LocalBuy Case Study

The Starting Point

LocalBuy is a government procurement organisation in Queensland. They had been operating for 20 years when I joined in June 2021, and were about to launch a new initiative “Active Arrangements” in August to increase supplier numbers on their contracts. This particular business line is a membership-based SaaS.

They had never had a marketing team before and had a dysfunctional website that clients frequently complained about. They had a quote to update their website for over $80k. They had 3,047 suppliers on their contracts, with an annual supplier/client value of $3,007.

I was hired with the goal to establish the marketing team, grow their business, and as an additional bonus, to build a new functional website.

The Process

Having an extremely tight deadline before the new initiative launched, I first had to build the foundations. I designed, built and deployed a website for the initiative within my first month at the company and was able to start on a customer acquisition strategy. 

With significant resistance to change, initially I was unable to remove unprofitable and costly ads in local papers or any digital marketing related to Google. 

Focusing on social media ads and with a new website that focused on UX, we were able to gain significant traction in the first quarter and maintain that momentum throughout the year while also building the marketing team.

The Results

The feedback on the new website was outstanding and greatly contributed to the success of the new initiative, with an average conversion rate of 11.2%.

Over the first 5 quarters, we were able to successfully acquire 1,572 new suppliers. With the annual supplier value at $3,007, that was an increase in revenue of $4,726,560.*

With a marketing spend of $40,232, our cost per acquisition was $26.33 and our ROAS was 10,123%.

* Actual figure unknown/undisclosed, however, it was confirmed this initiative reached and exceeded targets.

 

The Next Steps

Now having data to analyse, and also being successful in removing the costs for print media and allowance for search engine marketing, I was able to create a strategy that would generate even better results for the coming year without increasing the marketing ad spend. 

This strategy was prepared in March of 2022, and shows that with a budget of $32,161 focused on digital media, LocalBuy should be able to attract an additional 3,356 new suppliers each year. 

In a year, this would mean increasing the client base yet again by another 73% and an additional increase in annual recurring revenue of over $10m, resulting in a ROAS of 31,378%