Case Studies/
Boutique Rugs

Retail & Products

How Boutique Rugs Increased Revenue By 59%

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Background

Boutique Rugs is an online source for beautiful handwoven and machine-woven rugs of all sizes and shapes. The company sells a wide variety of rug sizes, colors, and designs—truly offering something for everyone. The company prides itself on first contact resolution within 24 hours when a customer has an issue, making Boutique Rugs the obvious choice for consumers nationwide looking to spruce up their homes. In recent years, Boutique Rugs has exploded in popularity, thanks to their superb customer service and wide selection of inventory.

Key Metrics

Boutique Rugs - Key Metric 1

50%

Increase in Assisted Conversions

Boutique Rugs - Key Metric 2

52%

Increase in Transactions

Boutique Rugs - Key Metric 3

9%

Increase in Total Market Share in the Rug Industry

Why did They Come to LP?

The Boutique Rugs marketing team had been running Google Ads on their own, but they were running into challenges with the way the account was set up. Their product feed kept having their products get disapproved, and Boutique Rugs was struggling to figure out how to get their feed up and running properly. Boutique Rugs realized they needed the guidance of an agency for help with the pay-per-click (PPC) efforts, which is how the partnership with Logical Position (LP) began.

During our initial intake call with Boutique Rugs, we took inventory of the competitive landscape in the area-rug market and set goals around the available market share we could capture. They needed a 3x return-on-ad-spend (ROAS) to make the campaign pencil. From there we developed an acquisition strategy focused on their target audience.

So About That Strategy You Mentioned?

Next, we built the campaigns with Single Keyword Ad Groups (SKAGs) and Single Product Ad Groups (SPAGs) to give more control on bid levels and budgets. This type of campaign segmentation allows our team to make granular adjustments quickly, which in turn, optimized the ad spend the most efficiently.

From there, we created unique YouTube ads to drive brand reinforcement, and put a large budget behind it in order to cast a wide net to draw in customers at the top of the sales funnel. With a consumer item like area rugs in a time when customers were forced to spend more time at home, driving home the visual aspects was critical to gaining online conversions. To maximize budget efficiency, we surveyed viewers to gauge interest and adjust ad spend accordingly. This made sure we were continuing to evolve with the campaign and adjust to market changes. The video ads also serve to lift the brand as an additional touch point along a consumer’s conversion path.

Logical Position is a Google Premier Partner—which means we’re able to get our clients involved in new programs and features before they’re released to the general public.

Case Study - Boutique Rugs

We have access to certain features that are only available to Premier Partner agencies, and are frequently involved in beta testing new ways of advertising.

A current feature we are beta testing is the use of Discovery Campaigns. This product from Google uses a three-pronged approach to advertising to help with brand reinforcement—when we heard about the program, we knew Boutique Rugs would be perfect for it. Using this campaign, Boutique Rugs’ ads show up on the YouTube homepage, in Gmail’s promotions and social tabs, and on the Google app. The ads are highly visual and give consumers a personalized ad experience—the perfect thing to drive brand awareness. Plus, these ads allow our team to advertise in a way that other companies aren’t able to yet, which helps us gain an edge in the oversaturated home goods market.

So Tell Me About the Results…

In the past 6 months, Boutique Rugs saw $9 million in revenue from our paid search efforts, equating to a 59% increase in revenue for a total of over 46,000 conversions. Since working with LP, Boutique Rugs’ transactions have increased by 52%. We’ve also met Boutique Rugs’ goal of earning a 3x ROAS, meaning they saw $3 back for every $1 they spent on paid search—thereby tripling Boutique Rugs’ profits!

The beauty of using a pay-per-click advertising strategy is that it tends to have a halo effect—as our paid search campaigns for Boutique Rugs scaled, the company was able to see a greater impact across all of their digital marketing channels—their assisted conversions from paid search (meaning that paid search played a role indirectly in a sale) has increased by 50%. Paid search is boosting traffic to Boutique Rugs’ website so much that other touch points across the internet are able to convert at a higher rate—new users on the website have risen by 350,000 in 6 months time.

Case Study - Boutique Rugs

And we didn’t forget how important it was to the company to capture a larger percentage of market share. Our team keeps a close eye on Google’s Search Auction Insights report and how much of the Search Impression Share Boutique Rugs is capturing. When our partnership began, Ali, the company’s CEO, was capturing 12% of the rug market—we’ve been able to increase that to 21% in just 6 months, all from our paid search efforts.

LP’s partnership with Boutique Rugs has been exemplary for the level of trust we have together. Ali acknowledged when we first began working together that the partnership is a learning process, and he has trusted us enough to try experimental strategies that have helped the account grow. Ali is willing to let us test out different things—like the Discovery Campaigns—and he knows that we’re always going to make the best decisions for his account.

This is what a true partnership looks like.

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