How Phelps Digital Helped One Multi Location Furniture Retailer Save Thousands in 30 Days
CHALLENGE
This retailer was looking for a full time employee to come in and help manage their digital providers and overall strategy. They wanted someone with a strong digital background who could analyze data, make recommendations, grow their e-commerce department and stay with the business long term. The problem was finding the right candidate who met all of those requirements. On top of that, they were struggling to grasp the ROI with their digital investments and didn't know what to change or how to approach things differently.
SOLUTION
The Phelps team immediately dug in and reviewed 6+ months worth of previous reporting and spoke directly with all digital providers to understand current strategies and areas of opportunity. Within the first weeks, Phelps identified a significant amount of wasted spend with the retailer’s then search & social marketing provider. It was discovered that their total investment comprised of nearly 50% fees, no budget differentiation amongst their stores despite significant differences in revenue, and little to no pro-active strategy recommendations or changes. Once reviewed with the retailer, it was quickly decided to implement a new solution. Phelps worked with this retailer’s other digital providers and found additional savings opportunities. A management fee negotiation with the lead provider yielded a 3 month discount during the initial COVID outbreak. An analysis of their chat tool provider identified a billing for a yet to be released feature. This resulted in additional savings with an ongoing credit until that feature rolled out.
RESULTS
With a new paid search provider, the amount of media spend nearly doubled without a change in CPC investment due to the difference in management costs. In 2020, even with an increase in direct media spend, Phelps Digital saved this retailer upwards of $27,000 in fees. Those savings will continue in 2021 and beyond. The icing on the cake is reflected in the sales. This retailer was up nearly $6M vs 2019 and set store records for both sales and margins. This was one of their best years in a long history.
