Conversion of Google Shopping campaigns to profit-based clustering for Erwin Müller Versandhaus GmbH.

Traditional textile wholesaler Erwin Müller was founded in 1951, and is still proudly family-owned, employing approximately 450 staff.

As a supplier of home and household textiles, Erwin Müller offers high-quality products from various categories.

Case in Numbers

92 % total increase in sales with Google Ads
over 90 % increase in profitability in Google Shopping

There is no way around Google Shopping campaigns in e-commerce. Compared to search campaigns, there are fewer control options in the Shopping area.

At Erwin Müller, the campaigns achieved steadily growing sales and good ROAS values (Return on Advertising Spend), but not for all products.

The reason: the existing campaign structure was optimized for the products that sold best. However, the profitability of the individual items was not sufficiently taken into account.

Our challenge was to identify which products offer the greatest possible value on the customer side.

Together with Google and Erwin Müller's marketing team, we developed an innovative strategy. We made the data basis smarter in order to guarantee more profitable campaigns. The key idea was not to change the algorithm, but to adapt the data to which the algorithm refers.

An internal “product-scoring” system from Erwin Müller evaluated products based on various criteria, including sales performance, margin, cancellation rates, stock levels and customer ratings.

Each product is given its own ranking value, which is updated regularly. As the scoring is available at the product level, it provides the perfect base for our shopping campaigns: a targeted clustering of the products in the feed, according to the Shopping for Business Objectives strategy (SFBO).

Our aim was to further increase the group’s high share of sales with an adjusted campaign, and targeted ROAS strategy.

As the margins and cancellation rates of these products in particular are significantly better than those of the other two groups, Erwin Müller Versandhaus GmbH can generate significantly more profit per item sold.

Thanks to our focus on products with higher margins, these not only recorded a significantly higher number of clicks, but were also purchased much more frequently.

The click share of the High Group was thus increase by more than 50%, while the sales share rose by almost 30%. The margin in the shopping area improved by an astonishing +100% points, in comparison to the rest of the store.