Silverline is a jewellery brand with a rich heritage, crafting striking contemporary and timeless pieces in silver and gold.
Is optimizing based on your Shopify AOV the correct way to scale the business?
The Answer is No, especially for brands with High catalog brand.
Why?
Here’s the scenario: Initially, a High Shopify AOV might seem like a win, this might happen because you have received a High Value order on a certain day, which resulted in a High Shopify AOV.
Lets dive in to how, why and what to it-
How did we do AOV analysis for a jewellery brand with high catalogue?
1. Firstly, we have exported all orders of last 30 Days, and then we have segmented the orders into different buckets like,
Below 1000
Orders from 1k -1.5K
Orders from 1.5K- 2k
Orders from 2K-2.5K
Orders from 2.5K-3K
Orders from 3K-5K
Orders from 5K-10K
Orders above 10k
After segmenting, we were able to see the real picture where maximum people were converted.
So, here we can see our AOV lies around 1K-1.5K, 1.5K-2K and 3K-5K.
After finding out the real picture we went ahead with the WHY factor to it-
Our Shopify AOV was at INR 3250, and after doing the analysis we have understood our sweet spot lies somewhere else where the maximum number of orders were ranging from 1K-2K
What did we do after uncovering these hidden insight?
To capitalize on this insight, we strategically implemented offers such as
Additionally, introducing new products priced at INR 2000 and above, which later proved to be effective.
Results-
20% increase in Conversion Rate (CR%) and
35% boost in overall orders.
While the immediate impact on AOV may not be striking, but the daily increments were telling a compelling story.
Hypothesis
For a jewelry brand going through ups and downs in sales, launching a new product or collection at just the right time can be a total game-changer. It’s like giving the brand a fresh start. By carefully planning when to introduce the new jewelry and how to talk about it, the brand creates excitement and gets people talking.
We have observed that often times a jewelry brand works on a two peak business model, which means the business thrives on two particular period during the year which is also the right time to scale the business. However as marketers we must strategize to make the brand perform during non-peak period as well and help create multiple peaks.
On a particular brand we have observed that such two peak periods are Valentines Day and Festive Season. However we have analyzed that launching new collections other than these two peak season has helped us create more such peaks for the business
Results-
Launching our new jewelry collection has been fantastic, and the results are amazing. More people are buying our jewelry, and they really like what we’re offering. It’s not just about selling – our customers are coming back because they love what we have. The launch has also brought in new customers and made our brand more popular.
Lets deep dive more into the data-
1. Comparing the ROAS before the New collection launch and after the launch
ROAS
Before- 1.03
After- 2.09
20% Increase in ROAS
2. Comparing the CAC before the New collection launch and after the launch
CAC
Before- 1500
After- 1300
15% decrease in CAC
3. Comparing the orders before the New collection launch and after the launch
Orders
Before- 160
After- 210
31.25% increase in orders
The new jewelry collection launch has done wonders for us! More people are buying our jewelry, and they really like it. Plus, the launch brought in new customers, making our brand stand out as a cool and innovative choice. So, looking at the data, it’s clear that a new launch at the right time can make a brand more loved and successful.
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