In less than 20 years, contact lens technology has
dramatically changed the business. Today people have a wide range of
choices, including disposables (daily, weekly, monthly), permeables,
toric and vial lenses – even a range of colors. After the occasional
eye exam and prescription, contact lens wearers are free to buy multiple
pairs as extras or replacements – and they are doing so in great
numbers online. This means online retailers like VisionDirect (and its
related sites, LensSmart.com and 1StopContacts.com) attract a large
volume international business, and can offer a selection of two million
lenses, one-day turnaround, guaranteed low prices, plus extras like
free shipping and frequent buyer points.
Based in Vancouver, B.C., today VisionDirect is the contact lens replacement
supplier for online pharmacy Drugstore.com, which acquired the company
late in 2003.
| "We
have doubled our gross revenue year after year. Google has been,
and will be, the most important piece of our customer acquisition
strategy." |
Challenge
When VisionDirect began shipping orders in
1999, says Steven Holmes, director of online marketing for VisionDirect,
there was little competition for online buyers. Today, the challenge
is to stand out in an increasingly crowded field of sellers. And, Holmes
says, the ongoing quest for business is twofold: to find a steady stream
of new buyers, and to retain repeat customers. VisionDirect began using
Google keyword advertising to help with both starting in 2000. Leaving
no opportunity untried, Holmes also used ad banners, other keyword ad
programs, paid inclusion in major portals, and affiliate marketing.
Results
Holmes believes in developing Google AdWords™
campaigns, watching their performance, and adjusting them over time
as customers respond. Two years ago, he ran ads on an "exhaustive" list
of keywords – about 4,000 of them. Today, he's edited that list
but has added campaigns for countries and currencies besides the U.S.
(Canada, U.K., and the Euro). By offering a huge selection and one-day
delivery, VisionDirect cares about retaining customers. This approach
has paid off well. In the fourth quarter of 2003, Holmes reports overall
site conversion of 12 to 13 percent – and credits Google with the
lion's share, 9.6 percent, through AdWords. Further, he notes that average
sale per order is $5 greater on Google than on another keyword ad program.
Holmes also describes AdWords account management as being "much more
reliable" than another program he uses. "The reports are better. They're
easier and faster to run, and the top-line summaries are very useful."
As his company's marketing focus has shifted, Holmes says, he's narrowed
his marketing options down to a few affiliate marketing programs plus
keyword advertising. "Everything else is too expensive – and we
get a much higher rate of return from our keyword ads," he adds. Looking
back, Holmes remembers "packing orders on top of our washing machine.
We didn't spend money outsourcing in the beginning." As a result, the
company has remained profitable during a turbulent period for e-commerce.
This slow-but-steady build has worked well, Holmes observes. "We have
doubled our gross revenue year after year. Google has been, and will
be, the most important piece of our customer acquisition strategy."
About Google Advertising
Google AdWords is currently used by
thousands of businesses worldwide
to gain new customers in a cost-effective
way. AdWords uses keywords to precisely target
ad delivery to web users seeking information about a particular product
or service. The program is based on cost-per-click (CPC) pricing, so
advertisers only pay when an ad is clicked on. Advertisers can take
advantage of an extremely broad distribution network, and choose the
level of support and spending appropriate for their business. For more
information, go to www.google.com/ads.