In early 2024, an online store specializing in the sale and installation of automatic gates faced several significant challenges in a rapidly evolving and competitive market. The store had been operational for a few years, providing high-quality automatic gates and related installation services. However, despite the consistent demand for home automation and security solutions, the company was struggling to gain a strong foothold in its niche. The store’s sales growth had plateaued, and the customer acquisition cost (CAC) was steadily rising, signaling inefficiencies in the marketing funnel.
One of the critical issues was the store's heavy reliance on traditional forms of digital marketing, such as basic pay-per-click (PPC) advertising, without a cohesive strategy that integrated all aspects of marketing. Their Google Ads campaigns were underperforming, with an average click-through rate (CTR) of just 2.1%, well below the industry standard of 3.5% for similar e-commerce platforms. The conversion rate on their website hovered around 0.8%, leading to high cart abandonment rates, which further compounded the problem. Additionally, the store's customer retention rate was a dismal 18%, which was far below the industry benchmark of 30%.
The company also faced challenges in engaging with its customer base. Despite having a CRM system in place, it was not being utilized effectively to nurture leads or retain existing customers. The store’s email open rates were languishing at 12%, far below the 20% average for the retail sector, and click-through rates on these emails were even worse, at just 1.5%. Social media channels were underutilized, with minimal engagement and almost non-existent organic reach. The company’s social media accounts had a combined following of less than 3,000, with monthly engagement rates below 0.5%.
To address these challenges and revitalize growth, the store decided to engage in an integrated marketing strategy, aiming to not only increase immediate sales but also build long-term customer loyalty and enhance brand visibility. The goal was to drive significant improvements in key performance metrics across the board, including traffic, conversion rates, customer retention, and overall revenue.