In this sponsored advertorial, Australian retailer Hats by the Hundred reveals how they won Father’s Day this year with help from marketing agency Shout Digital.
Over the recent Father’s Day campaign – traditionally the business’s strongest seasonal trading period – Hats by the Hundred’s (HBTH) sales grew by 18 per cent YOY following a renewed approach to SEO and paid media under the stewardship of Shout Digital.
Business owner Andrew Lygo who’s been at the helm of the company his father started 40 years ago for the past two decades, says he’s not seen growth figures peak like that since pre-Covid.
“The whole retail sector has experienced, and continues to experience, a very turbulent time. There’s been the pandemic, the cost of living crisis and the changing nature of our industry where brands – many of which we distribute – have started to change their own sales strategies.
“However, one of the ways we’ve managed to keep our lid on is by reviewing our digital marketing activity. We’ve been online since 1996 and had largely managed it inhouse but at the beginning of this year we felt it was time to lean on an expert to really get the most out of our spend. It can feel like a big investment for a small business – but we’re pleased the returns are proving it was the right call.”
Shout CEO Michael Jenkins says that HBTH was seeking to recover recent sales losses – compounded by a switch in e-commerce software late last year and changing distributor terms – and to shift firmly into growth mode.
“Andrew was keen to get the business really growing again and first year success for our partnership looked like an overall conversion rate of 2.1 per cent of online traffic to sales, a ROAS (Return on Ad Spend) of 10 per cent and actual sales performance growth of 10 per cent year on year.”
During the month of August – just ahead of Father’s day – Shout’s management of SEO and Paid Search delivered results worth tipping one’s hat at.
“The business’s top three organic search keywords had improved in performance by 178 per cent (YOY). Online revenue for the month of August increased dramatically – up by 87 per cent YOY. While advertising spend for Father’s Day also increased, the return on the ad spend (ROAS) for the campaign was a whopping 760 per cent.
“Across the board, we were happy to report an all channel e-commerce traffic conversion rate increase of 28 per cent, from a base of 1.1 per cent this time last year to 3.15 per cent – firmly exceeding the macro KPIs,” says Jenkins.
“We’re looking forward to helping HBTH sustain that growth as we head into the summer months and festive gifting period before we assess the total returns at the 12 month mark.”
Headquartered in Southport, Queensland, with a further five retail operation and an e-commerce platform that drives 20 per cent of business, HBTY (trading as part of Spectrum Online Pty Ltd) has proved the right fit for a nation of sun lovers and shade seekers and is now the largest specialty hat retailer in the country. It sells 65 brands – including its own 28° Eastern and GC Caps – with more than 4,500 different styles on offer, and reached a 1M milestone of sales in 2022.
“We draw 30 per cent of our online trade from offshore, with customers from both the Middle East and Africa who have a lot of respect for the Australian design credentials because they know we make hats that can stand up to the heat,” adds Lygo.
“Having buyers from Madagascar and the UAE is a great endorsement for our brands and the brands we distribute – many of which are still locally made.
“With this international customer base, we focus our digital marketing resources according to the seasons. For June-August we’re marketing overseas and focusing on the Australasian market the rest of the time. It’s always hot somewhere!”.
Andrew says with Shout his company now commits around 50 per cent of its digital budget on SEO to improve organic reach and the other half on targeted paid spend with ad words.
“What we’ve learned over time is that the platforms – Google, Meta etc – are always changing their algorithms, which can significantly impact our reach. So, we wanted an agency that had deep experience to ensure we’re not wasting our money and would give us a great level of service – even though we are a small business.”
Shout’s Jenkins, says his 100 per cent remote business is well suited to SME enterprises businesses wanting to access expert advice on digital marketing, even if they don’t have big budgets.
“We’ve specifically set our business model up to assist SMES – and the range of business sizes we assist varies greatly. We have low overheads due to our remote model, which has also attracted senior staff, who are very experienced. They love the work life balance compared to past roles and we love the smarts they bring.
“And, of course, our clients love the fact they can access top notch talent within their marketing budget. We can achieve results for clients spending as little as $1,500 a month and we’re currently helping many retail clients ensure they’re optimally performing ahead of BFCM (Black Friday Cyber Monday) and the festive gifting season. What do they say? If the hat fits…”
For more information on Hats by the Hundred’s manufacturing and sales capabilities visit: www.hatsbythe100.com.au
For more information on Shout digital’s SME marketing visit: www.shoutdigital.com.au