May has seen a drive to lower costs, the main target being google adwords. This has been due to the lull in sales that happened in march and april that has affected our profitability. Now that most of our energies are not being spent on fixing bugs with our new e-business system, time can actually be spent on marketing and providing better customer service.
During this drive, I have re-modeled most of my ad-groups to make them more specific, which has seen conversion rates increase, making each click more valuable and thus allowing the max cost per click to be raised. This in turn means our ads feature higher up the listings and get more clicks, which, going full circle are converting at a higher rate.
This has seen the cost of adwords dropping dramatically from a stagering 25/20% of revenue down to, in some cases, an awesome 95% (my target was 15%!). Our new fulfilment system and its implementation of it has definitely taken our eye of the ball…
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