European Retailer Achieves 13 Week High for Profit and Site Visits

European Retailer Achieves 13 Week High for Profit and Site Visits

CLIENT WIN:

A European online department store heavily promoted a mid-season sale through email marketing and an increase in paid search. Promoting diverse products spanning Home, Garden, Fashion, Electronics, Toys and more, the retailer focused on well-stocked items owned and held in accessible warehouses, that drove revenue but not at the expense of profit.  This laser-focus on products from local warehouses allowed the retailer to reduce levels of held stock, mitigating inventory risk during the early weeks of the European COVID-19 crisis.  

This retailer has experienced a halo benefit by selling products that are in high demand across Europe, encouraging customers to continue to shop with them even while uncertainty driven by the COVID-19 crisis was at its peak.

STRATEGY:

  • Surgically reduce inventory using real-time in-depth understanding of stock location and levels
  • Optimize profit by considering product margin, promotional cost and marketing spend

TACTICS:

  • Mid-season sale offering in-demand products
  • Focused Increase in paid search spend
  • Strictly tailor promotion to include well stocked, easily accessible inventory

RESULTS:

  • 23% WoW increase in orders placed
  • 20% WoW increase of value of orders
  • 13% WoW increase in site visits, reaching a 13-week high
  • Reduced Summer 2020 stock from 8 to 4 weeks 
  • 41% uplift in profit during this period, a 13-week high for the business

DYNAMIC ACTIONS:

  • DynamicAction’s Custom Dashboards enabled the team to quickly identify products and product categories that would be effective for the upcoming promotion
  • DynamicAction’s Dimensional Analysis connects Product, Inventory, Marketing, and Customer Data Sources
    • The platform allowed the retailer to efficiently leverage multiple data points, including the warehouse location data needed to make these decisions
    • The analysis revealed that the affiliate channel would be the most effective marketing channel to bring the right customer in for the promotion