CASE STUDY
Optimized Promotions & Shipping to Increase Profitability by 25% at Global Chocolatier
Challenge
A global chocolatier’s profitability had eroded to <3% net profit, including a $2.4M/year loss on shipping.
The company needed to unify and optimize a holistic, omnichannel promotions strategy that balanced shipping costs, promotions, and the user experience.
Approach
- Acquired and mined 3 years of historical data
- Analyzed patterns of correlation and causality within customer behavior, distribution network impact, and promotion financial impact
- Built a predictive model for determining optimum use of shipping and promotions as growth levers
- Planned a 14-month omnichannel Promotions Calendar
Results
I.
Increased North American ecommerce profitability by 25% in Year 1
II.
Drove 6% EBITDA improvement from shipping policy and promotions changes in Year 1
III.
Identified 20% annual shipping cost savings
Results
I.
Increased North American ecommerce profitability by 25% in Year 1
II.
Drove 6% EBITDA improvement from shipping policy and promotions changes in Year 1
III.
Identified 20% annual shipping cost savings
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