"The feed-driven SEM approach through Kenshoo’s RealTime Campaigns helps the Ovative team scale the long tail components of the program with accuracy while the Kenshoo Portfolio Optimizer ensures spend is optimized towards keywords driving the most profitable sales. Overall, the Ovative team has been able to leverage the Kenshoo platform to help automate workflow processes and find opportunities to save time and money without compromising results."
Steve Baxter - Executive Director - Ovative/Group

Background

Meijer, a Michigan-based, retailer founded in 1934, is known as the pioneer of the supercenter. With nearly 200 stores throughout the Midwestern United States, Meijer has evolved to offer more than just groceries and fresh produce, stocking a range of items including apparel, furniture, pet supplies, electronics, and more. Likewise, Meijer.com offers customers an even broader assortment of items available for purchase online with incentives that include free shipping to the customer’s local Meijer store.

In February 2012, Meijer brought on digital agency The Ovative/Group, who leverages Kenshoo’s Enterprise platform to power an SEM strategy that not only set up Meijer to win in-region but also positioned Meijer.com for future growth as a pure-play e-commerce brand.

Challenge

Steve Baxter, Executive Director at Ovative/Group, and Zak Haines, Paid Media Director at Ovative/Group, knew that in order to drive profitable growth of the SEM program they would need to lean on their years of experience and leverage best-in-class technology to:

    • Optimize spend across the broad catalog of SKUs Meijer maintained, all with varying degrees of margin rates.
    • Drive both acquisition and utilization of key brick-and-mortar programs and the online weekly ads
    • Support the future strategy of optimizing online digital spend based on both commerce and brick-and-mortar outcomes

Solution

Given the wide array of Meijer’s products and conversion events, Baxter and Haines sought to utilize Kenshoo’s intelligent automation tools to ensure campaign efficiency and to maximize Meijer’s goals across both online and offline initiatives. The first step to implement the necessary Kenshoo tracking to capture various customer interactions across Meijer.com such as store locator searches, adding items to cart, and item purchases. With tracking in place, the Ovative/Group team could now assign value to different customer interactions that did not have a direct revenue number associated with the event, allowing Ovative to optimize specific campaigns beyond just clicks, CPC< or single event variables. Ovative/Group also categorized Meijer campaigns by product lines to accommodate different margins and managed these on a portfolio through Kenshoo Portfolio Optimizer (KPO) to maximize profitability. To further support the e-commerce experience, the team implemented Kenshoo’s RealTime Campaigns (RTC_ to ensure accuracy and relevancy in inventory representation and to complement aggressive long-tail keyword expansion strategy aimed at increasing ROI.

Results

In just 6 months, Ovative/Group has helped Meijer increase SEM revenue by 16% versus last year and improved SEM margin even more. The teams attributed these successes to fine-tuned bidding strategies and increased relevancy. With Kenshoo’s RealTime Campaigns technology, Meijer increased its SEM program by more than 1.5 million keywords while boosting the overall efficiency of the program.

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