How to rocket food delivery online sales in 6 months. Growth by 250%
About the company: Pizza LuLu is one of the largest network of pizzerias which has been investing in its pizza rolling and baking skills for more than 25 years. Started out in 1993 or 1994 when was returned to Latvia from Canada with the idea of “real American pizzas”: big, juicy, delicious and a little crazy. Over these years, Pizza LuLu has perfected its baking skills and flavour nuances to make “real pizzas”, so today they can honestly say that they are dictating pizza trends in Latvia.
Analysed period: 2017 –2020
2017 – e-commerce setup, KPI`s setup, e-commerce sales significant improvement, detailed analysis of the channels (online, offline: by phone, pizzerias) & deep analysis of each product and bundles sales on a monthly base.
2018-2020 – Increase internet sales by at least 3 times (Revenue, EUR, minimise CPA, ROAS); promote brand recognition in the e-commerce environment. Continue increasing sales in the e-commerce environment by offering new products on the market.
2018-2019 – additional SEO improvements.
Detailed analysis on a monthly base (presenting to the Board):
Installation of e-commerce opened the following opportunities:
Number of purchases
Revenue EUR from Paid Search & Display & Organic Search
CPO (Cost per Order) changes
Advertising automation. Several advertising automation solutions have been tested: Target ROAS, maximise ROAS, Target CPA. Conclusion – all automation strategies need to be tested and their results need to be analysed. The ROAS strategy recommended by Google does not always provide the best sales result.
Account structure. A correct account structure results in the user immediately finding current information about the goods with prices and discounts and being redirected to the section with the goods they searched for. This results in a decrease of CPC (Cost per Click) and an increase in the number of ad impressions. A higher sales result is achieved with a lower advertising budget because ads are maximally close to what the potential buyer is searching for.
Manual advertising campaigns. These are created in conjunction with automation strategies because all manual campaign settings can be managed and influenced. The main condition is to focus on ROAS and CPO.
Main demand in search engines comes from direct searches of their main products – pizzas. It was a challenge to expand the reach audience. To achieve it, we attached campaigns regarding to the secondary but related to pizza searches and audiences: children and other parties, events in the nature, workouts etc.
As a result, the audience reach increased by 26% and revenue from paid ads increased by 5%.
Success in a significant increase of revenue from searches by competitors.
Additional automation tools. Automatic ad text settings where one ad text is automatically paused, and another is turned on. An excellent tool for successful big sale and short-term promotion campaigns. This tool’s settings eliminate human error, and as a result, inactive promotions are not shown to the user.
The objective of Display is Reach and Brand awareness (addressing a wider audience), also remarketing is significant for audience structuring: new (those who have not been on the web for at least 30 days), returning (various interactions with offers, cross-sales, up-sale), and look-alike audience.
Audience segmentation is performed according to the following:
Creatives. Different Facebook & Instagram types of Creatives are tested.
Remarketing is used. Different segmentation tests are performed according to the prices of goods, for example, to show goods with prices from X euros and from Y euros. The results obtained are analysed according to the ROAS (Return on Ad Spend).
Audience structuring: new (those who have not been on the web for at least 30 days), returning (various interactions with offers, cross-sales, up-sale), and look-alike audience. Determination of the client look-alike audience is based on the analysis of the buyers’ lifetime values. It is based on the buyers with the highest ROAS and revenue.