To increase your market share, you have to increase your spend, right? Well, it’s certainly one method, but if you tap into the power of word-of-mouth, you can increase ROI while keeping your budget where it is.
The eCommerce brands we work with have one – or more! – of the following problems in common:
- Diminishing returns from ad spend, in particular with the social networks – Facebook et al
- Losing or stagnant market share as they were unable to compete on budgets with the competition
- Low conversion rates from marketing activity – people would arrive at the store but not purchase
In short, they needed more customers and their current spend to acquire them wasn’t cutting it.
Word-of-mouth provides quality of assurance and is a key driver of sales for eCommerce businesses. However, word-of-mouth has been a passive channel for businesses.
This meant they had to rely on “spray and pray” tactics to get their ads in front of lots of people, instead of the right people.
Working with Herdify
By analysing their existing customer data, Herdify were able to identify where offline word-of-mouth type behaviour looked to be happening to target their adverting spend.
Using the monthly dataset provided by Herdify, they were able to:
- Immediately focus their paid spend on delivering more customers
- Do this without increasing paid media spend
- See a positive ROI within five months of subscribing to Herdify
They achieved more and gained new customers, without spending a penny more.
How they did it
- Focused their PPC activity in geographies where customers had the highest propensity to purchase based on word-of-mouth. They used this to bid higher in areas with a higher propensity for warm prospects
- Focused their online advertising in geographies that would stimulate short term purchases, but also reinforce word-of-mouth conversations for buyers not yet in the market
- They drastically reduce wasted door drops by focusing on areas where the door drop was more likely to be seen by somebody warm to the brand
How it works
- Herdify take a monthly feed of their sales data. This is done in a fully GDPR compliant way and doesn’t require customers’ personally identifiable information
- They receive a monthly data set with the target word-of-mouth locations
- They uploaded this data to the audience managers of Facebook, Google, etc or provided it to their media buying agencies*
*Don’t have a media buying agency but want one? We have a few select partners we work with and are happy to make a – word-of-mouth! – recommendation
2020 saw a 43%* rise in eCommerce businesses