Addery

How catalog analysis and optimizing for right products (Revenue contribution + High inventory stock) improve performance in a Swimwear brand

About the

Brand

Addery offers a curated selection of unique and trendy clothing and accessories for women, designed with a focus on comfort and effortless style.

Introduction

Optimizing Product Insights and Ad Spends for Growth

Addery faced challenges with limited product insights, low page views on numerous SKUs, and inefficient budget allocation. To address these issues, we implemented a Dynamic Path Analysis (DPA) strategy, identifying best-selling categories, prioritizing top-performing products based on ROI and return rates, and optimizing ad spends. This case study highlights the importance of data-driven decision-making and efficient allocation of resources for sustained business growth.

Challenges

Lack of product and category-level insights: Addery has a wide range of products. The challenge in generating product and category-level insights prevented them from focusing on products that were profitable for them.
Significantly low page views on 1200+ SKUs: 1200+ SKUs were categorized as Less Discoverable or Zombie products because of a skewed distribution of ad spends across the entire catalog. There was a need to identify the right products to promote in catalog ads on Meta.
Inefficient budget allocation: The brand highly depended on a few products without the efficient knowledge if they were profitable or not. To scale the order volume, exploring more products was needed along with an efficient allocation of ad spends across the catalog.

Solution

We identified the best-selling categories, created multiple product sets & sent traffic to them.
Analyze the performance & product profitability.

We sort-listed the top-performing products (products contributing more than 90% of revenue) in 2 categories in terms of ROI and Return Rate.
- 1st priority products: ROI > Our target ROI, Return < 15%
- 2nd priority products: ROI > Our target ROI, Return > 15%
After the products got Restocked again, we started running creatives and DPA for only the top performers.

Results

Scaled the account by 58% average daily spends
Average daily revenue increased by 119%
Average daily ROI improved by 38%

Key Takeaway

Direct comparison of ad spend against Shopify sales & deep diving into the product performance metrics (Returns, Orders, CAC, ROI, % Contribution to Return, % Rev Contribution, % Spend Contribution, Rev Contribution > Spend Contribution) will help to measure efficiency.

Best Performing Creatives

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