Everyday Needs – 10 Months of Growth.
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Auckland
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London
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Everyday Needs – 10 Months of Growth. Why operational efficiency should be a core consideration for all marketing partners.
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Everyday Needs is a retail store based in New Zealand, with both online and physical sales channels. Ten months ago Everyday Needs came onboard to our Growth programme and since then has experienced significant growth and operational improvements throughout this time.
In this case study we explore how strategic changes in the approach to performance marketing has led to enhanced online performance, particularly focusing on operational efficiency and its role in sustainable growth during economic downturns.
Client Background - Industry and Market Position
Everyday Needs operates within the e-commerce sector, specialising in home goods and lifestyle products. The company emphasises informed consumption, ensuring its offerings are both aesthetically pleasing and highly functional. By curating unique items that enhance daily living, Everyday Needs sets itself apart in a highly competitive market.
Catering to individuals seeking unique, high-quality items that combine functionality with style.
Their product range includes:
Home Goods: Items designed for everyday use.
Lifestyle Products: Selections catering to various aspects of daily living.
Unique Finds: Exclusive products appealing to customers seeking something special.
Strategic Changes and Implementation
Prior to partnering with us, Everyday Needs faced significant challenges with their previous digital marketing provider. High ad spend with negative to little return (ROAS) was a major concern, leading to inefficiencies in their ad strategy, spending and overall online performance.
Our approach has focused on a data-informed, brand-led strategy, focusing on key foundational activities. Part of this process has been around optimising the technical setup of the ads, ensuring the highest quality audience and users were being targeted and communicated with, this in turn has allowed the omni-channel data to be more trustworthy and reflective of the customer profiles of Everyday Needs. These data-pools are now able to be leveraged to continuously improve return on ad spend whilst reaching new potential customers through a considered approach to broader brand awareness campaigns.
Part of this execution was driven by reducing ad spend across all channels by 76% whilst ensuring all activities adhered to best practices without deviating from the brand direction.
By concentrating on these areas, we aimed to maximise performance and achieve the highest ROAS, industry standard sitting for good performance is 800%. Everyday Needs over the last 10 months period has seen an overall (Meta and Google) ROAS of 947.9% compared to the same 10 month period within the previous year under the past provider where they had an overall ROAS of 190%.
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Results and Performance Improvement
The impact of these strategic changes was evident in several key metrics. The Year-on-Year performance from the past 10-months is broken down below.
Topline Performance
+7%
Gross Online Revenue
+15%
Total Online Revenue After Ad Spend
+16%
Return Customer Rate (RCR)
+6%
Average Order Value (AOV)
Meta Ads Performance
Operational Efficiency improved significantly, with only 10.86% of net ad revenue taken up by ad spend (previously 62.58%)
-76.12%
Decrease in Ad Spend
+37.64%
Increase in Ad Revenue
+475%
Increase in overall ROAS
921%
Return On Ad Spend (ROAS)
+227.88%
Increase of Profit After Spend
Google Ads Performance
Operational Efficiency improved, with only 9.99% of net ad revenue taken up by ad spend (previously 40.14%)
-76.14%
Decrease in Ad Spend
-4.14%
Decrease in Ad Revenue
+301.68%
Increase in overall ROAS
1000.60%
Return On Ad Spend (ROAS)
+44.14%
Increase of Profit After Spend
Combined Ads Performance
Operational Efficiency improved significantly, with only 10.55% of net ad revenue taken up by ad spend (previously 52.61%)
-76.12%
Decrease in Ad Spend
+19.08%
Increase in Ad Revenue
+398.71%
Increase in overall ROAS
947.9%
Return On Ad Spend (ROAS)
+124.78%
Increase of Profit After Spend
Conclusion
The performance of Everyday Needs over the past ten months illustrates the critical role of operational efficiency in achieving sustainable growth, especially during economic downturns. By optimising ad spend and focusing on data-informed, brand-led strategies, Everyday Needs not only improved their performance but also secured a positive outlook for the future.
This case study underscores the importance of strategic operational improvements in navigating and thriving through challenging economic conditions. If the foundational set up isn’t optimised and the core business activities aren’t brand aligned then we can guarantee a higher ad spend will never equal a higher ROAS or ad revenue.
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Image Credits: @everydayneeds