When thinking about growing your business through Google Ads Campaigns, the first thing that probably comes to mind is increasing budgets or attracting new customers. Well, let us show you how you can grow by taking other metrics into consideration.
So, you’re probably asking yourself: How do I Scale an E-comm campaign? The obvious answer is: by reaching new customers, and getting new and more acquisitions. We won’t deny that this is a way to foster growth, but in our opinion, it definitely isn’t the only avenue. Moreover, it’s not always the optimal growth strategy.
Having said so, here’s an idea (just one of a million) for how to scale if you have a good, optimized Pmax campaign running. Analyze search terms that are converting for Pmax and use them to build a Search campaign. You will take traffic away from Pmax with the ‘Standard’ Search campaign and will force Pmax to look for new converting terms. This might sound like stealing from your own campaigns but we would put it in other terms: You are making Pmax uncomfortable, you will be forcing it to discover new converting audiences that wouldn’t have been reached if you had not taken them from it. That way, you will be scaling campaigns and reaching new audiences while still getting results from your winning search terms.
Ecommerce Growth Strategy for Google Ads Campaigns
As we mentioned before, reaching new customers is not the only way to grow and there are a lot of metrics that can be super helpful to analyze and that will guide you to make the right decisions for your business. Let’s dive in there now:
1) Increase your revenue
You don’t always need to sell more, or find new customers to make your business grow. Have you ever checked your average order value? The AOV basically means the dollar amount, on average, that your customer spends on each order. So if we have, on average, 10 monthly sales of $5.00 dollars each, we can discover a way to get those 10 customers to spend $8.00 instead. So, with the exact same amount of conversions, we’ll be getting $800, instead of $500. How does that sound? Awesome, of course. Now how do we do it?
Here are some strategies:
Add a pop up in your E-comm Website, that will appear once your customer is about to start the check out process, but after they have decided what to purchase. So, If the user has added, for example, a pair of trousers you may show them how to build a full outfit for that item, by suggesting adding a shirt or a pair of shoes. You can claim: “Other people who bought these trousers also purchased these…” or, “Complete your outfit with this Jacket”.
In some cases, businesses offer free shipping for orders of a certain amount. If your customer is leaving before reaching that value, it is a good idea to offer an item that would get their total into the free shipping range, which would increase your AOV at the same time.
2) Increase purchase frequency
Knowing your customers is vital to making decisions that will have a positive impact on your business. A business which sells swimwear knows that most of their customers buy at the beginning of summer season but then, from middle summer and until fall, sales start decreasing. So, this business should decide to implement a different way of presenting new collections: Instead of a big launch at the beginning of the season, they would launch smaller selections throughout summer, pushing customers to buy more frequently. This is only one example from a multitude of different strategies that can be implemented in order to increase purchase frequency. The right strategy for you will vary depending and on the kind of business that you’re running.
The value of increasing purchase frequency lies in its effect on sales, increasing them without the need to acquire new customers.
3) Build strong relationships
Having said that knowing your customers is vital to your business, now we will discuss building your relationship with them. Typically, how strong is your relationship with customers? And moreover, how long does it last? We are talking about customers’ lifespan, a metric that refers to the average time your customers spend buying your brand until they stop. Knowing this metric, would help you implement win-back strategies for audiences that are reaching that period, building loyalty between them and your brand.
Customers love feeling unique due to the brands they consume. Building customer loyalty is not always part of business strategy, but it is a powerful tool for brands and can be useful when you need to make your business grow.
Customer Lifetime Value
If you know your Average order Value, your Average Purchase Frequency and your Customer Lifespan, you may get your Customer Lifetime Value (CLV) = AOV x APF x ACL.
And why is this important? Because Google and Meta can’t help you understand this revenue, as they only show data from the first purchase value.
The lifetime value will help you get to the realistic revenue that is coming from your campaigns if you divide it by your Customer Acquisition Cost. So, LTV:CAC ratio = “lifetime ROAS”. Your lifetime ROAS will help you understand if it is time to grow (5 points ROAS or more) or if you still need to put in some effort on the previous steps.
Keep Your Business Healthy
One last piece of advice. Keep your business healthy. Analyzing the above metrics will help you understand when it is time to scale campaigns.We do not suggest pushing too hard when expanding, as it can negatively impact your business.
We invite you to look closely at your business, and not to miss any step on the path of growth. While growing a business has a lot to do with strategy, it also takes patience, so keep it healthy and make intelligent decisions when it comes to scaling.
