As a long-standing DEPT® client we have supported with an array of projects, JYSK takes the spotlight once again with another notable success story. The furniture and houseware retailer is Denmark’s largest retail chain, with over 3,100 stores in 49 countries. Over the last 6 months, DEPT® has worked in close collaboration with both JYSK and Google to help with the brand’s paid search efforts to continuously optimise JYSK’s business. We conducted an online-to-offline bid strategy test in the brand’s country of origin, Denmark.
The challenge: driving store visits
Over the past few months, the SEA team at DEPT® has been working closely with both JYSK and Google in an attempt to steer bidding towards increasing both online transactions, as well as driving offline store visits. In a time of economic uncertainty, retailers are facing even more of a struggle to fight decreasing footfall. This made the challenge for DEPT® greater and much more crucial to solve.
Although JYSK has a considerable online presence, the majority of its revenue still comes from bricks-and-mortar, in-store purchases. While calculating online and offline sales may appear simple, the numerous metrics and cases of double tracking that would arise within JYSK’s Google Ads account meant that the task was not as straightforward as it may seem. Moreover, JYSK was not able to accurately track the influx of customers in store. Historically, the focus has been on optimising easier-to-measure online transactions, but in order to guide JYSK towards a more omnichannel approach and achieve the best results, we were determined to solve the challenge.
The approach: testing and experimentation
To conduct the online-to-offline test, our team focused their efforts on non-brand Search campaigns in the Danish market. The account offered a lot of data, enabling us to ensure that the test generated credible results from which valuable conclusions could be made.
In order to determine an overall figure for both online and offline conversions, we conducted a range of calculations that could be used for the bid strategy. This entailed adding total revenue from online orders, store visits and Click&Collect, while taking into account that Click&Collect orders would be tracked twice on both online and offline channels, and thus this needed to be subtracted.
The solution: adapting conversion targets
The main issue was determining how to ensure that the Click&Collect data was not double-tracked, both mathematically and practically. However, in our search management platform SA360, simple subtraction calculations are not possible for conversions. This meant that our team needed to manually extract the data and complete the calculations on a large scale of data, all with the purpose of triggering the algorithm to bid competitively and drive both online and offline conversions.
What was interesting about this case, is that the test resulted in more online conversions for the same amount of money, even though the previous setup had been fully optimised for online conversions. Previously, conversion tracking was fully optimised towards maximising revenue through the website, because JYSK has thousands of conversions on a daily basis, meaning there is a lot of data for the bid algorithms to learn from and optimise. When our team made the necessary adjustment to include store data, online conversion tracking stayed the same. And the result? A huge drop in click prices and an increase in both offline and online revenue.
The online-to-offline (O2O) bid strategy helped to generate more omnichannel revenue for the same cost making the test an immense success. While on the per-click level, we were much less efficient in driving web revenue, this was more than alleviated by lower CPCs that enabled us to buy much more traffic. The shift in data sent different signals to the algorithm, and potentially put JYSK in a better standing, as it was no longer fighting in the same auctions as many of its biggest competitors. Instead, it moved the competition slightly away from the broader signals and resulted in cheaper traffic targeted towards brick-and-mortar store visits.
This test showed the benefit of continuous testing and learning, which effectively helped us to achieve our client’s goal of increasing store visits. Our partnership with Google enabled us to collaborate closely and experiment with methods that were less common and essentially pushed the boundaries of the tools we use on an everyday basis.
At DEPT®, we strive to go beyond the ordinary and continuously innovate our ways of working to exceed the needs and expectations of our clients. Through a trusted and collaborative relationship with JYSK, we were able to tackle this challenge head-on and deliver results that strengthen the brand’s performance and revenue in a highly competitive market, along with providing valuable insights and learnings that we will continue to build upon in the future.
Data & Intelligence Director