Perry Ellis Exceeds their Target Return
by 30% Using Amazon Advertising
Discover how Perry Ellis, a leading fashion brand for men and women, utilized strategic traffic segmentation to increase their Amazon Advertising ROAS with a limited budget. Read on for the full success story…
After a successful Prime Day in 2017, Perry Ellis International, a leading fashion brand for men and women, began to analyze their ad data and concluded that although they had driven a high volume of sales, they could probably be achieving more profitable conversions at their current rate of spend.
Perry Ellis’ major concerns centered on a lack of bandwidth and expertise to tackle their Amazon Advertising issue. With nine or ten brands and businesses managed by different people under their umbrella, they were fragmented and all over the place, with little optimization taking place.
Additionally, the company was approaching the end of their fiscal year and had a lofty goal of increasing their return on ad spend (ROAS) to $10 for every $1 spent on the channel, despite facing limited budgets for their upcoming holiday season. Senior VP at Perry Ellis, Michelle Reed, recounted these daunting hurdles: “The ROAS completely dipped, and we had to cut off one brand entirely because they had reached their budget and there was still time left in the year.” By October, Perry Ellis reached out to ROI Revolution for help.
Our Expertise in Action
The ROI Revolution team quickly developed a game plan for the account, working closely with Perry Ellis to determine how to most effectively use the remaining budget. They expanded the brands campaign coverage for impact and focused on their core products in order to maximize sales.
With the help of our proprietary technology, YARD, the team was able to recover account history and create reporting that allowed Perry Ellis to understand the significance of their historical data. “The reporting was really critical, because I think without it, it’s just your gut and your estimate, but the numbers are the numbers,” Reed said.
Prior to ROI Revolution, Perry Ellis was placing almost every single product and keyword they had for a brand into one main campaign. This inadvertently gave Amazon most of the control, allowing the platform to select what product was shown when someone entered the keywords listed in the campaign.
“Whenever we took on the account, they had about four active campaigns for each brand. After our restructure they probably had between 20 and 30,” Marketplaces strategist, Evan Davis said.
Almost immediately, Perry Ellis began to see their ROAS turning around. The key? Restructuring. The most important thing ROI Revolution did to ensure Perry Ellis’ success was putting their campaigns in a structure that gave them the most granularity and control, guaranteeing their ability to push and pull the levers to hit certain targets.
What is YARD?
A work around for Amazon data limitations.
- Track data beyond Amazon’s strict 60-day window
- Measure impact of changes made at micro and macro level
- Targeting based on profitable search queries
- Measure Amazon similar to other paid channels
By December, Perry Ellis had the account back under budget and had exceeded their target return by more than 30 percent.
“We’re now able to look at this year over last year, or month over month; to me that was a critical miss that immediately we were able to see benefits from,” Reed said. “Our ROAS continues to be strong. We are very pleased with the payoff of the campaigns.”
Back Under Budget
Exceed on Target Return
Good Account Structure is Essential. This didn’t happen overnight. Transforming an account into a good structure is a very time intensive process, and Amazon is ever-changing. With more and more brands starting to sell on Amazon, as well as Amazon’s own private labels, it’s also getting more expensive. “If you want to grow your business and show your product in front of as many people as possible, you have to be willing to put that budget aside and compete with Amazon at that level,” Davis said.
Advertise with Focus. Since working with ROI Revolution, Perry Ellis’ brand teams have started thinking differently about the value of Amazon Advertising. They now choose which products to advertise with much more focus, by selecting products that best contribute to their brand’s success.
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