HotTub Co., a renowned manufacturer of high-quality hot tubs, had been operating exclusively as a B2B enterprise since its inception. Its key business was selling their products to large retail chains and home improvement stores. However, recognizing a shift in market dynamics and the rise of e-commerce, the company decided to diversify and adopted a direct-to-consumer (D2C) model. This case study provides a detailed analysis of HotTub Co.’s strategic move towards B2C, which led to a remarkable increase in monthly revenue from $0 to $450,000 within just three months of launching their online shop.
The decision to pivot from a traditional B2B model to a more customer-centric B2C model was not without its challenges. These included:
Customer Targeting: The shift from B2B to B2C required identifying and effectively reaching a new audience.
Maintaining Dealer Relationships: Launching a direct-to-consumer channel could have potentially strained relationships with existing dealers due to perceived competition.
Balancing Pricing Strategy: Establishing a competitive pricing model that wouldn’t undercut their B2B partners while still appealing to B2C customers was crucial.
Digital Visibility: The company had to boost its online visibility to reach potential customers.
Online User Experience: It was essential to develop an e-commerce platform that offered an excellent user experience.
In the case of launching new Google ad campaigns, including shopping, search, and display campaigns, the results were nothing short of spectacular.
The strategy behind this growth included a comprehensive approach that leveraged Google’s diverse advertising channels. The shopping campaign showcased the products with appealing visuals and competitive pricing, making them easily accessible to potential customers. The search campaign was optimized with well-researched keywords and compelling ad copy, ensuring that the ads appeared prominently in relevant search results. The display campaign utilized engaging graphics and targeted placements to attract a wider audience across various websites.
By understanding the target audience and leveraging the unique strengths of each advertising campaign, the company was able to achieve growth from zero to tens of thousands, proving the effectiveness of a well-crafted online advertising strategy.
The launch of new Meta ad campaigns, including customer lookalike, interests-based targeting, and retargeting initiatives (for both website users and social network engagers), yielded impressive results, significantly assisting in increasing overall site revenue.
The customer lookalike campaign leveraged existing customer data to target potential customers who share similar characteristics, helping to broaden the customer base. By focusing on interests-based targeting, the campaign was able to effectively hone in on users who expressed interest in similar products or services, significantly increasing the likelihood of conversions.
The retargeting campaign was a key component of the strategy, directed towards two distinct groups: website users and social network engagers. For website users, the campaign served tailored ads to those who had previously visited the site but did not complete a purchase, gently nudging them towards conversion. For social network engagers, ads were served to users who had interacted with the brand’s social media content, capitalizing on their demonstrated interest to foster stronger brand connections and encourage purchases.
Overall, the execution of these Meta ad campaigns was instrumental in driving a substantial increase in site revenue. By leveraging the power of targeted advertising across different audience segments, the company was able to effectively engage, convert, and re-engage users, resulting in a noteworthy enhancement in revenue growth.
UX A/B testing
HotTub Co. focused on providing an exceptional user experience on its online shop, conducting extensive A/B testing on the shopping cart and checkout process, and continuously optimizing the platform based on test results. The results of the UX testing were overwhelmingly positive:
By reducing cart abandonment and facilitating a smoother checkout process, HotTub Co. was able to capture more sales, contributing significantly to the revenue increase.
The company underscored the importance of bolstering its online footprint by adopting an all-encompassing SEO approach. This strategy entailed performing exhaustive keyword research to delve into search tendencies and consumer behavior. By crafting content optimized for SEO, the company was able to lure potential customers to its website. Moreover, by identifying and rectifying critical errors that were previously hindering organic traffic growth, the company further ensured an unhindered increase in its online visibility.
Critical note: Low Domain Link Rates
Solution: You should create a competitive strategy for building the link mass to the site using high-quality donors.
Goal: Increasing the ranking of the site, by growth confidence on search engines, increasing the position of keyword phrases.
Critical notes: Loading speed. Core Web Vitals
There are Critical notes of Core Web Vitals that affect a site’s SERP and behavioral factors of users.
Solution: It should be optimize your site code and layout to increase page load speed and improve user experience on your site.
Critical notes: There is no logical navigation menu with a list of categories and subcategories
The site lacks a structure and navigation menu, as a result of which, on many pages, users cannot get from one page to another.Solution: Focusing on competitors, assortment and demand, draw up an extended site structure. Implement a menu on the site with a drop-down list that will contain all categories and subcategories.
Goal: Improving behavioral factors and time spent by users on pages, increasing the relevance of pages, the quality of crawling and indexing of the site. Users will better navigate the site. Simplify navigation between site pages. Increasing conversion rate on the site.
Critical notes: Get-parameter Pages
Solution: It’s should to close pages with get-parameters from indexing using meta tags <meta name = “robots” content = “noindex, nofollow” /> and remove the canonical attribute.
Goal: Improved crawling of site pages, which will speed up the re-indexing of existing pages and indexing of new site pages.
HotTub Co.’s impressive leap in revenue within three months of launching its online shop is an outstanding testament to its successful transition from a B2B to a B2C model. This remarkable transformation was catalyzed by a well-planned and adeptly executed marketing strategy, which not only boosted the company’s online visibility but also significantly enhanced its customer experience. By spotlighting its unique selling proposition and offering competitive pricing, HotTub Co. effortlessly drew in a new market segment. The seamless and optimized online shopping experience further sealed the deal, enabling the company to extend its reach directly to the end consumer market. As a result, HotTub Co. didn’t just transition to a new business model; it pioneered a new phase of exponential growth, dramatically boosting its monthly revenue and establishing itself as a force to be reckoned with in the consumer market.