Solved: Low Conversion Rate and High CPA in D2C Pet Store

Hi there,

Thanks for getting in touch. I'm happy to give you some initial thoughts and guidance based on what you've described about your D2C eCommerce store selling high-end pet toys. It sounds like you're facing a fairly common challenge when relying heavily on influencer marketing without a robust GTM strategy. Don't worry though, there are plenty of things you can try!

We'll need to look at the landing page experience...

That 0.5% conversion rate from influencer posts to website visits is a red flag. It suggests that while you're generating traffic, something is seriously wrong with the landing page experience when people arrive. It's a bit like inviting someone to a party and then the music isn't working when they arrive. It might be worth looking into user experience issues on mobile, especially if your main traffic comes from it.

I'd start by thoroughly examining the landing page that influencer traffic is directed to. Is it mobile-optimized? Is the message consistent with the influencer's post? Is the call to action clear and compelling? Is the page loading speed acceptable? Use tools like Google PageSpeed Insights to check this. A slow loading page is a big no-no and can kill conversions.

Heatmapping tools like Hotjar or Crazy Egg can be invaluable here. They allow you to see how users are interacting with your page – where they're clicking, how far they're scrolling, and where they're dropping off. This can reveal hidden usability issues that are preventing conversions. For example, we worked with one client who had a really high bounce rate - turns out their 'add to cart' button wasn't visible on the first load on a phone, so we just tweaked the code and improved performance.

Consider A/B testing different versions of your landing page to see what resonates best with your audience. Test different headlines, images, calls to action, and even page layouts. Even small changes can have a big impact on conversion rates.

I'd say you should focus on retargeting...

A CPA of $75 for pet toys is definitely on the high side. To bring that down, I'd strongly recommend implementing a comprehensive retargeting strategy.

Retargeting allows you to target ads specifically to people who have already interacted with your brand in some way – for example, by visiting your website, viewing a product page, or adding an item to their cart. These users are already familiar with your brand and are more likely to convert, so retargeting can be a very cost-effective way to drive sales.

I'd recommend using a mix of different retargeting tactics. For example, you could create ads that target website visitors who didn't make a purchase, or ads that target people who added items to their cart but abandoned it. You can also use retargeting to upsell or cross-sell to existing customers. We've had a subscription box client who saw massive improvement by cross-selling related products.

Make sure your retargeting ads are highly targeted and relevant to the user's past behavior. For example, if someone viewed a specific product page, show them an ad for that product. If someone added an item to their cart but abandoned it, remind them of the item and offer them a discount or free shipping to entice them to complete the purchase. Experiment with different ad formats and creative to see what works best. Video ads can be particularly effective for retargeting, as they can help to re-engage users and remind them of your brand's story. Think about different angles you could test here!

Also make sure to implement conversion tracking properly so you know exactly how much each sale is costing you. It's easy to set up with Google Analytics, then you can import the data into Google Ads and Meta Ads Manager. This allows you to track which campaigns, ad sets and ads are driving the most sales, and helps you optimise your campaigns for maximum ROI.

You probably should re-evaluate your influencer marketing strategy...

While influencer marketing can be a powerful tool, it's not always a guaranteed success. It's important to carefully evaluate your influencer marketing strategy to make sure it's aligned with your business goals and that you're working with the right influencers.

Firstly, are you sure the influencers you're working with have a genuine connection to your target audience? Are their followers actually interested in pet toys? It's easy to get caught up in vanity metrics like follower count, but what really matters is engagement and relevance. Micro-influencers with a smaller but highly engaged audience can often be more effective than larger influencers with a broader audience. We've seen this firsthand with our luxury brand launch client.

Secondly, are you giving your influencers enough creative freedom? While it's important to provide them with clear guidelines and messaging, you also want to give them the space to create content that feels authentic and resonates with their audience. Overly scripted or promotional content can often come across as insincere and turn off potential customers.

Consider diversifying your marketing channels. Relying solely on influencer marketing can be risky. You'd probably be better off testing different channels like Google Shopping ads or even setting up an affiliate programme.

You'll need to think about your average order value...

The £75 CPA is high, as I've said before, but whether it's too high will depend on your average order value (AOV). If your AOV is only £30, then you're losing money on every sale. However, if your AOV is £150, then a £75 CPA might be acceptable.

If your AOV is low, you'll need to find ways to increase it. One way to do this is to offer bundles or discounts for purchasing multiple items. You can also try upselling or cross-selling to existing customers. For example, if someone purchases a dog toy, you could offer them a discount on a bag of dog treats. Another tactic could be to offer free shipping on orders over a certain amount, this encourages customers to spend more to qualify for free shipping. I'd recommend trying a few of these out.

I've detailed my main recommendations for you below:

I hope these initial thoughts are helpful. Getting a D2C ecommerce brand off the ground is never easy, but with the right strategy and execution, you can definitely achieve your goals.

Of course, this is just a quick overview, and there's a lot more to consider when developing a comprehensive marketing strategy. We have helped multiple pet brands, and brands in similar industries, to develop their marketing. If you'd like to delve deeper and get more tailored advice, we offer free consultations where we can discuss your specific needs and challenges in more detail. This would involve us taking an in-depth look into your website, current ad strategy, and wider marketing activities.

Regards,
Team @ Lukas Holschuh