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We have a lot of satisfied and happy customers whom we help to improve their KPIs and save time managing Google Shopping. We know that the goal of all retailers or marketers is to maximize their profit. But do you know your real pain? First, you need to identify which KPI causes trouble and the next step is to optimize your campaigns based on this knowledge. But both parts can be really tricky.
- Introduction of baby-walz, one of the most successful baby article retailers
- Challenges of baby-walz and online retailers in general
- baby-walz achieved great improvements by using a bid management tool
- Whoop! improved the ROAS and turnover of baby-walz
- What that means for other online baby article retailers
Since August 2015 baby-walz is one of our biggest and most loyal customers. With over 30.000 products, which are offered in six countries, baby-walz is one of the leading providers of baby articles in Europe.
Alfons Walz founded the company in 1952 with the vision of making the lives of young mothers as comfortable as possible. The idea of sending quality baby articles by mail was a complete success, which laid the cornerstone for their further expansion. Meanwhile, there are 48 baby-walz specialty shops in Germany, Austria and Switzerland.
In 2000 the company’s first online shop (baby-walz.com) went online. Today it substantially contributes to the economic success across six countries. Baby-walz.com is among the biggest online shop for baby products in the German-speaking area, providing a great variety of baby articles for not only parents and their kids but also parents-to-be, including:
- fashion for mothers and their kids
- everything about baby care and child-oriented nurture
- suitable furniture and bed accessories
- toys for inside and outside
- buggies and car seats for a safe and comfortable transport
Before using a tool for Google Shopping, the online marketing managers of baby-walz controlled campaigns manually, leading to typical challenges in the daily administration. It’s hard to stay on top of things if you have a quickly rotating assortment and different discounts or seasonal events that influence your performance. Which challenges did baby-walz face?
(1) Complex bid adjustments
Due to the great amount of products, baby-walz marketers struggled to find the appropriate bid for every product and to decide whether the bid should be increased or decreased. Bid management tools help to adjust the bids for every product or product group automatically — whenever needed.
(2) Sparse decision basis for the optimization on the product level
It’s almost impossible to decide on an appropriate bid for long tail products because there is little to no information about them available. This was also a major challenge for baby-walz. Many retailers who start with a new Shopping campaign do not have the advantage of historical data, which is the only way to measure and compare your performance.
(3) Administrative expense
Adjusting bids for products of such a big online shop is complex and therefore quite time and resource consuming. The online marketing managers of baby-walz spend a great time dealing with bid adjustments and optimization. With the use of a bid management tool and its automation, this valuable time can be reduced.
Facing similar challenges?
To face this challenges, baby-walz had the possibility to choose between different Google Shopping vendors like Marin, Kenshoo, Sidecar, Whoop! and many more. Out of this pool, baby-walz decided to use Whoop! as their future bid management tool. Why? Because Whoop! was specifically developed for Google Shopping and it’s particularities.
Whoop! solved the challenges of baby-walz by automating the bidding for over 30,000 articles, easing the workload of the team so that they can focus more on strategic tasks. Since the algorithm is based on a self-learning approach, it can even assess the optimal CPC-bid of new products in the online shop. Why is this so special? Without historical performance data it is hard to define a CPC-bid for these new products (similar to long-tail products with few clicks and conversions). Whoop! doesn’t necessarily need information about every single product — our innovative algorithm assesses correlations between many different factors e.g. brand, or category and predicts the conversion rate potential before setting item-bids accordingly.
The result? With the help of Whoop! the ROAS of baby-walz improved by 28% while the turnover by increased by 31%.
“Whoop! delivers great added value in the management of our shopping campaigns. Thanks to the advanced bid strategies, we can create and adjust individual bidding rules quite easily. The item-based campaign structure and predictive bidding enable the CPC bid of every single product to be automatically set and adjusted. We thus save time and can apply the freed-up resources elsewhere. Moreover, our performance has improved through Whoop! – our sales are increasing and our ROAS has significantly risen. I can recommend Whoop! to everyone who would like to exploit the full potential of Google Shopping.” — Olga Kauffmann, Senior Online Marketing Manager
The challenges and issues baby-walz faced before using Whoop! also apply for other baby article online shops. If you’re an online marketer at an online shop you most certainly know the pain of adjusting and dealing with bids every day. As you can see by the example of baby-walz, it doesn’t have to be that way. Using Whoop! doesn’t only help you improve your ROAS, it also saves valuable time and allows you to invest that valuable time in strategic tasks.