Wasserstrom Achieves Long-term Profitable Growth through Adlucent
AUSTIN, Texas, Feb. 6, 2013 /PRNewswire/ — Adlucent today announced that the Wasserstrom Company, one of the largest restaurant suppliers and distributors of foodservice products, has achieved sustained profitable growth, year over year, through its partnership with Adlucent. By uniquely targeting Wasserstrom’s corporate and “public” segments, Adlucent has been able to drive triple-digit year-over-year revenue growth for Wasserstrom while maintaining a consistent cost of sale. Through year two, average year-over-year revenue growth was 102%, and year three is off to a very positive start with nearly 50% growth in revenue over year two.
Most recently, Wasserstrom tasked Adlucent with launching and managing their Product Listing Ads (PLA) program. PLAs have been key to Wasserstrom’s 81% year-over-year growth of their “public” revenue–revenue driven primary through non-brand channels. Wasserstrom’s PLAs have garnered substantially higher average CTRs (136%) and CVRs (118%) versus non-brand text ads.
“Adlucent is a true partner in our business,” said Dale Edman, Vice President of eCommerce & Online Marketing at Wasserstrom. “They are committed to delivering the retail strategy and technical innovation that we need to succeed in a complicated landscape that is changing by the minute. From paid search through display and PLAs, they are ahead of the major developments that are driving marketing – and retail – forward.”
Relevant and Profitable Strategy Drives 102 % Year-Over-Year Growth
Wasserstrom has two primary customer segments: their corporate customers who have established accounts with Wasserstrom and tend to be recurring customers with large order volumes, and their “public” customers who are the primary targets of their PPC advertising.
Wasserstrom turned to Adlucent in June 2010 to profitably grow revenue from paid search using a strategy that matched the company’s specific business model and goals. Aligning these unique targeting goals with Adlucent’s advertising efforts, Wasserstrom first launched with paid search text ads and quickly added Google Display Network advertising. After two years of growth and developing a strong relationship, Adlucent added and developed a Product Listing Ads (PLA) program for the company. Highlights include:
- Alignment of goals. Given the two different–yet important–customer segments that Wasserstrom caters to, Adlucent had to take full advantage of their flexible technological architecture to develop appropriate account management and reporting schemes that revolved around Wasserstrom’s objectives. This has allowed Adlucent to drive targeted revenue growth and understand performance of different creatives, bid management tactics and keyword trends within these different customer segments.
- Elimination of waste throughout accounts. Adlucent’s performance-based compensation incentivizes the company to not only increase total revenue, but to constantly monitor and identify inefficiencies and direct those resources to more efficient uses. Adlucent also utilizes micro-segmentation of products and performance data, which allows account teams to understand account trends and quickly adjust their massive portfolios of keywords to capitalize on new opportunities. Key waste eliminating tactics utilized include a focus on using exact-match while closely monitoring broader-match keywords, fast search query analysis to best understand consumer intent and quickly identify and negate non-revenue driving terms, as well as daily bid optimization to ensure keywords are maintained at their optimal positions.
- Finding the right messaging that resonates with target customers. Adlucent has leveraged three key messaging activities to attract new customers and increase conversion and AOV, including: close alignment with Wasserstrom’s merchandising calendar, promotion and content testing in ads, and structured landing page tests.
“Wasserstrom is an example of a smart and nimble retailer who is thriving in today’s cutthroat online world,” said Michael Griffin, CEO of Adlucent. “They have a deep understanding of their customer base and market, allowing them to quickly capitalize on new profit-rich advertising opportunities. The result is a data-driven, high-value program that meets objectives – and consistently outperforms expectations year after year.”
Adlucent is a marketing technology and analytics agency based in Austin, Texas, focusing solely on retail and eCommerce companies. Leveraging its Deep Search® search marketing and retail analytics platform, Adlucent’s experts help the smartest retailers acquire new customers and grow revenue profitably through digital marketing. Expanding from a decade-long relationship with Amazon.com, Adlucent’s current client base includes retail brands such as Oriental Trading Company, Harry & David, Jewelry Television, and Free People.