Identifying and Capitalizing on Drivers of Profitable Growth
The rapid growth of e-commerce is increasingly benefitting sectors that traditionally market their products from physical showrooms – such as furniture. Indeed, a recent McKinsey survey found that 60% of American consumers expected to purchase furniture online after COVID-19 compared to 46% before the pandemic, the largest jump in percentage-point terms from 20 sectors surveyed.
Read this case study of how a furniture manufacturer that had been selling high-quality, ready-to-assemble furniture through e-commerce channels such as Amazon, Overstock, and Wayfair for several years saw periods of strong sales from the outset but lacked the tools to understand what was working and why. It understood that it needed a single source of truth for customer, sales, and operational data – and called on CommerceIQ to provide such a solution.
Challenges
- No visibility into predictive drivers: The company was unable to effectively track important predictors of profitable growth, such as Share of Voice (SOV), unit conversion, consumer demand forecasts, and predicted out of stock
- Inability to analyze trends: If there was a lift in sales, there was no way for the teams to analyze trends to see what was happening and how they could capitalize
- Too many manual actions: Without automated tools, the team was wasting countless hours researching sales drops, suppressed ASINs, lost Buy Box opportunities, and other problems typical of selling on e-commerce
Solution
- CIQ Unified, combining CIQ Sales and CIQ Advertising
Results
- 30% Improvement in advertising cost of sales (ACoS)
- 20% Y-o-Y increase in incremental revenue
- 25% Improvement in Share of Voice
Download the Case Study to Read More.