From Conversion Drop to Surging Profit: Gokimco’s Growth Strategy

Kimco is a proficient supplier of ESD Safe equipment and soldering products for industries and hobbyists. Kimco started its venture in 1978 by supplying NE Ohio PCB assembly houses. Over these 30 years, Kimco has developed the latest technology for PCB assembly and repair. The experience and legacy have made Kimco one of the top-sought suppliers of quality electronic products in North America.  

Image logo Gokimco

 Since its inception, Kimco has closely monitored the market trends and needs to provide services and solutions that could create an epoch. Challenges came throughout the journey. Understanding the market needs and reaching out to the target audience was necessary to leap ahead in the race. 

Imbibing innovative ideas and implementing digital tactics were the verified solutions. But, the managerial challenges and cost-effective implementations were the roadblocks Kimco faced during the optimization process. 

Managerial Challenges

Revenue data and metrics are crucial to track the conversion rate. It was important for Kimco to know how efficiently paid-ads were performing to drive traffic and conversion. Calculating the return on ad spend (ROAS) was a benchmark methodology to analyze which marketing channel made convertible traffic and the weaker areas that need improvement. 

A woman in a white T-shirt explaining a growth rate chart

Image by Tumisu from Pixabay 

Balancing the investment and increasing the return rate on paid-ads (ROAS) was one of the challenges the company faced. The cost per conversion metric determines the success of paid searches. Kimco invested a large amount of money in paid ad services. But the conversion rate never hit a break. There was no scalable outcome to remark success. The investment rate and return rate were proportional to each other.

Though traffic increased, there was no measurable profit hike that could outshine the invested ad cost value. Digital marketing innovations helped to expand the popularity of the brand. But a solution was needed to increase traffic and conversion rate. Boosting the ROAS turned out to be the sole problem.   

Solutions Offered

Increasing the ROAS rate and monitoring the invested money needs a robust package that could design a layout focusing on the weak areas. eComIntegrate suggested search engine optimization as the accurate solutions needed to increase the ROAS rate. 

Product content optimization, keyword optimization, and creating google shopping ads were the recommended solutions to increase the return rate on ad spent.

End Result

Conversion/cost rate graph in %

The implementation of the suggested solutions brought desirable results. There was an overall change in Kimco's revenue cycle. Proper managerial solutions helped to identify the unwanted expenditure, thus increasing the profit margin. 

Growth comparison graphs 2019 & 2020 in %

Optimization of the product content, keywords, and redirecting the shopping ads helped to increase the conversion rate over the cost spend on advertisements. Comparing the 2019 cost metric data to that of 2020, there was an increase of 235.24% in conversion rate, and a 13 % profit in the ad spent. 

Conclusion 

Kimco Corp has implemented suggested strategies to improve conversion rates. Accurate identification of draining revenue helped eComIntegrate Digital Consultancy to frame customized solutions to upgrade the profit range. As a result, a tremendous hike in revenue was achieved through the rightful optimization process. Kimco has now attained growth stability compared to the conversion metrics of 2019.

Want to see better conversions from your e-stores as well? Contact us now! 

 

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