How to Switch from B2B to B2C Ecommerce… And Drive Sales +3,000%
With Spaceboost’s technology, an ecommerce Home Decor client used a PPC automation strategy to increase their ROI by 177% and boost conversions by over 3,000%, expanding from a B2B to a leading B2C ecommerce player across several markets in an ultra-competitive vertical. This is a classic B2B to B2C ecommerce case study, with B2C sales optimization to increase their ecommerce sales!
How the hell did they do that? Spaceboost’s technology allows businesses to go from manually managing their online advertising strategy, to linking their entire catalogue to intelligently expand into new markets with PPC Automation, in a precise, efficient, and intelligent way. Here’s a breakdown of how they did it.
B2B and B2C Ecommerce
The client was a leading ecommerce advertiser in the home decoration vertical.
They had a high-quality product, with a great price – quality relationship and they were performing well as a traditional B2B supplier, but they saw an opportunity with good margins and high possibility to scale: they could expand their business to sell directly to the final customer. To do this, they needed to increase visibility – they wanted to grow and become a major player in EMEA – but they needed to keep control of their ROI while they did it.
Before using Spaceboost, they were working in just one market; their advertising campaign was manually managed by just one person, and there was no way they could effectively scale their campaigns, or expand into the markets they wanted their products to reach.
“Without Spaceboost’s technology it would have been impossible to grow as quickly as they did. As it was, they arrived into the markets they wanted to operate in – competitive markets in which any false step can leave you out of the game – at the ideal moment.”
– Pablo Molins, Head of Operations, Spaceboost
B2C Sales Optimization
Increase visibility, maintain profitability.
From the very beginning, the strategy was to identify profitable markets and expand into them. Instead of using just the standard configuration of Google Shopping, they would use PPC Automation to display their whole catalogue across three channels – Google Shopping, Search, and Display.
Their whole catalogue would split into separate campaigns with different goals and performance metrics, allowing for a new model of optimization for their entire advertising strategy: creating campaigns much more quickly and using the Spaceboost optimizer to keep control of their spend and manage their investment much more efficiently.
- Connect their product catalogue: creating dynamic feeds, they structured their data in a much more technical way. Once linked to their accounts, they could decide what priority to give to ads for each product in real-time, react to stock levels and seasonal events, and effectively spread into more markets.
- Define the ideal CPA/ROI objectives: using their sales margins, product information, and Spaceboost’s algorithms, they created an extremely segmented strategy that permitted them to define the ideal CPA for every product in the catalogue and establish which audiences were profitable and which were going to be more difficult to enter.
- Create a new campaign architecture: using the Spaceboost structure generator to create campaigns with thousands of optimized ads, all within the precise budget they had defined. Instead of targeting generic audiences, they were able to reach the long tail. That means much less competitive audiences, with higher conversion rates, and lower prices.
“For an ecommerce, it’s essential that your digital advertising strategy is very closely linked to your business metrics. You need to be able to say where and why you’re spending each and every cent of your investment.”
– Pablo Molins, Head of Operations
How to Increase PPC Results for B2C ecommerce
What they gained was the ability to reach the entire range of potential audiences for a specific vertical – in this case high quality furniture – by using PPC Automation technology to maximise the effectiveness of their budget to reach many more markets. The results speak for themselves.
Thanks to an outstanding strategy of automation and optimization using Spaceboost technology they were able to advertise all of their catalogue across Google Search, Shopping, and Display.
And, using the newly created massive campaign structure, the client was also able to react to key events in their vertical – like Black Friday – in a much more agile way, and with spectacular results.
They switched from a traditional B2B business to generating most of their revenue through an online B2C model; successfully establishing themselves in competitive new markets and increasing their ROI ratio by 177%.