Fig & Bloom is an Australian floral arrangement company. They specialize in high-end, contemporary floral design and deliver across Melbourne and Sydney. Fig & Bloom is a five star florist with thousands of loyal customers. Their mission is to make ordering flowers online easy and fun. They send a photo of the finished flower arrangement, so a customer can picture exactly what their loved one will see when they open their door!
They came to us looking to develop a playbook for increasing Return on Ad Spend (ROAS) within existing markets, thereby increasing profits that can be reinvested in expansion into new regions.
Challenges
Fig & Bloom operates in a competitive, seasonal market. They significantly benefit from economies of scale, as it’s much more cost effective to ship out 100 orders than it is to ship out 10. Therefore, they need to take big risks to aggressively capture as much market share as possible, especially during peak seasons.
The shopping campaigns had traditionally been unprofitable, and the search campaigns were spread too thin. We needed to help focus on promoting the products that would yield the highest average order value, while increasing our flexibility to capture profitable business throughout the different regions.
Strategy
Feed optimization and campaign restructure helped dramatically increase the ROAS from the shopping campaigns almost immediately. We ensured that we were only featuring products that were most likely to appeal to our core audience.
This would also train Google’s smart bidding algorithms to better understand our core audience demographic and what specific signals related to their search correlated with a higher conversion rate. Training the algorithm to make more confident decisions regarding our best customers would be essential in profitably entering new markets.
We then initiated a consolidation strategy within the search campaigns to increase freedom and flexibility for smart bidding. The previous management had segmented the search campaigns based on slight differences in keywords. Long-tail keywords (keywords that included the name of a city or a specific type of bouquet, for example) received a larger percentage of the budget than did broader keywords such as [flower delivery service].
This is a somewhat outdated strategy - Ultimately, Fig & Bloom does not care if a person searches for flower delivery service or flower delivery service Melbourne - All that matters is if that user converts into a customer under a profitable ROAS.
Assumptions about a given keyword’s buyer-intent, and the decision to structure budget and bids around this assumption is one of the largest pitfalls that we see when we inherit accounts. Instead, proper implementation of a smart bidding strategy will allow an intelligent algorithm to make more accurate predictions about buyer intent, regardless of the user’s search query.
A consolidated account structure allowed more freedom for the smart bidding algorithms to profitably capture the low hanging fruit, and aggressively go after the traffic that was likely to convert at an higher-than-average order value.
Results
- 290% Increase in Shopping ROAS
- 27% Increase in Search ROAS
- 25% Increase in Shopping Conversion Rate
- 102% Increase in Account-Wide Conversions
