By the numbers:
- 77% increase in YOY revenue
- 50% reduction in Advertising Cost of Sales (ACOS)
- 470% YOY growth in orders
Initial Challenge:
British tool wholesaler Draper Tools has been in business since 1919. As a family-owned business with over 100 years of experience, Draper Tools has developed a reputation as a trusted and enduring entity in the industry. They prioritize maintaining strong relationships with customers, leveraging their longevity to establish trust and reliability.
Recognizing the evolving landscape of retail, Draper Tools decided to expand their reach through online sales channels as an omnichannel wholesaler in 2021. While the additional sales volume was promising, the cost of acquiring customers quickly exceeded a comfortable level. Internally, Draper teams faced capacity constraints and lacked familiarity with the complexities of digital marketing. In early 2022, they decided to reach out to the experts at Rithum to help manage their digital marketing and retail media. The decision quickly paid off.
The Result:
Within six months of partnering with Rithum, Draper Tools witnessed a remarkable transformation in their online business. Advertising Cost of Sales (ACOS) dropped dramatically, while revenue and profitability jumped. How? Rithum’s Managed Advertising services team quickly reigned in advertising costs while still delivering improved performance. In the first half of 2023, ad costs were down 50% while revenue generated from advertising soared by 77%. Order growth has also exploded, which Draper Head of National Accounts Samantha Brindle says is a testament to the value of the combined team.
“With Rithum, we are collaborating as one team and focusing on the same things, an approach that has positively affected our growth trajectory.”
Customer Insights and Recommendations:
Brindle emphasized the collaborative and transparent nature of Draper Tools’ relationship with Rithum. They underscored the importance of regular communication to discuss updates and ensure alignment with Draper Tools’ evolving business objectives.
Draper Tools Head of Marketing Sarah Hartland says the partnership with Rithum provides a safe environment for experimentation, allowing the teams to test and refine strategies collaboratively. When asked how she would advise businesses considering Rithum’s solutions, she said to “to trust the process and foster a relationship built on mutual understanding and support.”
While Draper Tools experienced rapid results, they also stress the importance of patience in certain aspects of digital marketing strategy implementation. Some initiatives require time to yield optimal outcomes, highlighting the necessity of a long-term perspective in driving sustained growth.
Conclusion:
The case of Draper Tools exemplifies the transformative impact of strategic collaboration in the realm of digital marketing and retail media. By entrusting their advertising endeavors to Rithum, Draper Tools not only mitigated cost escalations but also achieved substantial revenue growth, positioning themselves for sustained success in an increasingly competitive market landscape.