LEVELNINE - Finch Client since 2016
Using MER to guide long-time client through the 2022 market
How a Utah-based sporting goods supplier effectively navigated the uncertainty and challenges of the 2022 eCommerce market by maintaining profitable MER.
Outdoor Sporting Goods
Key Result6.6 MER
in down eCommerce market
Level Nine Sports is committed to providing quality goods and top-notch customer service at the lowest prices anywhere. With the most knowledgeable team of avid skiers, snowboarders, and bikers, they are confident that L9 Sports is the absolute best place to outfit your family with high-quality ski, snowboard, and bike equipment.
How to determine the RIGHT marketing strategy for profit.
2022 was a challenging year in eCommerce as consumers began to conserve money in preparation for an oncoming recession. Our challenge was to steady the revenue ship for our clients in this uncertain environment.
With a distrust of campaign data, Level9 needed a higher fidelity picture of both business and performance metrics to make better profit decisions. A shift to Media Efficiency Ratio (MER) started to become a more accurate barometer of success.
The Finch Solution
Finch merged business-level data and marketing data to create a more accurate picture - across both MER and Net CPV.
The plan involved a deep dive into L9's business-level profitability:
- Rebuilt the L9 product feed, including hundreds of thousands of SKUs
- Surfaced the most profitable in-stock SKUs to focus spend
- Calibrated media spend based on Net CPV to pace with actual sales
"Finch improved our existing Google and Bing search campaigns greatly and helped us expand into Amazon advertising. With the addition of Facebook in the past year, we have also seen growth in that realm and hope to lean more into social going forward.”
Finch and L9 managed to maintain YoY sales from 2021 to 2022 despite tougher economic market circumstances. By understanding the key business-level metrics, we were able to determine how aggressive we could get. MER was higher in 2021 than 2022 (7.6 vs. 6.6), but because we were tracking it, we knew how much of it could be sacrificed in order to maximize sales in the new environment of 2022.
Maintained stable YoY sales in a year of recession fears
Tied business growth to marketing spend
Reduced ACoS by 10%
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