Utilising customer data, we transformed Kathmandu's Winter Sale media approach, optimising for real time consumer, weather, and conversion data to exponentially grow sales.
Challenge.
Traditionally Kathmandu has been known as the "Briscoes" of the outdoor retail category, a problem Kathmandu has been on a mission to fix by becoming a desirable brand for millennials.
However, sales targets were not adjusted to reflect the shift in advertising focus towards the brand, so we had to make our sales budget work harder than ever to deliver an increase in revenue target.
- To deliver against the longer-term brand-building ambitions we had 23% less media budget to deliver an 18% increase in revenue target
- This was against the context of rising inflation and increasing competition
Solution.
We analysed 1.2m customers, over 5.4m shopping transactions and over 20 website data points that led to the creation of our optimisation model, KM3, that fused customer, weather and conversion data to exponentially grow sales.
KM3 became the engine for our entire approach, orchestrating bidding tactics via two bespoke algorithms:
1. Combining purchase propensity and weather data
2. Full funnel conversion optimisation that focused on maximizing our insights to drive performance.
Result.
We massively improved performance with 23% less budget and smashed all the media benchmarks and business targets. And importantly, we generated online revenue that was 27% higher than the target.
- Delivered the highest Meta ROAS results we have ever seen, a 34% improvement YoY
- Beat all previous display ROAS benchmarks by 64%
- Total campaign ROAS improved by 84% YoY
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Utilising customer data, we transformed Kathmandu's Winter Sale media approach, optimising for real time consumer, weather, and conversion data to exponentially grow sales.
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