
Throughout our work, we adhered to a clear connection to revenue, advertising expenditure share, and overall return on investment. We set up e-commerce and gained the ability to accurately track conversions, and we also incorporated monitoring of the CRM system into our responsibilities to mitigate errors in analytics. Thanks to metric control and reporting, we understood the real state of affairs and could adjust the results.
Let’s analyze the main performance parameters over the course of 1 month – November 2023. The conversion is represented by Purchase. No other additional conversions were optimized for advertising. Thus, we train the campaign for the correct actions and obtain reliable data on actual sales.
In October, the following indicators were recorded:
- Number of conversions – 640
- Average cost per conversion – 53 UAH
- Conversion rate – 5.72%
- Expenditure: 34 thousand UAH
Several campaigns were running in the cabinet – with maximum effectiveness, dynamic, and brand campaigns. The spike in conversions that we see on the graph is related to the relaunch of the brand campaign.
Overall, these are very good indicators.
But we were confident that it could be better. Especially in the month before Black Friday. Is it possible to launch and train part of the campaigns in a short period? Yes! If approached correctly. Of course, there was a risk of overspending and an increase in cost per conversion, but we planned to cover the expenses by increasing the number of sales.
And we succeeded. We developed a structure in the account that generated revenue of over 1 million UAH!
Indicators for November:
- Number of conversions – 881
- Average cost per conversion – 74 UAH
- Conversion rate – 7.05%
- Expenditure: 65 thousand UAH
Thus, we record an increase in the number of conversions by 137%, and the value of conversions (total revenue) by 235%.
And the advertising costs amounted to only 5.2% of the revenue.
Increase in ROMI compared to the previous month by 2281%
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