Like many brands dealing with COVID-19, DTC jewelry brand Mejuri was forced to focus intently on its online operations this year. The company decided to invest in technology that would help it harness the power of data to improve its customer insights and the shopper experience.
“At Mejuri, we view data as a strategic asset, especially when it helps us create more compelling customer experiences,” said Majed Masad, COO at Mejuri in an interview with Retail TouchPoints.
The brand deployed a SaaS module from SoundCommerce, dubbed SoundProfit 360, that provides real-time order tracking and shopper-level profitability insights. The ability to track “on the fly” has helped Mejuri reduce the time and effort required to execute operational and financial decisions that benefit its customers.
“With COVID and recent market dynamics, tracking variable costs in real time becomes even more important. We’ve seen swings in our cost of goods sold along with our digital media customer acquisition costs,” said Masad in a statement. “Shopper behavior is also less predictable today, requiring more creative experimentation in merchandising and marketing. SoundCommerce allows us to track the exact impact of these variables on our profitability as we make real-time decisions regarding assortment, promotions, inventory, marketing and fulfillment.”
Like many retailers, Mejuri acquires and engages its customers from a diverse set of marketing channels, including Facebook, Instagram, Pinterest and Google. Mejuri sells through multiple channels, including ecommerce, call center and physical store locations, processing orders for fulfillment across multiple locations and a variety of shipping methods.
“SoundCommerce tracks variable marketing costs, order- and item-specific cost of goods sold (COGS), and variable fulfillment and shipping costs to provide cross-departmental decision makers at Mejuri with real-time insights into gross margin and contribution profit as the business operates,” said Eric Best, Founder and CEO of SoundCommerce in an interview with Retail TouchPoints. “One additional output of the SoundProfit 360 module is lifetime contribution profit for each individual shopper that Mejuri engages — updated as new campaigns run, new orders convert and new shipments flow over time. This customer-level profit insight can inform every business decision, from where to acquire the highest value customers to how best to serve them in a retail store and at the residential doorstep.”
SoundProfit 360 offers granular variable revenue and cost accounting of:
- Discounts and markdowns;
- Cancellations, returns and refunds;
- Product and category cost of goods sold, including customization and personalization costs;
- Digital marketing campaign costs of acquisition and retention;
- User credits, gift cards and other stored credit; and
- Shipping revenue and cost for each unique order and customer — processed as customers shop and orders flow.
The technology groups variable cost and profitability data by customer in order to track shopper-specific contribution margins to customer lifetime value (CLV). The computations incorporate the net costs of discounts, returns, landed COGS, acquisition and retention marketing spend, and fulfillment and delivery.
“SoundProfit 360 collects and processes revenue and cost data in real time from every system across the enterprise,” explained Best. “It builds a unique profitability waterfall (an accurate profit and loss statement) for every distinct product, order, shipment and customer. It stages this unique data for flexible application against any use case or downstream system where profit can be used as a decisioning input.”
This data then helps brands and retailers like Mejuri to:
- Analyze real-time product, order and customer contribution margin and profits;
- Act on real-time awareness of COGS and gross profit by product SKU variation, including promotions and markdowns;
- Track and allocate digital marketing spend by source, medium and campaign to exact order and customer IDs — with support for flexible and custom attribution modeling; and
- Reconcile actual fulfillment and shipping costs to unique orders, shipments and customers.
Mejuri uses the real-time tracking to swiftly, and fluidly, pivot strategies. “A key capability is profit margin impact reporting that takes us beyond revenue analysis [to look at] specific item mix, marketing campaigns and shipping methods at the order level,” said Masad. This granular data also makes it easier for the retailer to analyze its business by channel and international geography.
Retailer Plans to Use Solution Across Multiple Channels
While COVID-19 made Mejuri focus heavily on ecommerce and customer fundamentals this year, its new and existing retail stores are coming back strong, said Masad. “We expect to expand our analysis into areas like cross-channel merchandising promotions performance and inventory (allocation) by channel and location as we move into 2021.”