Retailers lack an accurate real-time view of sell-through performance. Instead, they’re relying on periodic updates of batched Sales data, and are often unable to understand the impact of marketing investment on Sales Performance. This can lead to large number of high discount Sales outcomes, unwanted pressure on warehousing, artificial product contribution driven by marketing investment, and OOS outcomes on best sellers.

With ROIH, Merchandising data is enriched with real-time sales performance to establish the true salability of individual SKUs. The Marketing benefit from merchandising prompts that help them to tailor marketing execution in order to maximize the success of individual SKUs.

"New Arrivals" refers to products that have been recently added to your inventory. These items might not get as much attention from platforms like Meta and Google because they lack a past marketing record. Algorithms usually favor products with a history of successful sales. These products have already been in the inventory for X days and have rarely been promoted. This can heavily affect STR and their future success. ROIH gives you the tools to protect those Product Launches and focus your marketing budget from day 1.

Create a segment for these products and launch a separate campaign dedicated to them. This newly established Product Set will be continuously refreshed, consistently allocating budget to Low STR + New Products. As these items enhance their STR (by your marketing efforts), they will transition to a different segment which triggers the application of a new strategy. Let's take a look at what we can do next.

Read more about New Arrivals here.

These are still considerably young products but are selling out much faster. We consider these your "Trending Products" and they offer amazing scaling opportunities.

By providing support for these products at the right moment (especially when they're new and showing promising performance), you can leverage them as avenues for scaling up. This approach ensures optimal utilization of your marketing budget to yield the best possible results.

Save this segment and establish an automatically updated Product Set that consistently directs the biggest portion of your budget towards these products. When they move beyond the "New Arrivals" phase and become more established, you can implement other strategies. Let's explore further.

As products get older and become well known in your inventory, they'll start selling out regularly without needing much paid advertising. To protect your profits, you can stop spending money on promotion for these products. Instead, promote them more in your newsletters or other non-paid channels. Focusing less budget on products that sell well without extra advertising helps you become more profitable.

Save this Segment as High STR and share it with your colleagues in other marketing or commercial departments. Commercial teams can make sure that these precious products are always in stock. Marketing teams can help you with non-paid promotion of these products without spending your marketing budget.

Even the best performing products can stop trending or fall out of season. Their STR tends to fall back to Low as they become older. But as these products are still part of your inventory, you need to make sure that they will get sold. ROIH allows you to focus on these products and apply separate strategies and spend levels.

Your colleagues on Commercial teams often identify these products very quickly and put them on sale. Even though you did everything you could in the previous product life stages to get them out of your warehouse, a few pieces stayed and now they must be discounted. Discounting negatively affects your profitability, but once it's discounted then your goal should be to not affect your profit even further.

Discounted products are loved by algorithms and your customers. They often offer very good marketing results and plenty of quick conversions. But as their margin is now lower, you have a smaller space to operate with your marketing spend.

Read more about discounted products here.

Create a segment of these products and promote it in a dedicated campaign. We suggest reducing your spending limits and setting higher ROAS targets to make up for the profit reduction due to lower prices. This approach helps you to sell out products faster while safeguarding your profit margins.

Mandatory: Sell-through Rate per SKU (% or stock in, stock sold)

Optional: Product Age (we can calculate this on our end, but it takes a long time to gather history, so only suitable for specific product strategies)