Case Study: Salud Mediterránea
Case Study: Salud Mediterránea
Making Online Sales Profitable and Attracting New Customers to Physical Stores
CONTEXT
Salud Mediterránea is a herbalist company with over 30 years of experience in the industry. They operate three physical stores in Madrid (Chueca, Manuel Becerra, and Atocha) and an online store with nationwide shipping.
The company stands out for offering top-quality products at competitive prices. In addition to selling products from well-known brands, they also have their own high-quality private label line, Árbol Verde.
THE CHALLENGE
The Salud Mediterránea team hired Fáktica with two objectives in mind. First, they wanted to increase online store sales. Additionally, they aimed to attract more visitors to their Madrid stores through enhanced online presence, both organically and through advertising.
The herbalist industry is highly competitive online. Salud Mediterránea competes with competitors willing to make substantial investments in online advertising and offer products at competitive prices to gain market share and outpace the competition.
Salud Mediterránea is a herbalist company with over 30 years of experience in the industry. They operate three physical stores in Madrid (Chueca, Manuel Becerra, and Atocha) and an online store with nationwide shipping.
The company stands out for offering top-quality products at competitive prices. In addition to selling products from well-known brands, they also have their own high-quality private label line, Árbol Verde.
THE CHALLENGE
The Salud Mediterránea team hired Fáktica with two objectives in mind. First, they wanted to increase online store sales. Additionally, they aimed to attract more visitors to their Madrid stores through enhanced online presence, both organically and through advertising.
The herbalist industry is highly competitive online. Salud Mediterránea competes with competitors willing to make substantial investments in online advertising and offer products at competitive prices to gain market share and outpace the competition.
The key to our strategy:
aligning marketing goals with those of Salud Mediterránea.
Objective: Increase Salud Mediterránea's Profits
With the goal of boosting sales both in physical stores and online without compromising profitability, Salud Mediterránea faces competition from large companies willing to operate with slim margins to scale. For this reason, we established that the key success indicators for our strategy would be sustained growth in both sales and profits.
Attracting New Customers to the Madrid Stores
We designed a series of campaigns on Google Ads and Facebook Ads that maximized Salud Mediterránea’s ability to sell both in physical stores and online.
To attract new customers to the stores, we created Google Search campaigns that generated different ads for Salud Mediterránea’s inventory of 3,500 products. These ads only appear to people living near one of the stores and include information about the searched product and the nearest store. Additionally, they automatically update the product price and only appear when the price is competitive.
Furthermore, we employed geolocated ads for generic searches in the vicinity of the stores. Fáktica’s technology ensures that the investment in these ads is directed at users with the highest likelihood of visiting the store.
In just two months, online advertising was already attracting hundreds of new customers to Salud Mediterránea’s stores each month.
Increasing Online Sales while Enhancing Profitability
Our technology creates Google Shopping campaigns that optimize not for revenue or ROAS (as Google Ads typically offers) but for maximizing the profit in Salud Mediterránea’s bottom line.
This technology allows us to communicate the costs of purchase, shipping, and transaction to Google Ads. As a result, the optimization algorithms prioritize the sale of products with higher margins and lower advertising costs, maximizing Salud Mediterránea’s profits on each order.
Website Personalization and Conversion Rate Optimization
Based on our recommendations, Salud Mediterránea made significant changes to its website, including template, structure, icons, and messaging, to improve the conversion rate.
Additionally, we implemented website personalization technology based on the behavior and profile of each visitor.
Fáktica also proposed several changes to enhance the SEO positioning of the page.
Visibility into the Financial Performance of Advertising
We created a dashboard that not only displays operational data (orders, sales, advertising costs) but also the profitability of advertising in the profit and loss statement. The dashboard provides information on sales, purchase costs, shipping, and transaction costs for the products sold. It also estimates sales generated by new visitors to physical stores. Using this data, it allows us to determine the monthly profit generated by online advertising.
In this way, we ensure that online marketing investments are aligned with the financial and growth objectives of Salud Mediterránea.
The key to our strategy:
aligning marketing goals with those of Salud Mediterránea.
Objective: Increase Salud Mediterránea's Profits
Attracting New Customers to the Madrid Stores
We designed a series of campaigns on Google Ads and Facebook Ads that maximized Salud Mediterránea’s ability to sell both in physical stores and online.
To attract new customers to the stores, we created Google Search campaigns that generated different ads for Salud Mediterránea’s inventory of 3,500 products. These ads only appear to people living near one of the stores and include information about the searched product and the nearest store. Additionally, they automatically update the product price and only appear when the price is competitive.
Furthermore, we employed geolocated ads for generic searches in the vicinity of the stores. Fáktica’s technology ensures that the investment in these ads is directed at users with the highest likelihood of visiting the store.
In just two months, online advertising was already attracting hundreds of new customers to Salud Mediterránea’s stores each month.
Increasing Online Sales while Enhancing Profitability
Our technology creates Google Shopping campaigns that optimize not for revenue or ROAS (as Google Ads typically offers) but for maximizing the profit in Salud Mediterránea’s bottom line.
This technology allows us to communicate the costs of purchase, shipping, and transaction to Google Ads. As a result, the optimization algorithms prioritize the sale of products with higher margins and lower advertising costs, maximizing Salud Mediterránea’s profits on each order.
Website Personalization and Conversion Rate Optimization
Based on our recommendations, Salud Mediterránea made significant changes to its website, including template, structure, icons, and messaging, to improve the conversion rate.
Additionally, we implemented website personalization technology based on the behavior and profile of each visitor.
Fáktica also proposed several changes to enhance the SEO positioning of the page.
Visibility into the Financial Performance of Advertising
We created a dashboard that not only displays operational data (orders, sales, advertising costs) but also the profitability of advertising in the profit and loss statement. The dashboard provides information on sales, purchase costs, shipping, and transaction costs for the products sold. It also estimates sales generated by new visitors to physical stores. Using this data, it allows us to determine the monthly profit generated by online advertising.
In this way, we ensure that online marketing investments are aligned with the financial and growth objectives of Salud Mediterránea.
Results
Results
- After a year of collaboration, Salud Mediterránea managed to increase online store sales by 126%.
- The online advertising campaigns attracted 350 – 400 new customers to the Madrid stores each month.
- Salud Mediterránea’s profits associated with online sales increased by 88% during this period.