How to rocket food delivery online sales in 6 months. Growth by 250%
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
2018-2020
2018-2019
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.
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.
additional SEO improvements.
Goal: Become the leader of food delivery & pizza e-commerce.
Get the buyer involved in communication with the brand by creating a comfortable environment for online shopping (comfortable functionality, new products, attractive promotions, a variety of delivery methods, high customer service level).
Segment the audience into new, returning, and portfolio when making personalized offers.
Stimulate shopping using e-commerce settings in Google Analytics, Google Ads, and personalized offers.
Installing and setting up the e-commerce module: Google Analytics e-commerce is installed in 2017. All advertising campaigns are adapted to it.
Detailed analysis on a monthly base (presenting to the Board):
- sales by the channels: all online channels, all offline channels: by phone, in pizzerias)
- analysis of paid search channels (all which under the Agency and other partners responsibility)
- analysis of the sales of each product and each bundle by the channel
- recommendations for improvement
Installation of e-commerce opened the following opportunities:
- sales by the channels: all online channels, all offline channels: by phone, in pizzerias)
- analysis of paid search channels (all which under the Agency and other partners responsibility)
- analysis of the sales of each product and each bundle by the channel
- recommendations for improvement
Revenue EUR:
- 2017, the month when we took over the ads from another agency, a significant influence of SEO
- 2020, the month after 2 Years of cooperation: growth by 285%
Number of purchases:
- 2017, the month when we took over the ads from another agency, a significant influence of SEO
- 2020, the month after 2 Years of cooperation: growth by 225%
The dominating part of the total Revenue consists Organic Search & Paid Search (in average 69 % from total e-commerce Revenue):
Revenue EUR from Paid Search & Display & Organic Search
- 2017, the month when we took over the ads from another agency, a significant influence of SEO
- 2020, the month after 2 Years of cooperation: growth by 285.4%
Number of purchases from Paid Search & Display & Organic Search
- 2017, the month when we took over the ads from another agency, influence of SEO
- 2020, the month after 2 Years of cooperation: growth by 254%
Conclusion: The impact of Paid Advertising and SEO on Revenue is huge. The total sales increase in e-commerce happened and relied on an increase from Paid Search and SEO.
CPO (Cost per Order) changes
- 2017, the month when cooperation has started
- 2020, the month after 2 Years of cooperation: CPO decreased 15 times.
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.
Google Display
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:
- adds goods to basket
- time period when the item was added to the basket, e.g. 1 day ago, 3 days ago,1 week, or 2 weeks ago
- goods prices, for example, not showing goods with the price below X euros.
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.
Conclusions
- Shopping in online for food deliveries has become convenient thanks to the variety of payment methods, delivery methods and its speed.
- Waiver of cash payments on the food delivery receipt can significantly and very quickly decrease the delivery amount of the order amounts in e-commerce (especially, amongst teenagers and young adults).
- The app development and promotion is a significant online sales cornerstone for food delivery.
- Also, the waiver of order acceptance through the phone decreases the order amount in e-commerce. That is why for a successful promotion of online pizzerias, marketing specialists not only need to know the advertising platforms and their tools, but also have knowledge of the client’s products, competitors, delivery and payment methods, because the impact of change can be significant.
A correctly chosen strategy and e-commerce structure, sufficient marketing budget, as well as the use and continuous testing of new audience segmentation tools, form the promotion strategy for online products. Result – increase in sales by 250%!
