Introduction:
Makers Market, an established Sydney based ecommerce site specialising in machines and tools, engaged Mavero Digital to leverage their giveaway platform, MAVERO+. The goal was to redirect their advertising budget into promoting a paid-to-enter giveaway designed to achieve a higher return on investment (ROI) by directly subscribing customers to their mailing lists. This case study explores the strategy, implementation, and success of this promotion.
Background Information:
Makers Market, trading online for almost 12 months, specialises in providing a wide range of machines and tools to both hobbyists and professionals. The company’s mission is to supply high-quality equipment that empowers creators and builders to bring their projects to life. Despite being relatively new, Makers Market has quickly established a reputation for reliable products and excellent customer service.
The machine and tool ecommerce industry has seen significant growth, particularly driven by a surge in home hobbyists. This trend has been spurred by the availability of easy-to-learn skills on platforms like YouTube and a shift towards increased domestic spending in the wake of the COVID-19 pandemic. As more individuals engage in DIY projects and home improvements, the demand for quality tools and machinery has risen sharply, presenting both opportunities and challenges for companies in this sector.
The Challenge:
Makers Market faced the challenge of effectively marketing to the growing segment of home hobbyists. Despite the increased demand for tools and machinery, the company needed a strategic approach to reach this specific customer type and engage them in a meaningful way. The primary objectives were to identify where these customers could be found and to offer them a unique opportunity to subscribe to Makers Market’s business. By doing so, the company aimed to build a direct relationship with their customers, enhancing customer loyalty and increasing their subscriber base.
Approach:
To address the challenge of effectively marketing to home hobbyists, Makers Market developed a strategy centred around a paid-to-enter trade promotion giveaway. The giveaway featured a brand-new, well-known brand hobby-sized machine, complete with all necessary tools and add-ons, ensuring the winner could start working on projects from day one. This approach was designed to attract and engage the target customer base by offering a highly desirable prize.
- Utilising MAVERO+: Makers Market partnered with Mavero Digital to use their giveaway platform, MAVERO+. This platform streamlined the process for customers to purchase memberships that included entry into the giveaway.
- Partnerships: To enhance the value of the membership, Makers Market brought onboard several partners who offered discounts and deals at their businesses. This, combined with discounts available in Makers Market’s own store, made the membership more appealing to potential customers.
- Promotion: A comprehensive marketing campaign was launched to promote the giveaway and the associated membership benefits, targeting home hobbyists through various channels.
Solutions and Implementation:
MAVERO+ from Mavero Digital served as the solution, offering a managed or do-it-yourself giveaway platform. Makers Market chose to manage the giveaway themselves on the platform, leveraging the guidance provided by Mavero Digital. This guidance included expertise in pricing the giveaway tiers and structuring the membership model. Although Makers Market decided to run the promotion for six weeks, they quickly realised that shorter promotions create a sense of urgency and fear of missing out. The majority of entries and revenue were generated in the last three days of the promotion. This experience underscored Mavero Digital’s deep understanding of effective giveaway strategies.
The onboarding process with MAVERO+ was swift and efficient. Mavero Digital handled all setup aspects and offered to build the first giveaway for a fee. They provided continuous support throughout the process, including how to pull and analyse relevant data. The ease of use and comprehensive support made the implementation straightforward and user-friendly.
Results and Outcomes:
- Investment and Expenses: Makers Market invested $6,875 in a machine for the giveaway (purchased on sale with a normal RRP of $7,975) and $2,300 on advertising.
- Cost per Acquisition: The initial cost per acquisition was under $1, which increased to $3 over time.
- Entries and Revenue: The giveaway attracted a total of 421 entries, with entry fees ranging from $10 to $375. The total sales from the promotion reached $14,000.
- Subscriber Growth: Makers Market grew their subscriber list by 85% of the entrants.
- Facebook Group Growth: As a part of the promotion, all entries were directed to a Facebook group, resulting in a 90% increase in group members.
- Partner Sign-ups: Five partners joined the giveaway, each paying a $250 signup fee, contributing an additional $1,250 in revenue.
Qualitative Results:
- Customer Engagement: The promotion led to increased customer engagement, with many participants becoming repeat customers.
- Brand Perception: The successful promotion enhanced Makers Market’s reputation among home hobbyists, positioning the brand as a leader in the machine and tool ecommerce space.
Comparison:
The results exceeded Makers Market’s initial objectives by not only effectively marketing to home hobbyists but also significantly growing their subscriber base and creating a vibrant online community through the Facebook group. The collaboration with partners further expanded the reach and appeal of the promotion.
Conclusion:
The challenge was to grow the customer base and brand recognition through a giveaway. The solution was to use the MAVERO+ platform and the expertise they bring. The outcomes were highly successful, doubling the investment, growing the customer base, and increasing brand recognition.
Key Takeaways:
One of the critical lessons learned was the value of running a giveaway with a trusted brand and a desirable product. This approach not only attracted a large number of entries but also fostered repeat participation and engagement.
Future Outlook:
Given the success of the promotion and considering the slowing economy and hobby market, Makers Market is contemplating transitioning to a giveaway-only model. This strategic shift aims to capitalise on the effectiveness of giveaways in attracting and retaining customers.
