Project Info
Client: myrawjoy.com
Industry: Organic Foods (Vegan & Raw Foods)
Target Markets: European Union, Germany, United Kingdom, Czech Republic
Goal: Build brand presence online, test new markets, and increase revenue and margins
Date: Winter 2024
Objective: Develop a conversion-optimized e-commerce platform to expand into European markets and boost profitability.
In 2024, I led the design and development of a conversion-optimized e-commerce platform for My Raw Joy, an organic snacks brand. The project aimed to enhance the brand’s online presence, increase revenue, and explore new market opportunities within the European Union. The project successfully increased revenue by 4x and improved profit margins by eliminating wholesalers from the sales process.
Challenge:
My Raw Joy had limited sales channels, relying on a small online store and physical retail partnerships in the Czech Republic. The brand struggled with low margins and unfavorable agreements due to its small size. Their desire to expand beyond the Czech market led to the hypothesis that targeting the UK and Germany with an English-speaking online store could provide a scalable, cost-effective solution.
However, without investing in foreign warehouses, it was important to develop a strategy that allowed for testing new markets while avoiding large upfront costs. Additionally, the brand needed to improve profit margins by cutting out intermediaries and establishing direct-to-consumer sales in these new markets.
Solution:
The solution was to build a conversion-optimized Shopify platform that catered to three separate markets: the Czech Republic, Germany, and the United Kingdom. By implementing strategies like localized content, multi-currency support, and automated marketing flows, the platform was designed to increase brand visibility, engage new customers, and boost online sales. Key features included:
- Localized Content: Custom messaging for each target market to create a relevant and engaging experience.
- Optimized User Experience: A streamlined, mobile-friendly interface that maximized conversions, including upsell and cross-sell functionality.
- Direct-to-Consumer (D2C) Model: Cut out wholesalers, allowing for higher profit margins and control over the customer experience.
To further increase conversions and reduce costs, automated email flows and a strong content marketing strategy were employed to drive consistent traffic and increase repeat purchases.
Analysis Conducted:
- Market Research: Examined the organic food market in Germany, UK, and Czech Republic to identify key customer segments, purchasing behaviors, and preferences.
- Competitive Analysis: Reviewed competitors in each market to understand their pricing, marketing tactics, and customer engagement strategies.
- Risk Assessment: Evaluated the potential risk of expanding into the UK due to post-Brexit delivery challenges and intense local competition, while identifying Germany as a high-potential market.
- Conversion Optimization: Conducted A/B testing on product pages, checkout flows, and upsell strategies to maximize average order value and improve conversion rates.
Key Metrics & Results:
The project yielded impressive results across multiple fronts:
- Revenue Growth: The brand’s online revenue increased 4x within the first six months of the platform’s launch.
- High Average Order Value: The average order value (AOV) reached €65, which is particularly notable considering the average product price of €4. This high AOV was driven by upsell and cross-sell campaigns.
- Customer Acquisition Costs: Monthly customer acquisition costs decreased by 50% due to automated upsell and cross-sell flows, as well as content marketing that generated €3k/month in additional revenue.
- Market Penetration:
- Germany: Proven to be the most lucrative market, with a 3x increase in revenue compared to the Czech Republic.
- Czech Republic: Saw steady growth, but remained a smaller market.
- United Kingdom: Faced challenges due to high post-Brexit shipping costs and intense local competition, which hindered the sustainability of the English-speaking market model.
Test Results & Insights:
While the project was successful in many ways, the testing phase revealed some unexpected challenges:
- The UK market proved to be difficult due to high delivery costs post-Brexit and strong competition from established local brands. The hypothesis about targeting English-speaking European markets did not hold up as expected, with the cost of customer acquisition being higher than projected.
- Germany turned out to be a highly profitable market, with strong engagement and significant sales growth.
- Localization efforts were critical for increasing conversion rates in both the German and Czech markets. However, for future expansion, further localization of the UK site and content is recommended to make the brand more competitive in the UK market.
Key Takeaways:
- Market Testing: It is important to test new markets before fully committing. The German market was highly receptive, while the UK market presented challenges due to Brexit-related issues.
- Conversion Optimization: Optimizing the user experience, implementing upsell and cross-sell strategies, and utilizing automated marketing campaigns were crucial in increasing sales and reducing acquisition costs.
- Localization: Further localization, particularly for the UK market, could improve relevance and customer engagement, leading to more sustainable sales.
Next Steps:
- Further Localization: The UK market requires additional localized efforts to address customer preferences, shipping costs, and marketing targeting.
- Continuous Optimization: Further A/B testing of content, pricing, and product offerings will ensure the platform remains optimized for conversions.
- Scale the Successful Markets: The focus will be on growing the brand’s presence in Germany and the Czech Republic, while cautiously exploring other potential European markets.
Project Screenshots:
