PPC Case Study. Maximising the Commercial Potential of Seasonal Promotions


MR PORTER asked Forward3D to help build an optimisation strategy to increase the efficiency of the brand’s US PPC activity during a crucial promotional period.

 

Our Objective

 

The USA developed into a key market for MR PORTER as the brand experienced a significant growth in their North American customer base. Paid acquisition channels have been core to the expansion strategy, as the brand looks to make further inroads into the market and win share in a highly competitive segment of the retail market. 

 

As a luxury retailer, MR PORTER holds only two promotional periods each year. It becomes crucial to get the marketing activity right during these periods to ensure it derives maximum value. Even the promotional periods themselves are complex, consisting of multiple offers, interspersed with periods of full pricing, creating a fast-moving environment to strategize for.

 

The combination of a short duration, a high intensity and the level of regional significance, meant that it was crucial for our campaign to deliver. With a previous focus on driving maximum revenue, our strategy evolved into prioritising efficiencies and maximising the net ROI. 

 

The move towards margin-based profit instead of revenue resulted in a total 17% increase in profit over the quarter. 

 

Key Achievements

 

Using a ‘full price’ versus ‘sale’ differentiated methodology, we generated impressive growth figures and maximised the efficiency of the media budget. We transformed PPC activity from losing money during sales, to breaking even, without making any sacrifices in revenue. 

 

The move towards margin-based profit instead of revenue resulted in a 13% YoY increase in profit for full price promotional phases and a total 17% increase in profit over the quarter. For the sale phases we returned a 74% decrease in cost for a 65% increase in revenue which helped achieve our targeted ROI of 1. 

 

The sale period returned a 44% YoY growth in revenue, a 31% increase in orders and a 15% surge in new buyers from an important market. 

 

Having seen this tactic perform so effectively in the US for the summer sale period, the strategy was then rolled out and applied to campaigns across all global regions for the Christmas promotional period. 

 

 


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