CarParts.com is leaning closely on its new cellular app and its revamped content material advertising and marketing efforts because it seems to increase its gross revenue.
These initiatives round commerce expertise and advertising and marketing are paying off in increased gross sales quantity and decrease buyer acquisition prices, David Meniane, CEO of Carparts.com, stated Thursday (March 7) throughout a quarterly earnings name.
The eCommerce supplier of automotive elements and equipment launched its cellular app in August 2023. Today, the app has greater than 250,000 downloads and accounts for 7% of the corporate’s complete eCommerce income, Meniane stated.
Over time, the app engagement goes to develop the highest line and make advertising and marketing spend extra environment friendly, he added.
“With 80% of our prospects utilizing cellphones to buy their automotive elements, we’re assured that, over time, direct in-app purchases will scale back our reliance on search engines like google and yahoo and efficiency advertising and marketing,” Meniane stated.
Meniane stated throughout the name that the efficiency of the cellular app is so necessary that on each earnings name going ahead, CarParts.com will share the variety of customers, the share of eCommerce income and some other related metrics.
In November 2023, CarParts.com launched a refreshed content material advertising and marketing technique that features a new podcast, a revamped weblog, and a collection of academic and tutorial movies. This content material teaches prospects how to handle their vehicles, and consists of hyperlinks to hyperlinks to merchandise on the corporate’s web site and cellular app.
Historically, the corporate targeted its advertising and marketing investments on Google promoting, Meniane stated throughout the name. However, in 2024, it’s specializing in creating new video content material by itself channel.
“We can already share that within the first two months of 2024, our YouTube views are up to 15 million, a rise of greater than 10 occasions on a year-over-year foundation,” Meniane stated. “We consider over time our personal content material push will assist us purchase new prospects, drive income and decrease buyer acquisition prices.”
During the fourth quarter and monetary 12 months ended Dec. 30, CarParts.com noticed its internet gross sales improve 2% 12 months over 12 months whereas its gross revenue decreased barely, in accordance to a Tuesday earnings launch.
The firm attributed its lower in gross margin in 2023 to increased outbound transportation prices, a shift in product combine and industrywide worth deflation.
The troublesome macro setting, worth compression and inclement climate have additionally led to a sluggish begin in 2024, Meniane stated throughout the name.
As a outcome, the corporate introduced Thursday that it’s eliminating 150 world roles to assist scale back its price construction. The cuts are being made throughout the board, impacting about 15% of company roles and 10% of frontline positions.
“These choices should not made calmly, however we wish to keep agile,” Meniane stated. “We need to shield shareholder worth and realign to the truth of the setting.”
https://www.pymnts.com/earnings/2024/carparts-com-looks-to-mobile-app-content-marketing-to-drive-profits/
