FROM A LOSS OF -£11 TO A PROFIT OF £29 PER NEW A NEW CUSTOMER VIA PAID SEARCH - ECOMMERCE
OBJECTIVE
Our objective was to increase efficiencies (profit) via Paid Search in order to scale investment and new customer acquisition volumes via this channel.
SOLUTION
We carried out an in-depth analysis to identify, revenue and profit per new customer, between month 1 and month 12, allowing us to establish lifetime value (in terms of profit) from the first transaction onwards. This also highlighted a number of inefficiencies within the Paid Search activity, which when dealt with, we were able to re-invest the savings into more lucrative segments (locations, devices, keywords and even product categories)
RESULTS
This approach resulted in the brand going from generating a loss of -£11.66 per new customer acquired (which eventually grew to a profit of £17.18 due to repeat transactions and lifetime value), to a profit of £29.51 during month 1, eventually growing to a profit of £54.04 over the 12 month period. This also allowed us to increase new customer volumes X5 due to increased investment and return from the channel.
