Lomax aimed to grow bottom-line profit in Denmark as their main market. To reach that goal, they split it into primary and secondary targets. The two primary targets included increasing profit per order and order-level profit after ad spend within seven months. The secondary target was to increase profit on ad spend.
However, there were challenges to overcome. Firstly, how to structure Lomax’s 25.000+ products and product categories in a scalable way? Secondly, how to ensure that profit will flow into Google Ads without data loss or breaking? Lastly, how to ensure that profit is correctly calculated?
s360 developed a profit maximization solution to calculate each order’s total profit to allocate budgets to campaigns that drive the most profitable orders.
Therefore, s360 implemented order-level profit tracking and a dynamic budget and bid allocation to drive higher profitability rather than just top-line revenue.
“Working with s360 has been a great business experience. The team is knowledgeable and committed to reaching our business goals. With s360, we have been able to get incredible and valuable insights into how our top and lower funnel marketing channels perform on both revenue and profit, thus, based on customer and channel data, we can focus our teams’ efforts on what we know create business results.
We have been able to switch from ROAS to POAS, which has improved our profitability significantly. In addition to that, we know which products drive sales and have a unique knowledge of price points per SKU, the market potential and our competitors. I would not hesitate for a second to recommend s360 at any time."
The campaign exceeded all objectives due to a strong collaboration between s360 and Lomax. Within seven months, the impressive results were the following:
European Search Awards 2022