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+7% IN ROAS & +42% GROWTH IN REVENUE

By HAGAKURE, A/B testing & Advanced conversion tracking

Welhof
+ 0 %

Growth in revenue

+ 0 %

Groei in ROAS  

+ 0 %

Groei in sales

About Welhof

Welhof is the market leader as a supplier of refurbished/second-hand white goods. Yet Welhof also competes with parties such as Coolblue and Mediamarkt with new products.

Second-hand/refurbished products can be a big environmental gain. This is because the life cycle of a second-hand/refurbished product extends its lifespan. Good for the environment and your wallet!

The issue

Welhof’s ambition is to grow in revenue by increasing ROAS. Because 90% of its revenue comes in through Google Ads, this is an important factor. In 2022, they saw that revenue remained consistent every month without any growth. The account was running on Google’s autopilot, so to speak. As the budget was at maximum, the question was how to achieve this. Welhof’s ambition was to achieve a monthly turnover of €950K (all channels combined). As this was a big step forward, we saw this within DGTLbase as a challenge.

Research, potential and organic ROI

Based on in-depth market research
we decided to focus the SEA strategy on three pillars.

CLEAR TRAFFIC / Structure.

Due to the broad approach, the same search terms were also triggered in different ad groups. This caused confusion in reporting and no control over the landing page of the relevant keyword. The right data is essential for reporting, A/B testing and optimizing campaigns.

A/B Testing OM leverages machine learning to its full potential.

Google learns from machine learning who your potential customers are and targets this group. Once targeted, the ad must be as attractive as possible to click on. This is where A/B testing comes in. After all, there is no one-size-fits all.

Advanced conversion tracking

The third aspect to better manage an automated bidding strategy is to use advanced tracking methods. During the analysis, we saw that enhanced conversions, server side tracking, cookie consent mode, returning vs new customers & POAS tracking were not used.

After implementing advanced conversion tracking, we saw a 20% conversion boost. As a result, we feed the algorithm with even more data.

The solution & implementation

  1. First of all, we changed the revenue within Google Ads to revenue excluding VAT so that we can drive the POAS. We responded by adjusting ROAS targets to the POAS.
  2. We implemented Enhanced Conversions. This ensures that all conversions are compared with additional information such as name, address & email.
  3. We also implemented Cookie Consent Mode within Google Ads, so that customers who refused cookies were still included in conversions.
  4. Through Server Side Tracking, we are now tracking more data and are futureproof by ending the cookieless era.
  5. New vs Returning customer data implemented so we can report on it and bid more on new customers.

The results

Through a strategic restructuring of the account, we achieved a monthly revenue of €950,000+ within 6 months after taking over the account.

In addition, we grew ROAS by 7% while having a growth in ad spend of 32%.

 

 

 

 

 

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