+424
Million revenue
+412%
Growth in traffic
+124%
LTV
DATE:
January 17, 2021
MARTECH IN ACTION:
Klaviyo, Alumio, Google Analytics, Google Ads, Facebook Ads, Gain, RankMath Pro, Litmus
IN A NUTSHELL:
Endless testing and meticulous optimization are the keys to online marketing success. However, there are times when a carefully planned strategy or consistently applied tactics can provide stunning results in record speed. You’ll discover a case study on this page on e-commerce marketing that follows a similar plot.
01. Through the client’s eyes
01. Execution
7digits had worked with Convoy before, back in 2021, when we were mostly involved in supporting their back-end systems. Over time, we were able to delve deeper and deeper into the world of online marketing, and after overcoming some technological hurdles, we kicked off the new year by revamping Convoy’s performance marketing approach and performing some fundamental conversion optimization.
Convoy’s approach has always been one of constructive collaboration and Western openness, but also a strong performance drive – a more than ideal attitude for an agency, as was the case with Convoy’s almost unique market position.
The chance to increase PPC spending was quickly shown by Google Ads campaigns generating a 9-10x ROAS at the beginning of the year. After the campaigns were running well above the expected return even with the higher spending, adding Facebook as a paid traffic generation channel was a no-brainer.
While the client had previously solely considered Google campaigns, the rise in sponsored traffic has allowed for increased experimentation within Facebook’s advertising infrastructure, ultimately leading to better month-over-month results.
02. Breakthrough
The opportunity to fully exploit the potential of both advertising platforms was increasing as both sales and data grew: as Facebook’s traffic grew, not only could dozens of ad creatives be tested, but so could many lookalike audiences. Similarly, PPC managers could optimize their campaigns more quickly and precisely thanks to the large amount of data available to them.
Google’s system was also able to interpret more and more data, so the performance of Shopping campaigns improved month by month.
Revenue from Google Ads increased by 346% and revenue attributable to Facebook ads increased by 603%…
…and almost all other channels saw an increase in conversions and revenue numbers as well.
Much stronger paid traffic slightly improved the number of organic visitors, while direct traffic also saw a brutal boost. Among the top conversion routes, the 2xDirect attribution model came in 4th place and the 3xDirect attribution model in 7th place – tellingly, 50,000 new visitors came to the site from direct sources alone.
03. The Most Important Decision
After months of steadily increasing sales (except during the slow season), we launched marketing automation in the autumn with Klaviyo, one of the MarTech stars of e-commerce—although not without some hiccups…
When dealing with high traffic and multiple systems packed with custom solutions, mishaps are inevitable. Even with Klaviyo’s initial personalized emails, issues arose which 7digits sought to resolve, maintaining nearly 24/7 availability. This was due to the fact that marketing automation provided an incredible return on investment almost immediately. We understood that the opportunity to swiftly and efficiently increase LTV would persist only so long as these issues did not threaten Convoy’s brand value.
After fixing the initial automation bugs, we launched a highly personalized six-part email campaign tailored to customer needs by the end of the year. This campaign drove sales to exceed half a billion—a result neither the client nor the agency had dared to hope for, even as late as early November 2021.
04. Conclusion: Go Big or Go Home!
Convoy’s incredible growth is not the result of a single miracle MarTech tool, technique, growth hack, or channel, but of numbers. When you unleash substantial advertising budgets on a well-functioning e-commerce technology base, managed by professional campaign managers who continually optimize the advertisements, growth will happen. And you are bound to end up with a story that’s just begging to be turned into an e-commerce case study…
The increase in visitor numbers also provides the opportunity for conversion optimization, which without such volume would not be possible, or would only be conceivable over a very long period of time. When there are many visitors, a new email automation layer proportionally produces more, while costing the same or – even considering the increasing license costs with the number of managed email addresses – nearly the same.
The motto of the e-commerce case study we created about Convoy could be “technology, data, and optimization” – because data-driven marketing is just a method, not a miracle solution. No matter how much data and expertise an agency has, their combination is only as valuable as what decision-makers understand from it. At Convoy, those preparing the decisions saw the opportunity, and the decision-makers believed in the numbers – that’s all it takes for an e-commerce case study recounting a fivefold growth to be born in just over a year. We would gladly say it’s 7digits magic – but it’s not. It’s a lot of work and decisions backed by data – perhaps that’s why it’s so difficult for many, because it sounds too trivial…
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