Case: Ridestore
RIDING HIGH with PREDICTIVE ANALYTICS
Ridestore is all about their customers. They ride it out in the slopes together. Getting direct feedback to inspire and perfect their products. The last thing they want to spend time (and money) on is developing high-end e-commerce analytics systems. Luckily, we happen to love that stuff. Also, we are damn good at it. But we know nothing about how to develop ski apparel. That’s why we make great partners. In this case-study you can read all about how we are creating an e-commerce icon together, with analytics that bring game-changing insights on a plate. That’s what you get when you ride with us.
Reduced marketing spend
Lower CAC
Net Gross Margin 3
Return on investment
Doing their own thing
Almost 20 years ago today, the ski-crazed brothers Emil and Linus Hellberg started Ridestore, mainly to get their hands on gear not available on the Scandinavian market. After a few years they wanted to realize their own ideas. This leap resulted in the two brands - Dope and Montec, both sold online through Ridestore. The concept resonated and today they are one of the most successful Swedish e-commerce retailers with a turnover of plus 1 billion SEK and are present in over 15 markets.
objective
Good news for profitability
Ridestore wanted their marketing to be more efficient. Who doesn’t? But it’s not that easy; you need to do things differently. Instead of traditional thinking like ROAS, Dema introduced a new perspective that shows true profitability. We also managed to radically increase profitability on inventory and end-of-season stock thanks to our AI and machine learning edge. Better tools lead to better decision making – both on and off the slopes.
Solution
The future today
We also brought in our best online growth experts to work closely with Ridestore. Together, they tested and tried numerous different marketing strategies to find the optimal solution. Additionally, our tools actually have the ability to predict the future. No kidding. Which sure comes in handy when you want to plan ahead and make smart decisions about what to sell and when to sell it, based on what customers are likely to want. This is especially important in such a seasonal business like Ridestore’s.
The list goes on
Furthermore, Ridestore implemented our Advanced Marketing Optimization. It might sound a bit generic, but it’s far from it. It means using machine learning for better data collection and allocating marketing budgets with profitability in mind. Yes, there is a strange, but magical word for this - it’s called epROAS.
"Our collaboration has been nothing short of a revolution. Dema’s solution is now the beating heart of our operation and we‘ll keep evolving and growing together.”
Ridestore
results
Ridestore is changing their game with deeper insights
Optimized marketing spend
The shift to epROAS-driven marketing strategies reduced marketing spending by double digits while significantly increasing net gross profit 3 and sales above expectations.
Improved inventory management
Predictive insights into inventory trends allowed Ridestore to adjust marketing spending dynamically during the coarse of the season, and at the same time helping the team to plan purchases more effectively for future seasons.
Improved sustainability
By accurately predicting demand and adjusting marketing efforts accordingly, Ridestore minimized overproduction and waste, contributing to more sustainable business practices. This alignment with environmental goals reflects both Ridestore's and dema's commitment to reducing the ecological footprint of e-commerce activities.
Key findings
- 10% Marketing spend
- 10% CAC
+ 6% Sales (expected)
+ 17% Net Gross Margin 3
+ Reduced human hours spent
+ Reduced overproduction due to better demand predictions
Introduction to the key metrics mentioned in this case study
epROAS
One of the most important KPIs for Ridestore in Dema's platform is the epROAS, which measures the profit return on their ad spend. By monitoring that metric closely by market, Ridestore can effectively allocate spend where they know they have the most profitable return on each marketing dollar spent.
Net Gross Profit 3
The absolute profit metric for commercial organizations in e-commerce. Following NGP3 accurately and updated, connected with all your other data, is a comparative advantage, enabling Ridestore to work smarter and faster.
FAQ
Learn more about profitable growth
We've written several comprehensive blog posts about epROAS and other vital parts of profitable growth.
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