FEATURED CASE STUDY/ RATCHOOX

Unleashing the Power of Strategy: How We

Supercharged a Brand's Inventory and Marketing Game!

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Increase in Sales
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Increase in CVR
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Decrease in CPA

Problem

At the start of the collaboration, the brand faced several challenges. It struggled to generate the desired net profit, lacked funds to purchase sufficient inventory to fulfill demand, and had scattered business metrics. The brand offered multiple products with 10+ variations for each, leading to issues in inventory management. And let’s not forget, they had no maximum cost per acquisition defined, their marketing and procurement strategy was vaguer than a ghost in a fog and made meager profits since 2016.

Solution

But never fear, because we came in with our Markets Dominion tools and developed a roadmap for this brand to follow. To get more profit flowing in, we divided their products into sections based on performance and implemented a smart reorder schedule based on business capacity. We prioritized their best-selling variations and used the profits to reinvest in marketing and growth for the other variations. We even developed a parameter sheet to keep all their KPIs in check and help them make better financial decisions. And to combat the seasonality of some products, we split their PPC management structure into two parts: on-season and off-season targeting. We got really nerdy with ad reports to identify the best-selling variations and picked targeted products based on the statistics to boost conversions.

Outcome

The implemented solutions led to significant results. Within the first six months, the team improved conversion percentages with listing optimization and better image design. They discontinued non-profitable products and reduced excessive ad spend on products that had already reached their maximum growth potential. PPC restructuring and focusing on highly relevant search terms with less competition helped reduce cost per click, and the team dominated the niche with banner ads. Monthly PPC sales increased from £930 in July 2021 to £10,857 in July 2022. Conversion percentages on top keywords increased from 6% to 17%, and the cost per acquisition reduced from £4 to £0.9. The brand owner launched another brand, and both brands are expected to grow until they can be flipped for seven figures.