The following case study features an omnichannel retailer that leveraged the ChannelAdvisor Managed Services team to grow its digital marketing and in-store revenue — with a strong return on ad spend.
THE CLIENTÂ
The world of e-commerce is rapidly evolving — and this ChannelAdvisor customer decided to evolve with it.Â
This specialty retailer is an IR Top 1000 company that tossed the old playbook long ago and built its brand reputation on a unique store concept, attracting consumers across a diverse demographic. From trendy brick-and-mortar locations to a strong online presence, it continued to transform, staying ahead of market trends and avoiding common retail business pitfalls. To outpace its competition in the changing e-commerce landscape, this multimillion-dollar company used an omnichannel approach to future-proof its business and achieve success both online and offline. Looking to increase its digital revenue and boost its return on ad spend (ROAS), it turned to ChannelAdvisor. What the seller discovered was a tailored solution that aligned well with its business goals and its bold determination to win the e-commerce race.
THE CHALLENGE
Retail is littered with cautionary tales of missed opportunities. In this case, the seller discovered it was missing out on the buying potential of omnichannel shoppers, a credit-card-ready and digitally savvy group who spend significantly more than in-store-only purchasers. While foot traffic to its stores remained the primary driver of sales revenue, the retailer was willing to pivot for a stronger consumer connection and increased profitability.Â
First, it would need a sophisticated digital marketing strategy that could deliver results without eroding margins and avoid hurting its critical store footprint. Raising brand awareness and building brand loyalty through advertising and targeted campaigns would come at a price. As an e-commerce retailer, keeping that expense in check created the need for deeper data insights into its customers’ search habits and buying patterns. If it wanted to leverage key growth drivers, this innovative retailer’s next step demanded the power to track conversions and the ability to constantly create efficiencies in its paid search programs.
THE CHANNELADVISOR SOLUTION
The company’s new approach to attract (and keep) omnichannel shoppers proved to be too complex for the seller’s in-house team, making the decision to partner with ChannelAdvisor an easy one. Backed by a robust platform and extensive e-commerce experience, ChannelAdvisor’s team of experts tackled the challenges head-on, focusing on three digital marketing tools: local inventory ads (LIA), a merchant hosted local storefront and Google’s Smart Bidding.Â
Local Inventory Ads
- By using local inventory ads, the specialty retailer targeted online shoppers searching for convenience and products that were available at nearby stores within walking distance or a short drive from the consumer’s location. Following ChannelAdvisor’s expert guidance, the seller amplified its LIAs during promotional events and sale periods, helping to drive sales and in-store visits.Â
Merchant Hosted Local Storefront
- To support its Buy Online, Pick Up in Store capabilities (BOPIS), ChannelAdvisor opted for a merchant-hosted local storefront to help drive consumers directly to the seller’s website. This move gave the retailer the ability to monitor and control the consumer’s entire shopping experience. Tracking conversions was an added benefit, helping the company make more informed advertising decisions to save money and redirect resources when needed.
Smart Bidding & In-Store Visits
- To help online advertising drive better offline results, the specialty retailer turned to machine learning and leveraged Google’s Smart Bidding to optimize for in-store visits while simultaneously capturing online sales. This allowed the ChannelAdvisor customer to optimize online and offline in less time.
THE RESULT
In less than a year, the company’s new digital marketing strategy — powered by ChannelAdvisor automation — was an e-commerce win, helping drive digital and omnichannel revenue growth.
- Achieved digital revenue growth goals at a strong 4.5:1 ROAS.
- During that same period, it achieved over 26% omnichannel revenue growth at nearly an 8:1 omni-ROAS.
The ChannelAdvisor team worked closely with Google to identify solutions that fit perfectly with the customer’s core business strategy. Never afraid to use out-of-the-box solutions to address complex challenges, the specialty retailer’s account management team carefully balanced its innovative approach with well-researched and proven methods that had delivered results for other strategic customers.Â
The automation of ads and keywords alone wasn’t the only success driver. Through multiple touchpoints with the client, including onsite visits, ChannelAdvisor was immersed in the retailer’s performance goals from the start. This collaborative relationship helped the customer understand and apply real data and actionable analytics to its strategic mission for stronger results.
“From top to bottom, we strive for excellence,” explained one ChannelAdvisor team member. “A key factor in this particular seller’s success was the work behind the scenes each day at ChannelAdvisor: the analytics, the daily reports and consistent collaboration. It’s our mission to make e-commerce easier for our customers. It’s great to see our team effort pay off for the client.”
