Online grocery brand rings up growth and protects margin with Tradeswell
As this online grocery brand was looking to enter the market against giants, they turned to the Tradeswell AI to boost growth without increasing ad spend.
To boost sales growth without increasing ad spend.
Even before the pandemic, a growing number of consumers were placing their grocery orders online. During the pandemic, online grocery delivery and pickup has become the norm for many. Grocery is a competitive market, with giants like Amazon, Walmart, and Target dominating sales of the approximately $38 billion market.
The approach & insights
In order to boost sales, the Tradeswell platform recommended running online advertising campaigns targeting non-branded search behavior, the goal of which is to acquire new customers with a potential of lifetime sales. ROAS for such campaigns is misleading because it doesn’t measure the impact to total sales. The brand needed to measure both sales and profit margin trends as opposed to just add efficiency metrics like ROAS.
In addition, prior to the campaign launch, we curated branded campaigns with high average selling price (ASP) and profitable ASINs (Amazon Standard Identification Number – its version of a SKU) to protect branded search and drive profitable sales.
By leveraging the Tradeswell algorithms, the brand was able to meet all of its aims including:
92% increase in top-line growth
1% growth in net margin
Top-line sales and profit increased while utilizing the same budget previously given to an ad agency.
The brand will continue to recalibrate their search advertising strategy based on holistic business performance, and look to spin up a customer acquisition strategy (targeting shoppers higher in the funnel) based on Tradeswell’s Customer Lifetime Value reporting.