KitchenLab is a Swedish retailer specializing in cooking and kitchen tools for professional and amateur chefs. KitchenLab focuses on high-quality products, targeting the growing Swedish foodie community. In contrast to many of their competitors, KitchenLab does not rely on discounts and promotions. Instead, they focus on offering their loyal customers a relevant selection of products and relevant recommendations.
KitchenLab has two physical stores, one in the heart of Stockholm and another one in Malmö in the south of Sweden. In recent years, the digital storefront at www.kitchenlab.se has gotten increasingly important as well, with food enthusiasts going online to find inspiration and research appropriate cooking gear. To meet this expanding demand KitchenLab’s product range has grown to cover over 8000 products from 200 different manufacturer brands. Top selling products include everything from Sous-vide cookers, barbeques and mixers to saucepans, kitchen knives and wine glasses.
Challenge
Solution
Results
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Challenge
KitchenLab wants to drive profitable growth to finance important future investment. The challenge was thus to find efficient ways to increase revenue - without increasing spend.
KitchenLab is a premium kitchenware retailer and do not compete on price (as most other kitchenware retailers do). Offering high class service and know-how and having a relevant, high quality product selection is KitchenLab’s selected strategy. As KitchenLab and their competitors still sell many of the same products, finding the most profitable products to advertise and sell, instead of just competing on volume, is crucial.
Solution
KitchenLab reached out to the digital agency Keybroker and presented them with their challenges. Keybroker initiated a close collaboration with KitchenLab to get insight into everything from long term business goals to detailed product margins, and then developed a digital sales strategy accordingly. Product data was soon identified as a key factor in increasing profitability.
First, Keybroker used Datafeedwatch to improve the product feed quality. Titles were checked so that they included brand name, colour, size and other relevant parameters that are important to increase reach and CTR. Google product categories were added when missing from the original feed, or improved when they weren’t specific enough.
Second, the feed was enriched by mapping the product margin of different categories and adding it as a custom label in DataFeedWatch’ internal fields. Based on this mapping the actual net income from digital sales could be better understood and acted upon, also making it easier to prioritize which products to advertise.
The new improved product feed was used across a wide range of digital marketing channels, including Google Shopping, Facebook Ads, price comparison sites and affiliate networks.
A new Google Shopping campaign structure was implemented based on the new priority and margin labels assigned in the feed.
Results
During the first three months of working with Keybroker and DatafeedWatch, KitchenLab managed to
- Reduce advertising costs by -35% - focusing on the most profitable products
- Increase traffic by +18% - Higher relevance of Shopping titles / categories
- Reduce CPO by -23% - More relevant traffic
- Increase ROAS by +46% - More relevant traffic and lowered costs
November-February, 2018 vs 2019, Google Shopping:
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Case Study by Joel Florén and Hannah Fahd