CASE STUDY
Kipukauppa
250.000€ more revenue with optimized markdown pricing
Kipukauppa.com, a leading Nordic provider of pain-relief products, were looking to improve their marketing ROAS and optimize pricing. The company is selling seasonal products, like barefoot sneakers, and needed a solution that offers a possibility to manage the product lifecycle to optimize seasonal inventory levels. With a turnover of €3.2M in 2022 and steady growth, they were hoping to find an ideal pricing solution for their Shopify Plus store. To start demand-driven pricing approach Kipukauppa.com found Sniffie, as an ideal partner for their Shopify pricing. The company is also well-known for their data-driven, effective and creative marketing approach.
- Fashion
- E-commerce
- Global business
THE CHALLENGE
In the highly competitive and seasonal market of pain-relief products, Kipukauppa.com aimed for continuous growth, but more importantly to do profitable and responsible business. By optimizing their seasonal products they were looking to ways to minimize excess stock and serve their customers during the whole lifecycle of the products.
Their main challenge was to understand the perfect discounted price point to clear out seasonal end of sales and low-selling items from their inventory while maximizing profitability and ROAS.
THE SOLUTION
After a comprehensive review and discussions with Sniffie team, Kipukauppa.com found their match in Sniffie. With Sniffie’s advanced pricing optimization features and native Shopify Plus App, it be came obvious that the solution Kipukauppa.com needed, was Sniffie.
The game-changer was Sniffie’s markdown pricing feature. It offered both the scientific and strategic approach to discounting end-of-season products and turning low sellers into attractive deals for their customers. A challenge that most fashion, clothing and other seasonal product merchants face.
THE RESULTS
The first markdown pricing campaign alone was a roaring success:
- Clear understanding: By planning the markdown campaign from marketing messages to markdown discounts, the team were able to plan everything from the timeline to profits and have a clear forecast on results.
- Sales Boost: Products that once gathered dust were now flying off the virtual shelves. The initial campaign brought in an astounding €250,000 in sales, with good profitability.
- High ROAS: Kipukauppa.com didn’t just achieve more sales; they attained them cost-effectively. The return on ad spend (ROAS) was significantly higher than previous campaigns due to their effective video ad campaign.
“With Sniffie, we were able to clear our inventory and furthermore we also achieved a remarkable boost in sales. It proved to be the perfect transparent solution for our Shopify Plus store. By combining scientific AI forecasting with our marketing team creatives resulted an excellent combination.”
Miko Flinkman
CEO & Owner, Kipukauppa.com
CONCLUSION
For Kipukauppa.com, as for a large number of other Shopify Plus merchants, Sniffie was more than just a pricing tool; it was a game-changer. By intelligently optimizing prices, and showing the optimum discount campaign forecasts, Sniffie enabled an effective markdown strategies. Kipukauppa.com transformed their sales trajectory, turning challenges into milestones. In the competitive eCommerce landscape, the right pricing solution can make all the difference, as Kipukauppa.com’s experience clearly illustrates. By understanding the real demand Shopify Plus merchants like Kipukauppa are able to set profitable prices, and make happy converting customers.
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