Retail Industry | MR. DG ~ Pay Per Click (PPC)

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Saskatchewan Retail Industry

MR. DG asked ELNCO to help build an optimization strategy to increase the efficiency of the brand’s Local PPC activity during a crucial promotional period.

Achieved a Click Through Rate of 0.09% generating a number of new sales
In the first month of activity the Cost Per Action was reduced by 20%
Return on Investment of 272%
Social shares by network

0.11% CTR

35% less CPA

448% ROI

Our objective

Saskatchewan is a key market for MR. DG and their brand competitor experienced significant growth in their local customer base. Paid acquisition channels have been core to the expansion strategy, as the brand looks to make further growth expansion into the market and win share in a highly competitive segment of the retail market.

As a luxury retailer, MR DG launches only two promotional periods each year. It becomes critical to get the marketing activity right through these periods to ensure it derives the highest value. Even the promotional periods themselves are complicated, consisting of various offers, interspersed with periods of full pricing, forming a fast-moving environment to strategize for.

ELNCO applied a dynamically innovative digital media engine that enables users to be retargeted based on the product they viewed last and spent the most time viewing. That was accomplished by introducing a contextual campaign to increase reach by showing prospective audiences the current, and most popular product. In addition to that, we employed daily and lifetime frequency caps distinct to each user in order to prevent overexposure.

The mixture of a short span, a high intensity and the level of territorial consequence, determined that it was critical for our campaign to deliver. With a previous focus on driving maximum revenue, our strategy evolved into prioritizing efficiencies and maximizing the net ROI and avoid over-targeting existing visitors.

Key achievements

Using a ‘full price’ versus ‘sale’ differentiated methodology, we generated impressive growth figures and maximized the effectiveness of the media budget. We remodeled PPC activity from losing money during sales to breaking even, without offering any reductions in revenue.

The transit towards margin-based profit rather of revenue resulted in a 13% YoY boost in profit for full price promotional phases moreover a total 17% jump in profit over the quarter. For the sale periods, we yielded a 74% decrease in cost for a 65% increase in revenue which helped reach our targeted ROI of 1.

The sale period delivered a 44% YoY growth in revenue, a 31% increase in purchases and a 15% surge in new buyers from a primary market.

Having seen this tactic perform so efficiently in Saskatchewan for the summer sale season, the strategy was then rolled out and implemented to campaigns across all local sites for the Christmas promotional period.

Summary Results

A highly optimized and granular paid search strategy allowed Mr. DG to make significant growth into the Saskatchewan market through leveraging existing search demand for their DG brands.

To maximize the brand’s dual promotional periods of the year, it was essential that paid search activity accounted for the differences in profitability between full and reduced prices.

Traditional approaches to paid search optimization make use of historical campaign data to inform future decisions and strategy. The nature of Mr. DG’s promotional periods meant that efficient, on-the-fly optimization was required to ensure a successful campaign.

Through a short shift in strategy towards margin-based profit instead of revenue and validation from the returned profit and revenue growth figures, ELNCO was able to develop a strategic framework for future use across MR. DG’s historical sale periods.

Retail Industry ~ From The Client

“ELNCO’ve achieved a Click Through Rate (CTR) of 0.11%, that generated many new sales. In the campaign’s inaugural month of activity, the Cost Per Action (CPA) was reduced by 35%, surpassing the client’s target. February 2015 observed post-click revenue – (generated by both dynamic retargeting and the prospecting campaign) – present a Return on Investment (ROI) of 448%.” MR. DG | Saskatchewan Retail Industry Client

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