How did we increase revenue by 200% through paid search for Ladymakeup.com?

How to scale an e-commerce cosmetics business by enhancing revenue and customer value?

Services
Growth Navigator
Website
https://www.ladymakeup.com/
Market
Poland Poland
Industry
E-commerce

200%

potential increase in PPC revenue identified

464%

higher LTV in Country A vs. Country B

10-20%

proposed boost in Average Order Value (AOV)

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About the Client

Ladymakeup is an e-commerce company operating in the cosmetics industry, focusing primarily on two markets. However, its products can be purchased by customers from over 50 countries around the world, to which our client ships. The store offers a wide selection of beauty products—for both makeup and skincare—aimed at individual customers, including industry professionals.

Challenges

Lack of a scaling strategy.
The company needed a coherent, data-driven growth strategy that would allow it to increase revenue and expand effectively in international markets.
Differences between markets.
An analysis of CRM data revealed large discrepancies in customer value (LTV) between countries—in one of them, customers generated up to 460% higher value than in the others. This potential needed to be identified and harnessed.
Low basket value and purchase frequency.
The average order value and the number of returning customers were lower than the market potential would suggest. This called for actions to increase AOV and LTV.

Our Solutions

At the outset, we carried out a comprehensive analysis of marketing, CRM, and Google Analytics data, allowing us to pinpoint exactly where the potential to scale sales lay. Our efforts focused on three key areas:

Increasing average order value (AOV):

Analyzing the CRM data, we noticed that the average order value in Country A was as much as 324% higher than in Country B, while the cost of acquiring a new customer (nCAC) was also lower.

  • On this basis, we recognized just how significant the differences in purchasing behavior between different markets can be.
  • Our recommendation was to concentrate marketing efforts on Country A, maximizing revenue from that market, and then to test additional markets with similar (or higher) potential.

To increase AOV, we recommended implementing sections such as “Others also viewed” and “Bestsellers”, which—by our estimates—could raise the average order value by 10–20% where they are currently missing. In addition, the analysis showed that users from Countries A and B buy different types of products.

  • We suggested adding product bundles to the offer, as well as a Bestsellers section in the cart, tailored to the user’s country of origin.
An example bestsellers section

We also noticed that promotional campaigns often did not have a clearly defined duration visible on the site.

  • We suggested using elements that build a sense of urgency—for example, a countdown timer showing the time remaining until the end of the promotion.

Increasing purchase frequency and customer lifetime value (LTV):

Further analysis of the CRM data allowed us to assess the frequency and value of repeat purchases. It turned out that users from Country A buy far more often than those from Country B, which translates into 464% higher annual revenue per user. At the same time, the potential of PPC remarketing campaigns was not being fully utilized.

  • Our suggestion was to launch dynamic remarketing campaigns based on specific products.

Promotional activities were not being communicated in the PPC campaigns, especially in the remarketing groups.

  • We advised expanding the reach of promotional messaging by rebuilding the ad account structure and creating dedicated campaigns (including remarketing ones) to inform customers about promotions.

An analysis of CRM and Google Analytics data revealed a strong correlation (70%) between email marketing and the number of purchases. Despite this, email activities targeting existing customers were carried out infrequently.

  • We proposed implementing regular email communication informing customers about current promotions.

Increasing the number of customers:

To determine how to effectively increase the number of customers, we analyzed which traffic acquisition channels generated the most revenue.
By comparing CRM and Google Analytics data, we identified correlations between traffic sources and the number of orders. This allowed us to understand how the share of individual channels changes over time and which of them have the greatest impact on sales.
The strongest correlations with purchases were shown by:

  • paid ads (Paid Search),
  • organic traffic (Organic Search),
  • email marketing.

What’s more, the channel analysis revealed the potential to increase revenue from Paid Search by up to 200%.
We recommended:

  • concentrating efforts on Paid Search, Organic Search, and email marketing as the key sources of customer acquisition,
  • testing new channels only after fully leveraging the potential of the three main ones,
  • expanding SEO efforts to include non-branded queries

Results

Thanks to our efforts, revenue from Paid Search grew by as much as 200%. In Country A, the results for LadyMakeup were even more spectacular. Revenue there increased by 464%, and the average order value (AOV) by as much as 324%. All of these results were achieved while maintaining profitability and scaling activities at the same time.

Summary

In the coming months, we will focus on implementing our recommendations. We see real potential to double the results of our PPC efforts. At the same time, we plan to expand into additional markets, because we know that choosing the right market is crucial for further business growth and increasing sales. We continuously monitor the impact of our recommendations and the changes we implement on the client’s results.

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