adlucent case study: wasserstrom year over year growth

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Building a Relevant and Profitable Strategy Wasserstrom selected to work with Adlucent in June 2010. They were looking for a partner who could help them profitably grow their revenue from paid search using a strategy that aligned with their specific business model and goals. Wasserstrom has two primary customer segments: their corporate customers who have established accounts with Wasserstrom and tend to be reoccurring customers with large order volumes, and their “public” customers who are the primary targets of their PPC advertising. Aligning these unique targeting goals with Adlucent’s advertising efforts has been a key part of the relationship. Wasserstrom first launched with only paid search text ads and quickly added Google Display Network advertising. After two years of growth and developing a strong relationship, Wasserstrom tasked Adlucent with adding and developing their Product Listing Ads (PLA) program in anticipation of the end of free Google Shopping advertisements. Achieving 102% Year-over-Year Growth Adlucent has been able to drive triple-digit year-over-year revenue growth for Wasserstrom while maintaining a consistent cost of sale. Through year two, average year-over-year revenue growth was 102%. Year three is off to a very positive start with near 50% growth in revenue over year two. About Wasserstrom The Wasserstrom Company, which began as a local, family-run business, has steadily grown to become one of the largest restaurant suppliers and distributors of foodservice products. Wasserstrom carries one of the most diverse and comprehensive product lines in the foodservice industry, offering products such as dinnerware, storage items, kitchen and cooking supplies, bakery equipment, catering supplies, and custom fabricated stainless products. With more than a century of experience and a team of over 1,200 dedicated associates, Wasserstrom remains a family-owned and operated company offering unparalleled products and services. PROFITABLE GROWTH, YEAR OVER YEAR Google Shopping Key New Tool Driving Non-Brand Performance CASE STUDY : WASSERSTROM YEAR 1 YEAR 2 YEAR 3

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Case Study: Profitable Growth Year over Year Achieving growth at a profitable level year over year in paid search can be tricky for some retailers. An Adlucent client since 2010 discusses their success in achieving steady revenue growth at a consistent or even decreasing cost of sale. www.adlucent.com

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Page 1: Adlucent Case Study: Wasserstrom Year over Year Growth

Building a Relevant and Profitable Strategy Wasserstrom selected to work with Adlucent in June 2010. They were looking for a partner who could help them profitably grow their revenue from paid search using a strategy that aligned with their specific business model and goals.

Wasserstrom has two primary customer segments: their corporate customers who have established

accounts with Wasserstrom and tend to be reoccurring customers with large order volumes, and their “public” customers who are the primary targets of their PPC advertising. Aligning these unique targeting goals with Adlucent’s advertising efforts has been a key part of the relationship.

Wasserstrom first launched with only paid search text ads and quickly added Google Display Network advertising. After two years of growth and developing a strong relationship, Wasserstrom tasked Adlucent with adding and developing their Product Listing Ads (PLA) program in anticipation of the end of free Google Shopping advertisements.

Achieving 102% Year-over-Year GrowthAdlucent has been able to drive triple-digit year-over-year revenue growth for Wasserstrom while maintaining a consistent cost of sale. Through year two, average year-over-year revenue growth was 102%. Year three is off to a very positive start with near 50% growth in revenue over year two.

About WasserstromThe Wasserstrom Company, which began as a local, family-run business, has steadily grown to become one of the largest restaurant suppliers and distributors of foodservice products. Wasserstrom carries one of the most diverse and comprehensive product lines in the foodservice industry, offering products such as dinnerware, storage items, kitchen and cooking supplies, bakery equipment, catering supplies, and custom fabricated stainless products. With more than a century of experience and a team of over 1,200 dedicated associates, Wasserstrom remains a family-owned and operated company offering unparalleled products and services.

PROFITABLE GROWTH, YEAR OVER YEARGoogle Shopping Key New Tool Driving Non-Brand Performance

C A S E S T U D Y : W A S S E R S T R O M

YEAR 1 YEAR 2 YEAR 3

Page 2: Adlucent Case Study: Wasserstrom Year over Year Growth

Key Contributing Factors to their Success • Alignment of goals. Given the two different—yet important—customer segments that Wasserstrom caters to, Adlucent had to take full advantage of their flexible technological architecture to develop appropriate account management and reporting schemes that revolved around Wasserstrom’s objectives. This has allowed Adlucent to drive targeted revenue growth and understand performance of different creatives, bid management tactics and keyword trends within these different customer segments.

The results? Adlucent has driven 81% year-over-year growth of the “public” revenue—revenue driven primarily through non-brand channels. PLAs have been key to this growth in 2012, thus have become a greater place of investment for Wasserstrom. On average, Wasserstrom’s PLAs have garnered subustantially higher average CTRs (136%) and CVRs (118%) versus non-brand text ads.

• Eliminated waste throughout accounts. Adlucent’s performance-based compensation incentivizes the company to not only increase total revenue, but to constantly monitor and identify inefficiencies and direct those resources to more efficient uses. Adlucent also utilizes micro-segmentation of products and performance data, which allows account teams to understand account trends and quickly adjust their massive portfolios of keywords to capitalize on new opportunities.

Key waste-eliminating tactics utilized include a focus on using exact-match while closely monitoring broader-match keywords, fast search query analysis to best understand consumer intent and quickly identify and negate non-revenue driving terms, and then daily bid optimization to ensure keywords are maintained at their optimal positions.

• Finding the right messaging that resonates with target customers. Adlucent has leveraged three key messaging activities to attract new customers and increase conversion and AOV, including: close alignment with Wasserstrom’s merchandising calendar, promotion and content testing in ads and structured landing page tests.

Extending the Value of Demand IntelligenceThe consumer demand data and analysis collected by Adlucent is regularly shared with Wasserstrom and is used to determine future promotions, messaging efforts and merchandising decisions. This amplified level of sharing and feedback has led to a strong relationship between Wasserstrom and Adlucent and years of sustainable revenue growth.

Contact UsFor more information give us a call at 800.788.9152, email us at [email protected] or visit us at adlucent.com/resources/ExpertPLA/

136% CTRs

118% CVRsVersus non-brand text ads

Versus non-brand text ads

The PLA Phenomenon