We started Elevaate based on the idea of moving off-line trading mechanics online. Brands such as Coke use end caps in physical retail to drive sales. It felt like an obvious, albeit missed opportunity online. Allow brands to promote products within category to drive sales online.
Yet, we have always been interested in how we can help to overcome the limitations of physical retail.
Retail stores try to create useful shopping journeys. You’ll find all the ice cream, the soft drinks, and pizza’s together in a supermarket. Products are grouped by type, and this make sense. This facilities a efficient shopping journey and it is necessary in a physical store. But, it leaves little room for product discovery or lifestyle driven shopping journeys. There are also practical limitations. For example putting a freezer unit next to ‘hot puddings’ in store is challenging.
Online, these limitations do not exist. Search and category driven shopping means customers have an efficient way to find products. Products can also be placed in many locations. There are no empty shelves or stock monitoring and replenishment issues.
By creating easier, lifestyle driven shopping experiences brands are able to increase sales.
Working with brands, we've understood how to drive sales by promoting across category. We have also seen how we create standout, and reduce the reliance of pricing as a mechanism to drive volume.
These are our three key findings
- In some cases we have seen higher sales volume than within their designated category
- CPM rates can be up to 72% cheaper than core categories
- High ROI of up to 35-1