Case Study
Flywheel boosts sales by 97% for top Logicool product while optimizing ad budget with HAQM DSP
Goals
- Maximize top-line sales
- Determine an evaluation mechanism for different ad types
- Understand the customer journey
- Establish evaluation means for full-funnel campaigns
Approach
- Conducted overlap effect analysis via HAQM Marketing Cloud
- Analyzed purchase paths to understand first-touch and last-touch attribution value
- Built dashboards to visualize customer journey and identify key conversion touchpoints
- Used Sponsored Brands video to promote priority ASINs with emotive brand creatives
Results
- Increased sales of best-selling mouse by 97% year-over-year (YoY)
- Boosted conversion rate (CVR) for best-selling mouse by 2.7% YoY
- Decreased return on ad spend (ROAS) for best-selling mouse by 52%
- Drove 82% increase in new-to-brand (NTB) customers for best-selling mouse YoY
Japan-based Logicool is a division of global retailer Logitech International. The company designs products such as keyboards and mice that enhance connectivity and performance for computing, gaming, and music. Logicool started selling on the HAQM store in 2012. As part of a global initiative, the retailer began partnering with digital ad agencies in 2021 to maximize top-line sales.
The brand selected Flywheel as their digital commerce partner in 2021. Flywheel is an HAQM Ads Partner that combines tailored expertise with cutting-edge software solutions to achieve a singular goal: drive incremental sales, share, and profitability for their clients.
Logicool and Flywheel identified three goals for the brand’s online strategy: establishing an evaluation mechanism for different ad types, understanding the customer journey, and establishing evaluation means for full-funnel campaigns. Logicool sought more advanced evaluation means beyond traditional ROAS and CVR metrics.
Allocating higher budgets to demand-generation campaigns
To understand the contribution of different ad types, Flywheel conducted an overlap effect analysis using HAQM Marketing Cloud (AMC). They discovered that combining multiple campaigns was particularly effective in the mid-funnel consideration phase, especially for strategic products.
Flywheel also found that customers exposed to both HAQM DSP and sponsored ads had a 9,067% higher purchase rate than those exposed only to Sponsored Products. The more advertised products customers were exposed to, the higher the conversion rate. Based on Flywheel’s findings, Logicool allocated a higher proportion of their ad budget to HAQM DSP to stimulate demand-generation campaigns.
Furthermore, Flywheel helped Logicool understand the value of first-touch attribution instead of solely relying on last-touch attribution by visualizing HAQM DSP investments using AMC. They also optimized Sponsored Products bid prices by time of day for more cost-effective operations.
Visualizing the customer journey to find effective touchpoints
Using HAQM Marketing Cloud dashboard insights, organized by campaign type, targeting goals, and client product category, Flywheel was able to visualize purchasing paths from the first ad contact and identify the most effective touchpoints for conversions. An analysis revealed that HAQM DSP contributed the most to conversions when routed through Sponsored Products non-brand keywords such as “mouse” or “keyboard.” This reinforced the importance of off-site advertising to stimulate demand.
By visualizing HAQM DSP campaign investment evaluations using AMC, we helped the client understand the importance of first-touch attribution, rather than solely relying on last-touch attribution. With 70% of shoppers not looking beyond the first page of search results, it’s crucial to invest in sponsored ads to secure top positions. We leverage Flywheel Commerce Cloud’s proprietary software and innovations like HAQM Marketing Stream and HAQM Marketing Cloud to scale campaigns effectively.
— Tomoyuki Maeda, Director of Strategic Global Accounts, Flywheel Digital Japan Co., Ltd.
Promoting Sponsored Brands video ads to guide users through purchasing funnel
Purchase path analysis also helped Flywheel evaluate the most effective investment allocation to prevent opportunity loss along the marketing funnel. First- and last-touch attribution analysis revealed that Sponsored Brands played an important role in bridging the consideration and purchasing phases of the funnel.
Sponsored Brands video ads proved to be a strong influencer in guiding users through the purchasing funnel, resulting in higher conversions. Flywheel specifically selected retail-ready priority HAQM Standard Identification Numbers (ASINs) from Logicool’s product line to promote through video. They chose emotive creatives to enhance brand recognition for desktop and mobile search results on the HAQM store, building multi-touchpoint campaigns with video as the focus.
Increasing NTB customers, conversion rate, and overall sales of strategic product
Flywheel succeeded in increasing sales of Logicool’s best-selling trackball mouse by 97%1 compared to the previous year. The conversion rate for the same product rose by 2.7%2 year-over-year, and ROAS decreased by 52%.3 New-to-brand (NTB) customers also increased by 82% compared to the previous year.4
Flywheel embraced innovative thinking, focusing on Logicool's future by actively incorporating new HAQM Ads features and releases, responding quickly and flexibly.
—- Yujin Huang, Executive Officer, Head of EC Business Division, Logicool Co., Ltd.
Sources:
¹⁻⁴ Logicool, Japan, 2024.