In this episode of the Grow With Evergreen podcast, we met John-Paul, the founder of Build4Less, an online building materials company.
With a turnover of £15 million and over 90,000 products on their website, Build4Less has become a significant player in the UK’s e-commerce construction industry.
However, like many businesses in the building sector, in the current economic climate they’re facing challenges in maintaining growth.
Here are some of the key insights from our conversation.
The Build4Less group
Build4inLess operates four distinct brands:
1. Insulation4less (insulation-focused)
2. Build4Less (comprehensive building supplies)
3. Tiles4Less (tiling products)
4. Building Supplies Online (acquired two years ago)
This diversified approach has allowed them to capture different segments of the construction market, from DIY enthusiasts to professional builders.
Navigating economic challenges
The current economic landscape presents several challenges for e-commerce businesses:
– Increasing cost per acquisition
– Rising competition
– Economic uncertainty due to upcoming elections
– Seasonal fluctuations in the construction industry
Despite these challenges, Build4Less has maintained a strong position in the market. John Paul attributes this to their focus on sustainable growth and a diversified marketing strategy.
Current marketing strategy breakdown
Build4Less employs a multi-faceted marketing approach:
1. Google Ads (90% of ad spend): A mix of Performance Max, standard shopping, and search campaigns.
2. Email Marketing: 30-40 newsletters per week across their brands.
3. Retargeting: Standalone campaigns outside of Performance Max.
4. Organic Search: A significant portion of their traffic comes from organic sources.
John-Paul emphasised the importance of maintaining a healthy Return on Ad Spend (ROAS) across all campaigns. They aim for a ROAS of around 15, which is impressive in the current competitive landscape.
Key drivers for e-commerce success
1. Diversify your marketing channels: Don’t rely too heavily on a single channel. Build for Less balances paid ads, email marketing, and organic search.
2. Focus on sustainable growth: Avoid the temptation to grow at any cost. Ensure your campaigns are profitable and don’t compromise on ROAS for the sake of market share.
3. Adapt to platform changes: Stay informed about changes in advertising platforms. For example, Build4Less has successfully transitioned to Performance Max campaigns while still maintaining some standard shopping campaigns.
4. Play the long game: In a competitive market, some new entrants may use unsustainable practices to gain market share. Focus on your business’s health and wait out the competition.
5. Continuously Optimise: Regularly review and adjust your campaigns to maintain performance as market conditions change.
6. Consider omnichannel retargeting: While Build4Less currently focuses on Google Ads, there may be untapped potential in platforms like Facebook and Instagram for retargeting and brand awareness.
Looking to the Future
Despite the current economic challenges, Build4Less aims to grow its turnover to £20 million by the end of next year. This ambitious goal is backed by their proven strategy of sustainable growth, diversified marketing, and a focus on profitability.
For other e-commerce businesses facing similar challenges, the Build for Less story offers valuable lessons in resilience, adaptability, and strategic growth. By focusing on a balanced marketing approach and maintaining strong ROAS, it’s possible to thrive even in a highly competitive and uncertain market.
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