In 2016, Chicago based Parts Town, a market-leading distributor of genuine OEM foodservice equipment parts, came to Tinuiti with a problem—their current agency was unable to match their enthusiasm for growth.
Since its launch in 1987, the company had experienced exponential revenue growth, earning a spot on Inc. 5000’s list of fastest-growing private companies for 10 consecutive years. The secret to Parts Town’s success is simple. In an industry slow to adapt to the ever-changing world of ecommerce and technology in general, Parts Town has stayed ahead of the curve by innovating quickly utilizing digital channels to drive their business in an intentional and data-driven way. Their business model revolves around implementing the latest technology and features to stay ahead of the modern consumer.
Parts Town craved this type of growth in all areas of their business. They needed a digital agency partner undeterred by a challenge because they wanted to grow their search and shopping channels 30% to 40%, and not just for one year but for every year.
And because of this, they needed an agency that wasn’t just creative and innovative, but one that had a proven track record of managing campaigns featuring a robust product catalog and executing best practices with such precision and expertise that growth was inevitable.
With hundreds of thousands of SKUs, Parts Town was struggling to find the “sweet spot” with their audience segmentation, product catalog, and campaigns that would allow them to scale quickly.
Increase in Revenue in first month partnering with Tinuiti
Increase in Revenue after 1 year partnering with Tinuiti
Increase in Revenue over 3 years partnering with Tinuiti
After reviewing Parts Town’s search and shopping accounts, Tinuiti’s Search and Shopping teams knew they needed a steadier foundation and decided that both accounts needed a total overhaul. Each of the teams set out to accomplish these main goals.
1. Increase New User Acquisition and Revenue
Grow new user acquisition and overall revenue at equal levels, by analyzing and segmenting customer data with granular breakouts to not only understand the Parts Town audience, but achieve growth among user sets.
2. Online & Offline Data Analysis
Understand the true impact search marketing provides for their business, by tying together online & offline data to foster further growth and profitability.
3. Test New Pilots and Betas
Be first-to-market by testing new pilots and betas in order to remain at the cutting edge of digital marketing, and provide customers with the most comprehensive and tailored experience possible across all types of product categories.
4. Create Robust Campaign Structure
Develop a robust campaign structure and strategy that provides coverage to all available product categories and the ability to zero-in on select areas by layering on internal data and trends to influence strategy.
5. Implement Best Practices
Optimize product data according to Google Shopping Ad’s specific requirements and Tinuiti best practices. These included, but were not limited to, enhancing product title and descriptions, adding more granular product categorization, and leveraging custom labels.
“Tinuiti is a great partner. For more than three years, the strategy driven by their team has significantly contributed to the growth of our ecommerce business. We have a complicated business and Tinuiti has worked to understand that complexity and use it to continuously optimize and improve our performance. We thrive on innovation and being the first to do new things. Tinuiti is always looking for the next big thing and gives us access to features and betas to try the latest technology before anyone else. How the work gets done is just as important to us as the results and culture is key. Our Tinuiti team fits very well with how we work, making it very easy and enjoyable to work with them every day. They have really become an extension of Parts Town in many ways.”
Justin Lundsteen – Senior Manager, Digital Marketing | Parts Town
Tinuiti and Parts Town rolled out the new account structure in February 2016, and immediately bumped spend 30% and saw a 15% increase in revenue with a minimal (1%) decline in ROAS.
Over the course of the next few months, they continued to increase spend and revenue while maintaining a steady ROAS. Throughout this period, the teams used the influx of account data to their advantage by continually cleaning up inefficiencies across various product categories and hone in more on what their main strengths were.
In Q3 of 2016, they hit their stride. With a more efficient account structure, they exponentially increased revenue all while significantly improving ROAS. Comparing the account performance under the old structure in 2015 to the account performance under the new structure in 2016, what the team accomplished is pretty impressive. In just a year’s time revenue had increased 64% and ROAS increased 32%.
The success shows no signs of slowing down, as 2019 is on pace to continue the incredible trend of exponential growth for Parts Town. So far in 2019, spend is up just 12% while revenue is up 23%.