Value City Furniture was used to reaching its consumers in a traditional way, through weekly print ad circulars and television. But when it used Yahoo! My Display Ads with retargeting, the company was surprised by the success it found in using online advertising to drive customer conversions and in-store sales.
Value City Furniture, owned by parent company American Signature, Inc. is one of the largest furniture retailers in the U.S. with annual sales of $1 billion and 128 stores. The brand wanted to make it easier for prospects to peruse its offerings, register with its website and apply for credit through its online channel. Most of all, it wanted its online activities to drive in-store sales. “Traffic to our website is critical to the success of our business, but what matters most is converting that online customer into an in-store customer,” says Brandon McInnis, Value City Furniture’s Director of Internet Marketing.
To attract customers, Value City Furniture developed a promotional sweepstake that offered prospects a chance to win one of six $2,500 shopping sprees. To help promote this effective yet traditional marketing approach online, McInnis turned to Yahoo!
Working closely with Gabriel Elliott, one of Yahoo!’s search account executives, Value City Furniture crafted a comprehensive online campaign across the Yahoo! Network using Yahoo! My Display Ads with retargeting. Elliot used the display ad templates of Yahoo! My Display Ads to help Value City Furniture develop display creative at no creative development cost. “At first I was skeptical of the value of display,” says McInnis. “But I think a visual representation of our product in an ad is essential to getting people to click on it.”
When customers responded to the promotion, Value City Furniture captured data that allowed the company to prescreen applicants for its private-label credit card offering. It also used the data to retarget visitors (who engaged with the ad but hadn’t yet converted) with additional ads.
Value City Furniture wanted to increase registrations, pre-approved credit applications and in-store sales through its online channel. Using Yahoo! My Display Ads with retargeting, combined with a Sponsored Search campaign, Value City Furniture dramatically exceeded all three of its goals. The company saw its site/sweepstakes registrations increase by 650%! Though the campaign focused on Yahoo! My Display Ads with retargeting, it also included a branded search terms component via Sponsored Search that was vital to its success. Here’s the breakdown:
Yahoo! My Display Ads: When the campaign launched, cost per acquisition (CPA) was $168 with a conversion rate of .93%. Over the period of a month, CPA fell to $29 and conversions leapt to 6.93% through continual optimization.
Retargeting: When the campaign started, Value City was getting a 5% conversion rate, with a CPA of $32. After one month, Value City was getting a 14.5% conversion rate and a CPA of just $12.
Yahoo! Sponsored Search: Yahoo! and Value City Furniture developed a Sponsored Search campaign that included some 200 branded keywords to help promote the sweepstakes and its overall business. It found that display drove search activity with a 168% increase in branded term searches. As a result, the company increased its display budget by 30%.
“From my perspective,” says McInnis, “Yahoo! was instrumental in making this happen. They were always there to help and provide positive suggestions for improving our results. The competition doesn’t do that.”
About Value City Furniture: American Signature, Inc., Value City Furniture’s parent company is one of the largest furniture retailers in the U.S, with 128 stores and 5,000 employees throughout the East, Midwest and Southeast. The company was founded in the 1930s.
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