The Company: Luxe Weavers
Luxe Weavers is a premium family-owned rug company that looks to provide quality home-furnishing items.
They’ve developed a sizeable foothold in online marketplaces by offering a variety of high-quality styles at a lower cost by working directly with manufacturers.
This lean supply chain and a strong eye for quality, combined with a focus on excellent customer experience, have made their business fundamentally strong, but one concern remained. How can they get seen by more people and increase their market share in an agile and cost-effective way?
The Challenge: Momentum in a New Marketplace
In 2021, Luxe ran Walmart ads off and on but could not build momentum.
Looking to increase market share and overall sales volume they decided to build their marketing operation on Walmart’s emerging online marketplace.
Understanding the opportunity for growth on the platform, they wanted to double their sales on Walmart while maintaining an ACOS below 30%.
Doing so would allow them to generate early momentum in a marketplace gearing up to compete against the top places to sell.
The Solution: Flexible Yet Calculated Targeting
We knew with the right targeting we could grow sales well beyond the 100% growth benchmark they had for us.
We were able to adapt to find new opportunities every day by:
- Running Walmart Auto campaigns to harvest new keywords for each product; and,
- Using our funnel targeting system to develop everything from short to long-tail keywords built from in-demand product attributes.
Within the first few days of the learning phase, Trellis was able to identify hundreds of sales opportunities to augment Luxe’s approach. With daily oversight from our system, we continuously took advantage of high-converting keywords by placing them in manual campaigns. These allowed us to control our bids to ensure that we were spending optimally.
As we ran, we found that medium-tail keywords with a phrase match type were our most effective. Our system found that the flexibility of these keywords was the key to balancing search volume with specificity. This measured control ensured growth and profitability for Luxe. Some medium-tail, phrase match keywords that led to our success were:
- Rug for living room;
- 8×10 rug; and,
- Abstract area rugs.
While diligent exploration and flexible targeting can ensure that you are on top of changes in the market, daily oversight by our system ensured that we were focused. Without this exploratory yet deliberate approach, it would have been drastically more difficult and time-consuming to grow Luxe’s presence on Walmart.
Ultimately, this volume of quality customers created a positive feedback loop. The momentum would allow us to increase ad sales by 1100%.
The Results: Growing With Relevant Ads
Over 10 months, we grew daily ad sales by 12 times.
This was while maintaining an ACoS below 30% all year.
More recently we achieved our huge sales growth with a RoAS of 6 which was about 25% higher than the yearly average, alongside a conversion rate that was 28% higher than our yearly average.
What's Next?
With daily improvements to Luxe’s Walmart ads, we will continue to adapt as market conditions change. Our marketing is in a good position to grow with the business while it grows.
As Luxe’s champion products continue to see significant growth, Trellis is also ready for new product launches. Our system will leverage historical data and make recommendations on which products to double-down on as we begin to advertise and analyze the results.
Going forward Trellis is looking to embrace the Walmart Connect API as it starts to launch new ad placements like sponsored brand ads. We will continue to offer reliable automation to grow with our customers businesses and to find new ways to generate more sales.
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