How we increased annual turnover in new markets from €0 to €1,200,000
Home and Garden
Google Ads, Facebook Ads
No. of specialists
You won’t find Foxigy in Slovakia (yet). The company operates under the brand names Bestent and Profigaráž. This successful Slovak retailer of home, garden and workshop products was ready to expand in 2020 and was looking for a partner to help with market selection and advertising campaigns.
Today, it successfully sells in six countries and together we are preparing for further expansion. The Foxigy brand will soon also launch in the SK and CZ markets.
Annual turnover of €1,200,000 in new markets
In twelve months we have gone from a turnover of zero to more than a million in new markets.
The starting point
The client approached us in 2020 with the intention of expanding abroad. At that time, they were already selling in the Czech Republic and Slovakia and wanted to expand into other foreign markets. Ideally, they wanted to achieve the same high-quality turnover as in Slovakia.
We were able to embark on the expansion process pretty much immediately. The client had fine-tuned processes, technical facilities, transport arrangements, and a sufficiently diverse product range and they knew where they wanted to expand to.
Below the set CTR within 3 months
In December 2020, we started ramping up sales in Hungary and Romania. The strategy was to maximise turnover at a sustainable cost to sales ratio (CTR). We achieved our target CTR in the third month after entering the new markets.
Good figures were not created by chance, but through a combination of:
- the right social media strategy,
- PPC campaigns tailored to different markets,
- suitable rebranding,
- an experienced Dexfinity export team,
- and a particularly well-prepared client.
Thanks to growing turnover and a sustainable CTR, Foxigy was able to expand into two more countries in 2021 – Bulgaria and Slovenia.
Shift from the Bestent brand to Foxigy
In Slovakia, the client has several domains with different names (Bestent, Profigaráž, etc.) and each offers a slightly different range of products. We went to the foreign market with a single online store, where we merged the products from all the Slovak sites.
We embarked on the expansion with the name Bestent, which was created for the garden equipment range. The client quickly realised that this name was no longer a good fit and the new brand Foxigy was created.
Our new task was to ensure a smooth transition from Bestent domains to Foxigy.
Social media strategy
We used social media to find potential customers, maximise conversions and optimise CTR.
We focused on fine-tuning all channels, including Facebook and Instagram Shop, which brings in a small, but not insignificant amount of traffic and purchases. We needed to get a sufficient number of followers, as the number of followers is one of the prerequisites for its’ foundation.
In our experience, gaining fans on Facebook is not as much of a challenge as it is on Instagram. That’s why instead of using campaigns to collect likes, which can only be done on Facebook, we selected engagement campaigns as part of our strategy. Thanks to these, the growth on both channels was organic.
The best performing trio was a combination of performance campaigns, brand campaigns and traffic-boosting campaigns. We retargeted people who responded to the ad through remarketing.
The client was also successful in selling more expensive, higher margin products and we could afford to track the total CTR rather than the cost-per-purchase.
Surprising results in the Slovenian market
We approached each country differently. In the Hungarian market, social media worked best with dynamic campaigns, but customers didn’t respond well to sudden discounts. By contrast, in Romania, sale campaigns performed exceptionally well.
The most interesting results came from Slovenia. Paradoxically, social networks, which are more of a conversion trigger in other markets, generate almost the same turnover as Google Ads. The turnover is mainly driven by dynamic product campaigns.
“After careful analysis, we decided that Dexfinity would be the most suitable export partner for us. The main factor was the staffing of the team that would work on the project, because their export team is full of experienced and skilled individuals.
After almost two years of cooperation, I can say that this decision was the right one. We are delighted that they are the reason behind our export success, and we owe them a big thank you for that.”
Success also came with its’ drawbacks
When we initially transitioned to the new Performance Max campaigns, we did encounter some poor performance. Spring 2022 was approaching and the client needed to sell a new product. The most difficult situation was in the Hungarian market, where adjusting the signals helped.
The situation stabilised and by May 2022, PMAX campaigns were the top performing channel.
The Slovenian market also posed some difficulties in the beginning. The results showed a high CTR. Thanks to Google Tag Manager, we fixed the bugs and added add to cart conversions to Google Ads, which resulted in better smart bidding (automated bidding that uses machine learning to increase conversions).
In Bulgaria and Slovenia there is no Merchant Center and we could not build campaigns solely on product feeds. Through testing, we found that a search campaign worked much better.
Paid advertising brought in as much as €850,000 in a year
In our campaigns, we focused on the most historically successful products. These change throughout the year as Foxigy’s range is seasonal.
When planning advertising campaigns, we had to take into account the differences between markets. In Slovenia, Romania and Bulgaria, search campaigns helped to increase sales, but in Hungary they did not do so well. In Romania, smart display was weak, but Performance Max campaigns did well.
Once we understood all the subtle variations from market to market, the results started rolling in:
- In 12 months we went from 0 to a total turnover of €1,200,000 in new countries.
- We generated Foxigy a turnover of €850, 000 from Google advertising and social media alone.
- The Hungarian market has been growing steadily year-on-year (except for March 2022, which was linked to the start of the war in Ukraine).
- In Romania, we managed to ramp up paid advertising so much in a year and a half that it now delivers up to 80% of turnover. Quality campaigns have completely trumped organic leads.
- Between January and April 2022, turnover from Google Ads in Bulgaria grew sevenfold.
A savvy owner inevitably plays a role in results like these
If we are talking about success, the client themselves played a huge part in the results. Foxigy has a very well-distributed and year-round product portfolio. The owner approached us at a time when the online store was ready for expansion. They promptly handled shipping, warehousing and all the processes that can affect campaign performance.
The project in numbers
Annual increase in turnover
In the first quarter of 2021, turnover from Google Ads and social networks was €131,000. In 2022, in the same quarter, it already stands at more than double at €300,000.
Total annual turnover in new markets
In 12 months we went from zero turnover to a turnover of more than a million in new markets.
We successfully entered four new markets in the course of one year – Hungary, Romania, Bulgaria and Slovenia.
The experts behind this project
Ivan has been in online advertising for 20 years and in e-commerce since 2013. He has experience in developing online stores from scratch all the way to successful expansion. Today he is responsible for annual budgets exceeding the 1-million-euro mark. He lives in Bratislava with his family. His experience with hard work and achieving goals stems from his youth, when he represented Slovakia in road cycling.
Share the Case Study
DIRECT CONTACT DETAILS
Let's join forces.
Share your project with us and let’s discuss it’s potential.
Select all the areas you are interested in.