Cheap as Chips: Serving up a digital storefront

Image showing a cheap as chips store front

Who is the client?

Cheap as Chips is an Australian-owned and operated chain of variety stores. They stand out from typical discount department stores by offering quality products sourced both locally and globally at great prices. As they put it, they are “cheap in price, not quality”.

We (SLAM Strategy) partnered with them on their ambitious journey to become Australia’s number one variety store retailer.

We used our commission-based pay-for-performance model to better align with their goals for growth and profitability in their stores.

What was their problem?

Cheap as Chips came to us with a clear and ambitious goal. To become the number one variety store retailer in Australia. They came to us wanting to do just that.

Despite having a strong brand, they faced a perception problem in the wider market. Their biggest problem was overcoming the ‘cheap’ stereotype (hard to do when it forms part of your brand name). They needed to prove to a national audience that they could compete directly with retail giants like ALDI, Target and Kmart on not only price but quality too.

They were struggling to communicate the value of their products. The name ‘Cheap as Chips’ while memorable often left to misconceptions about product quality. They needed to show customers that their promise of "cheap in price, not in quality" was a genuine reality, not just a catchy slogan.

What we did

Cheap as Chips gave us a significant advertising budget which allowed us to allocate funds strategically across the entire customer journey and sales funnel, from initial brand awareness to final conversion.

This approach was important to help us achieve their goal of competing with the retail giants in the same space.

Google Ads

We launched a Google Shopping campaign to put their diverse product catalogue in front of millions of potential customers. We needed to transform their brick and mortar store product options into a digital shopfront.

As part of the national roll out of Cheap as Chips stores we advertised in advance of stores opening to not only drive online sales but also build brand awareness in advance of the store openings, to ensure a ready supply of demand and brand recognition was there prior to opening day.

The growth in online sales also helped with providing the much needed capital funding for further physical store expansion.

In addition to the Google Shopping and Search Ads, we also started a remarketing campaign which allowed us to re-engage with users who had previously visited the website. This helps us to guide them back to completing a purchase and enabled us to maximise our return on investment.

The challenges

The main challenge for us was the budget. While it was substantial, it was limited when we tried to scale the campaign. If we had had more budget, we would have been able to scale the organisation further and generate a lot more for them.

We also faced logistical issues and outside forces outside of our control that affected the success of the campaign. The nature of the products Cheap as Chips sold, particularly with returns and an Australia-wide delivery network, presented unique operational hurdles.

The results

On average for the year, we delivered a 1,400% Return on Ad Spend, a clear indicator of the campaign’s profitability and efficiency.

The success of the campaign was driven by a 1,834% increase in the number of clicks, which showed our ability to attract a massive volume of qualified traffic. This translated directly into a significant 149% increase in conversion value and a 3,164% increase in total conversions compared to the previous year. This firmly positioned Cheap as Chips as a dominant force in the discount variety online retail space.

Conclusion

The partnership with Cheap as Chips was an exercise to transform their brand perception and achieve their goal of competing with the likes of Kmart in the online retail space.

With their primary challenge being to overcome the “cheap” stereotype, we used a comprehensive Google Ads strategy to strategically allocate the budget across all stages of the sales funnel.

While we did face external challenges and limitations, our focus remained on driving profitable growth.

The campaign delivered some epic results and the success achieved not only unlocked Cheap as Chips' potential, but solidified Cheap as Chips as a dominant force in the online variety retail space.

Cheap as Chips: Serving up a digital storefront

Who is the client?

What was their problem?

Their needs

What we did

Google Ads

The challenges

The results

Conclusion

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Partner with us
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Cheap as Chips: Serving up a digital storefront

Who is the client?

What was their problem?

Their needs

What we did

Google Ads

The challenges

The results

Conclusion

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Partner with us to do great things

Partner with us
to do great things