Hanna Andersson_final.indd

GOOGLE ADWORDS SUCCESS PROFILE
Comfy Kids
Children’s clothing company Hanna Andersson used Google
AdWords to generate $6.8 million in revenue in 2006.
Sweden, meet Portland
Who they are
www.hannaandersson.com
Portland, Oregon
200 employees
Offline and online
Soft, high-quality clothes for kids
and families
What they needed
• To drive traffic to their website
• To grow their customer base
• To build relationships with returning
customers
• To send customers to their growing
network of stores
What they did
• Began with Google AdWords in 2004
• Used conversion tracking to improve
their campaigns
• Created campaigns based on
specific themes, holidays,
and seasons
• Tracked which keywords brought in
new and returning visitors
• Ran reports to gather data about
multiple types of conversions
What they accomplished
• New and returning customers:
Increased site traffic by 300% and
sales by 150% from the 2005
holiday season to the same period
in 2006
• Increased revenue: In 2006, drove
approximately $6.8 million in gross
sales through AdWords
• New business focus: Now conduct
the majority of their direct business
online
In the early 1980s, Portland resident and Swedish
transplant Gun Denhart had a son and faced a
dilemma: how to dress him in the clothes she
remembered from her childhood. “I couldn’t find
beautiful quality pure cotton baby clothes like
those I’d known in Sweden,” Gun explains, “so
I began bringing back cotton knits each time
I visited.” Her American friends oohhed and
ahhed over the soft, durable materials, perfect for
coddling babies’ sensitive skin. They began to ask
how they could track down similar clothes.
That was the proverbial spark. Gun and her husband Tom traveled to Sweden,
worked with suppliers there, and produced their first catalog in 1983. Returning
to Portland, they set up an office in their garage and started sending it out. Gun
named the new company Hanna Andersson after her grandmother, who taught
her the Swedish tradition of picking out quality fabrics and making them last.
Not long after, the Denharts stopped importing clothes and began manufacturing
their own.
Eventually, Hanna Andersson moved out of Gun’s garage and into its new
headquarters in Portland’s Pearl District. The company is now a booming online,
catalog, and in-store retail business. It has expanded into men’s and women’s
clothes and opened 17 stores across the United States. Throughout its growth,
Hannah Andersson has not strayed from Gun’s original vision. Quality and comfort
are essential: all items are designed to withstand wear and tear. “We have a saying
around here: let kids be kids,” says Alison Polenz, vice president of marketing.
“So you’ll find that the clothing is highly functional and very age-appropriate.”
Testing the waters
As the company grew, the Hanna Andersson team needed to extend their
marketing efforts beyond catalog prospecting. “We experimented with a few
magazine spots but weren’t sure how effective they were,” Alison recalls.
“Unlike catalogs, you can’t measure the results and justify spend.” So, in late
2004, they decided to venture into the world of online advertising with a Google
AdWords™ account.
First, they “toe-dipped,” says Erica Racette, online analyst and merchant for
Hanna Andersson, running a few campaigns with 500 keywords and a $50 daily
budget. Encouraged by the results, Erica and her team began devoting more time
and resources to the account in 2006.
Erica set up distinct campaigns for each product category, as well as for each
high-potential holiday and season. “We created very specific ad groups and wrote
targeted copy,” Erica continues. “We also expanded our keyword lists, running
on as many as 3,000 search terms during the holidays.” In the ad text, Erica
highlights any compelling offers, such as fast delivery during the holiday season
and the company’s twice-yearly sale. “Whenever possible, the ads take customers
to the most relevant page on the Hanna Andersson website, so shopping is easier
and the purchase process is faster.”
GOOGLE ADWORDS SUCCESS PROFILE
About Google AdWords
Google AdWords™ is a performancebased advertising program that enables
businesses large and small to advertise
on Google and its network of partner
websites. Hundreds of thousands of
businesses worldwide use AdWords for
text, image, and video ads priced on
a cost-per-click (CPC) and cost-perimpression (CPM) basis. Built on an
auction-based system, AdWords is a
highly quantifiable and cost-effective
way to reach potential customers.
For more information, visit
http://adwords.google.com.
Erica also makes frequent changes to the account’s keywords, ads, and budget.
“The flexibility is what’s so great,” she says. “If something doesn’t work you can
immediately make adjustments. It’s not like putting something in a magazine
– that’s permanent; you can’t undo it.” The work has paid off: traffic during the
holiday season increased 300 percent from October-December 2005 to the same
period in 2006, while sales increased 150 percent.
Keep on tracking
The Hanna Andersson team noticed a number of similarities between AdWords
and their traditional catalog activities. “Being a catalog business historically,
we’re very used to being able to track and measure and monitor,” Erica explains.
“AdWords allowed us to try a whole new approach to reaching out to
customers in a way that we felt comfortable with because we were
still able to track and monitor.” Erica Racette, online analyst and
merchant, Hanna Andersson
“AdWords allowed us to try a whole new approach to reaching out to customers
in a way that we felt comfortable with because we were still able to track and
monitor – but in real time.”
Erica uses conversion tracking within the Hanna Andersson account to track
several different types of conversions: catalog requests, purchases by new or
returning customers, and the success of each individual keyword. “When someone
comes through Google, we can match it up with our customer files, so we can
identify if a certain keyword is bringing in new customers or returning customers,”
says Erica. “All the data we gather has encouraged us – and senior management
– to continue embracing this type of advertising.”
A comfortable future
Today, Hanna Andersson conducts the majority of its direct business online, using
Google AdWords to improve brand recognition and acquire new customers. The
program has become more effective over time. In 2006, Hanna Andersson reaped
about $6.8 million in gross sales through AdWords.
As they look to the future, the Hanna Andersson team plans to use new AdWords
features such as local business ads to continue expanding both their online
business and their growing network of stores. “As we open more retail stores,
we’ll use local search to drive more traffic to the stores and advertise in-store
promotions,” Erica predicts. “Going forward, we plan to use AdWords as a key part
of our marketing efforts.”
While Gun and Tom no longer oversee Hanna Andersson’s daily operations, they
live right across the street from company headquarters and keep a watchful eye
over their brainchild. What they once described as the “best little children’s
catalog ever” has grown into a thriving online and offline business as well as a
household name, giving Sweden a run for its money.
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