Our own case study
Cleanawater case study
We purchased a business to demonstrate the power of growth marketing. The end result? Revenue growth of 1266% and a sale generating a 10x ROI.
The key case study results
During a very busy five years – with many late nights, plenty of great memories and two factory moves – our achievements included:
Revenue growth
Profitability growth
Equity growth
What was our plan?
We wanted to show what SMEs could achieve with digital, and in particular growth marketing. We decided to purchase an SME and build it into a successful enterprise with a digital strategy at the core.
What were our objectives?
Business type
Industry vertical
Gain competitive advantage
Capture marketshare
Digital pure play
Increase brand value
The business purchased: Cleanawater
Cleanawater specialises in the design, manufacture, installation and servicing of commercial and industrial water treatment and recycling equipment
Why did we choose Cleanawater?
We purchased Cleanawater because it ticked all of the right boxes
Establish business
Cleanawater was an established business that had been in operations for 15 years.
Quality products
The business has an established history of developing quality water treatment products.
Small digital footprint
The company’s minimal digital investment provided a baseline to test our strategy.
Aligned with our budget
With $350k in capital, Cleanawater’s $150k price left room for working capital and growth investment.
Overcoming our challenges
What obstacles did we face to make Cleanawater a success?
No industry experience
With no prior experience in the water treatment industry, we faced a steep learning curve, needing to quickly acquire technical expertise and industry knowledge.
Limited working capital
With just over $200,000 in working capital, every element of our digital strategy had to deliver ROI, especially in a capital-intensive business requiring significant investment in product R&D.
Water authority approvals
To meet our growth targets, we needed water authority approvals in each state—a process that could take 18-24 months, including extensive testing.
New Manufacturing and Supply Chain Processes
The existing manufacturing and supply chain were designed for small orders. To stay competitive at larger volumes, we needed a complete overhaul.
Research & Development investment
Product development was essential. Improving current products would strengthen our competitive edge, while new offerings would unlock additional market opportunities.
What was the digital strategy?
Here are some of the key growth marketing initiatives we implemented over the five-year period.
Enhancing brand value
Focused on website development, enhancing user experience, optimising conversion rates, and refining brand identity.
Demand capture
Implemented search engine marketing (SEM) and search engine optimisation (SEO) strategies to capture and convert high-intent users.
Optimising the buying journey
Leveraged display marketing for brand awareness and retargeting to guide users through the buying journey.
Data & Business Intelligence
Utilised data analytics and business intelligence to inform decisions and optimize performance across all digital channels.
Key growth marketing insights
Large companies and governments source supplies online
Over the course of 5 years, our clients included:
- 3 federal departments
- Over 30 local councils
- Some of Australia’s largest companies
Design creates a stronger value proposition
Our average transaction yields increased by 293.3%. As we invested in digital assets, we strengthened our value proposition, enabling us to compete on value instead of price.
Users value high-quality information
We built a document center featuring product brochures, site layouts, specifications, and manuals:
- Over 7% of our visitors downloaded a PDF
- New inquiries were generated from shared documents
- Helped capture more users at the top of the buying funnel
Relevance drives conversions
By creating industry-specific content, we increased customer relevance:
- Over 15% of user conversion paths included industry-specific pages
- It boosted sales conversions by increasing industry authority and relevance
Data provided a competitive advantage
Data and business intelligence gave us key advantages including;
- Identified the most profitable market segments, helping us maximize market share
- Allowed us to reverse-engineer the roadmap to achieve our business goals
Business sale
After five years, the time was right to sell the business. In doing so, we would demonstrate our final objective: Using digital to generate equity growth.
The sale process
We set an ambitious 3-month timeline for the sale. With a data-driven growth plan and the expertise of Lloyds Business Brokers, we were confident of success.
The outcome
In just 3 months, with 67 inquiries and 5 offers, Cleanawater was sold, delivering a 10x return on our original investment.
Case study results
In the media
The unique nature of the case study attracted industry attention, capturing interest from various media outlets. Its innovative, data-driven strategy and impressive performance results highlighted the transformative power of digital in a traditionally offline sector, resonating strongly with readers and industry professionals alike.
Industry recognition
In 2017, EngineRoom became state finalists in the Telstra Business Awards, thanks in part to the success of our Cleanawater case study. This recognition also reflected our commitment to applying similar data-driven strategies to help our clients achieve their own growth objectives.
The story
Cleanawater 2010 / 11 financial year
The story begins out in Blackburn, in a small 60m2 factory that we shared with a mechanic.
Milestones
- Purchased 50% of the business
- New website designed and launched
Cleanawater 2011 / 12 financial year
With growth now over 398% it was time to move out on our own. The next location was a 250m2 factory in Thomastown.
Milestones
- Purchased the remaining 50% of the business
- Moved to our second factory in Thomastown
Cleanawater 2012 / 13 financial year
Bigger customers brings bigger jobs and so it was time to move again, this time to a newly developed 1200m2 factory.
Milestones
- Growth has reached over 821%
- We win our first 40ft containerised water recycling job
Digital360 launch May 2013
A great evening with 120 guests at a picturesque art gallery in the heart of South Melbourne. As part of the night we shared the top 10 most powerful digital insights from the Cleanawater case study.
Cleanawater 2013 / 14 financial year
With growth now over 1127% we were gaining industry recognition and winning work from new market sectors.
Milestones
- Water authority approval gained nation-wide
- Our new website and branding is launched
Cleanawater 2014 / 15 financial year
With growth now over 1266% the case study was coming to a conclusion.
Milestones
- Exports generate over 8% of our revenue
- New leads increase to over 30 per week
Cleanawater 2015 / 16 financial year
A 3 month sale process that involved 67 enquiries and 3 offers.
Milestones
- Sale completed by the September 30, 2015
- Sale generated a 10X ROI on purchase price