AT A GLANCE
Analysis and tactical planning validates strategic growth plan and positions manufacturer for acquisition.
A leading textiles manufacturer sought to assess market position, increase revenues, and capture market share in preparation for acquisition. Arcalea was engaged to ascertain if target revenues were achievable.
Engaging on several dimensions, Arcalea was able to show various “what-if” analyses which would model opportunities for growth and increase revenue, while demonstrating greater addressable market and increasing customer acquisition five-fold.
A relatively well-known textile manufacturing brand needed to grow market share to increase enterprise value, positioning the brand for private equity acquisition within 3 years. The brand needed to quantify the unaddressed market and model the cost to secure it. With high brand awareness but relatively low share of voice, and without infrastructure or capabilities to assess transformation, little customer experience data was available. And the current sales model was dependent on third party collaborators and multi-line sales representatives, which increased opacity and complexity.
To quantify expansion opportunity, Arcalea evaluated the competitive landscape, the brand’s relative position, digital assets, and infrastructure. Assessment presented immediate actions and recommendations for increases in revenue, the potential to increase actionable data of the customer experience, relevance and visibility, and increasing new customers. In addition, the opportunity existed to model a real-world counterfactual assessment which could prove the model exactly.
Customer acquisition modeling identified underdeveloped market opportunities within current sourcing, and additional untapped sources. Competitive keyword analysis revealed an opportunity to drive organic search rankings. Ad space analysis uncovered multiple channels available for customer acquisition as well.
While limited digital advertising was deployed prior to the initiative, it was uninformed by the competitive ad space or driven by strategic focus or tied to goals. Online advertising was redeployed and aligned with keyword research and channel-based tactics to reach competitor and non-category customers. Arcalea recommended capturing multi-point customer data and began by tracking conversions, tying marketing efforts to new customer acquisition.
Reaching a larger market required conditioning the website to match customer search intent most aligned with the brand’s value proposition. Over 60% of the addressable market present in the ad space was lost to rank alone. Raising the site and page-level relevance would capture this customer pool for no additional advertising spend. Moderate structural and content changes, such as automated meta-data tailoring across thousands of pages, as well as page keyword placement, ensured website signals correlated with customer search intent, connecting new users to the brand at a higher rate.
After transformation of the digital approach, the additional market share gain was connected to the measurable analysis-driven tactics. Using the brand’s sister domain as a control, Arcalea was able to compare a counterfactual analysis, quantitatively measuring ROI directly attached to actions and recommendations. As a result, new site visitors would increase from 178,000 to nearly 1 million annually with continued online advertising and site content updates.
After assessing the market against company business goals, Arcalea demonstrated a plan to significantly increase revenues by implementing infrastructure capable of capturing and reporting various segments, capturing intelligence on customer interactions, calculating returns on channel investments, and coordinating a multi-channel approach which would exceed target revenues by 32%.
Within 2 years of the digital repositioning, the brand was acquired by private equity, and Arcalea continued to implement the growth plan, continuing to increase customer and competitive intelligence and positioning the brand for growth through the current growth phase. With each new insight, the opportunities become more definable, the tactics more closely aligned to the various customer journeys, and the model for capturing unaddressed market continues to increase learning and efficacy.
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