Who the client is
Ladymakeup is an e-commerce company operating in the cosmetics industry, focusing primarily on two markets. Its products can be purchased by customers from over 50 countries, to which the client ships. The store offers a wide selection of beauty products, for both makeup and skincare, aimed at individual customers, including industry professionals.
The starting point
- Lack of a scaling strategy. The company needed a coherent, data-driven growth strategy that would allow it to increase revenue and expand effectively in international markets.
- Differences between markets. An analysis of CRM data revealed large discrepancies in customer value (LTV) between countries; in one of them, customers generated up to 460% higher value than in the others.
- Low basket value and purchase frequency. The average order value and the number of returning customers were lower than the market potential would suggest.
What was done
Increasing average order value (AOV)
- CRM data showed the average order value in Country A was 324% higher than in Country B, while the cost of acquiring a new customer (nCAC) was also lower. The recommendation: concentrate marketing efforts on Country A, then test additional markets with similar or higher potential.
- Sections such as "Others also viewed" and "Bestsellers" were recommended, estimated to raise the average order value by 10–20% where currently missing; product bundles and a Bestsellers section in the cart tailored to the user's country, since users from Countries A and B buy different types of products.
- Promotional campaigns often had no clearly defined duration visible on the site; a countdown timer was suggested.
Increasing purchase frequency and customer lifetime value (LTV)
- Users from Country A buy far more often than those from Country B, which translates into 464% higher annual revenue per user. The potential of PPC remarketing was not fully utilized; dynamic remarketing based on specific products was suggested.
- Promotions were not being communicated in the PPC campaigns, especially remarketing groups; dedicated promotional campaigns were advised.
- A strong correlation (70%) between email marketing and the number of purchases was found, yet email to existing customers was infrequent; regular promotional email communication was proposed.
Increasing the number of customers
Comparing CRM and Google Analytics data identified the channels with the strongest correlation to purchases: Paid Search, Organic Search, and email marketing. The channel analysis revealed the potential to increase revenue from Paid Search by up to 200%. Recommendations: concentrate on those three channels, test new channels only after fully using the main three, and expand SEO to non-branded queries.
The result
As stated on the source: revenue from Paid Search grew by 200%. In Country A, revenue increased by 464% and the average order value (AOV) by 324%, while maintaining profitability and scaling activities at the same time.
What happened next
The coming months focus on implementing the recommendations, with real potential to double the results of the PPC efforts and plans to expand into additional markets.