Rakuten Advertising maximizes Backcountry’s profitability with Skai’s Signal Enhancement
Performance data
gross margin dollars lift
total revenue lift
Sales volume and EBITDA lift
Challenge
While driving revenue is a constant priority for Backcountry, they were challenged by their board of directors to maximize profitability. As marketing channels are set up to drive revenue and not necessarily profitability, this new initiative meant shifting focus to additional KPIs beyond cost per revenue (CPR) such as cost per gross margin dollar (CPGM$) and gross margin dollars (GM$) .
Solution
Backcountry teamed up with Rakuten Advertising and Skai to achieve its business objectives. Together they implemented Skai’s Signal Enhancement solution against Backcountry’s Google Shopping campaigns. Upon setup they fed GM$ as the conversion value for the purchase conversion action. By using COGS, they were able to set Smart Bidding targets managed according to their target CPGM$ in order to achieve sales with stronger profit margin.
Results
- By managing bid portfolio strategies to a target CPGM$, Backcountry was able to drive proportionally higher sales volume against more profitable conversions, as measured by the GM% lift of 8%. Ultimately this resulted in EBITDA gains from Google Shopping and total revenue was 8% more profitable.
- Skai’s Signal Enhancement tool allowed Backcountry and Rakuten Advertising to elevate data-based optimization to improve profitability while driving strong sales volume.
“Skai’s Signal Enhancement tool allowed Backcountry and Rakuten Advertising to elevate data-based optimization to improve profitability while driving strong sales volume, ultimately resulting in EBITDA gains.”
Briana Rittersporn, Senior Account Manager
About Rakuten Advertising
Brands and agencies worldwide choose Rakuten Advertising for unparalleled expertise and distinctive marketing solutions that influence and activate audiences across the many paths and platforms of their digital journeys.
About Backcountry
Backcountry is the premier online specialty retailer of outdoor gear for snow sports, hiking, camping, paddling, biking, climbing, fly fishing, and more, including a wide selection of premium apparel, both technical and casual. Backcountry’s mission is to connect people to their passions by supplying customers with the gear, knowledge, and inspiration necessary to chase down life’s greatest moments. Backcountry does this by providing the biggest and best assortment of premium outdoor products, personalized Gearhead expertise, inspirational content, a superior shopping experience, and lightning-fast fulfillment. The Backcountry family of companies includes Competitive Cyclist, MotoSport.com, Steep&Cheap, and Bergfreunde.de, which is based in Germany.
Solution Used
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