Background
Hey Dude Shoes started in 2008 out of a desire to see comfortable, lightweight, stylish and yet still affordable shoes become the standard, not the exception, for how you treat your feet. The company makes a wide variety of slip-on shoes made with a breathable fabric, making the shoes extremely lightweight and versatile. The company’s emphasis on free 3-day shipping and their wide range of styles has made them a top choice for consumers looking for cost-effective footwear.
Key Metrics
$7M
In Additional Revenue Per Month
3x
Increase in Return-On-Ad-Spend
90,000
Additional Conversions Per Month
“Logical Position has done an amazing job in managing our Google Ads! As the Digital Marketing Manager, I manage various channels of advertising and LP has saved us a lot of time on managing our day-to-day strategy. They have helped us reach our ROAS goals, maintain consistent, clear communication with us on a weekly basis, and are very responsive whenever we need their help!”
– Steven Yu, Digital Marketing Manager at Hey Dude Shoes
Why’d They Come to LP?
Hey Dude Shoes had been running a fully automated pay-per-click (PPC) campaign prior to working with Logical Position. This tactic appeared to be cheaper on the surface, but wasted ad-spend budget due to insufficient audience targeting. Hey Dude decided to turn to an experienced agency to harness the performance data. The company had already been seeing a 4.5x return on their paid search campaigns on their own, so our initial goal was to achieve at least a 4x account-wide return for Hey Dude Shoes.
What Strategy Was Used?
With our account goals established, our paid search team got Hey Dude Shoes on our in-house data feed service, FeedLogic. This allowed us to clean up Hey Dude’s product feed and optimize the feed to perform better on Google Shopping. Since Hey Dude has a large product inventory, FeedLogic made the most sense so that our team could constantly monitor the feed to make sure everything is running smoothly—product disapprovals are common and can be hard to catch; our team has processes in place to fix issues in a timely manner.
Next, we segmented our shopping campaigns into Branded and Non-Branded, meaning we separated consumers specifically searching for “Hey Dude Shoes” from generic queries for similar lifestyle comfort shoes in their category. This helped us increase efficiency in our branded campaigns; segmenting them separately let us set lower bids on those products which decreased overall cost.
Once our paid search ads started generating traffic, we were able to construct audiences to remarket to. We created Display campaigns and used our remarketing audiences to show ads to consumers who had browsed the Hey Dude Shoes website, but hadn’t made a purchase. We used these same audiences to create unique YouTube ads to show potential customers, which created an additional pathway for conversions. To ensure we were always showcasing the latest shoe styles, we updated our Display and YouTube ads quarterly with fresh content. This also kept potential customers from getting fatigued from our ads—there was always something new to see on the website.
What Were the Results
During our partnership, Hey Dude Shoes has increased their ad spend by over $900,000. This has given our team lots of freedom to experiment with different strategies, and ensures our campaigns are never limited by budget. When they started with us, Hey Dude was seeing around $250,000 per month in revenue from paid search—now they’re seeing over $7 million per month. In November 2018, they had 4,000 paid search conversions—by March 2021, we increased that number to 96,000.
Hey Dude’s ROAS was already at a 4.5x when they started with us—a solid return, by any definition, and a tall order to beat. We’ve increased their ROAS to a 7.62x—meaning they’re seeing $7.62 back for every $1 spent on advertising. Thanks to our analysis and guidance on search trends, we’ve also helped Hey Dude identify new categories of shoes to create, such as hiking shoes, water shoes, and work shoes.
Try slipping on a partnership with LP when you’re ready for a change!
