WeGotLites.com grows returns on ad spend with Infernotions’ revenue attribution

WeGotLites.com used Infernotions’ revenue attribution solution to chandelier

  1. Identify Bing as an under-leveraged channel (especially for driving phone sales)
  2. Create campaigns specific to audience who convert on phone
  3. Grow Returns on Ad Spend (ROAS) by up to 500% through spend shift.
  4. Isolate non-producing affiliate channels

About WeGotLites

WeGotLites grew out of four generations of experience owning & operating over 20 luxury home and commercial lighting showrooms. In late 1998, realizing that the Internet could revolutionize the way consumers purchase luxury lighting products, WeGotLites launched a simple utilitarian site on the internet. Since then the company has built on its industry knowledge, manufacturing skills, and extensive inventory at its warehouse in New York to become one of the leading and most-trusted virtual showrooms for high-end products. WeGotLites is the place to find high-end custom made products at affordable prices. Its store provides a wide and ever changing variety of items from chandeliers made with Swarovski Crystals to elegant lighting for every room in the home.

Problem

Alan Young, Director of E-commerce and Marketing for WeGotLites wanted to know which marketing channels

Alan Young
Alan Young, Director of E-commerce & Marketing

were driving his revenues – both on phone as well as online. He was also interested in the impact of its comparison shopping campaigns. Last click attribution methods could not answer these questions. He brought in Infernotions to answer the following questions

  1. What is each marketing channel delivering in sales to the company?
  2. How should he change his spend allocation?
  3. Which campaigns have been most effective?

Solution

WeGotLites engaged Infernotions’ revenue attribution solution and quickly realized that

  1. Comparison shopping channels were not a significant factor in driving sales (either on the web or on the phone)
  2. Email had shown a dramatic improvement in performance over the last twelve months (consistent with new initiatives launched in house)
  3. Bing and Google ads were equally effective in driving web sales
  4. Bing was four times more effective in driving sales that closed on the phone

The team hypothesized that Bing users corresponded to users who were using the default IE browser with the Windows operating system. This audience preferred talking with call center support before completing a sale that could be upwards of $500 for a chandelier. While the hypothesis was not immediately verifiable, the analytics highlighted the importance of Bing in converting phone sales.

Further analysis discovered that

  1. Google ads had reached the phase of flat returns. I.e. increasing spend on current campaigns would not yield proportionately higher sales
  2. Bing ads, on the other hand, were still on the steep growth slope and there was significant upside potential. Every incremental $10 spent on Bing would yield an incremental $50 in sales – a 500% ROAS.

Curve-of-diminishing-returns-on-search-spend
Lastly, Infernotions’ revenue attribution solution also profiled campaigns on their impact to sales (web and phone channels). The analysis identified two campaigns that had performed well till the last quarter of the previous year but whose revenues dipped from January. This timed with a shift in vendor strategy. WeGotLites planned to re-visit the strategy in consultation with the vendor.

“Before Infernotions we would collect data on clicks and spend but had difficulty linking ad performance to sales. Furthermore, the impact to phone sales was largely unknown. Infernotions shed light on what’s working and how well. Some of this was common knowledge – like the declining returns on increasing Google spend but the Bing opportunity is a big insight for me and I am going to use it in the months to come.” – Alan Young, Director of E-commerce and Marketing

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