Client Overview
Industry: E-commerce retail, operating exclusively on Shopify.
Background: The client faced a complex challenge with various shipping costs, differing product margins, and fluctuating campaign CPA, necessitating a unique approach to marketing campaign optimization.
Challenge
Problem: With factors like product margins, country-specific shipping costs, and varying campaign CPA influencing actual profit, traditional ROI measurements were insufficient. The client sought a more nuanced approach to optimize actual profit.
Impact: The inability to accurately gauge profit across diverse products and regions led to inefficiencies and missed opportunities.
Solution
Approach: Developed a marketing campaign optimization system that factored in unique profit determinants.
Implementation: The system adjusted campaign spending based on real-time data, including product margins, shipping costs, and actual CPA. This focus on profit optimization provided a more accurate marketing strategy.
Benefits: The client could target campaigns effectively, aligning spending with profit potential.
Results
Profit Increase: Achieved a 17% increase in profit by aligning campaigns with actual profit potential.
Efficiency Gains: Reduced wasted ad spend by 10%, increasing overall profitability.
Strategic Insight: Gained insights into profit drivers, enabling more informed marketing decisions.