Merchants Benefit from Choices Based on Performance Data
The IRP Service Marketplace may have been a new innovation when launched in 2023 - but it quickly transformed the fortunes of IRP merchants who have traded services.
The Service Marketplace uses market forces to drive competition and choice. Gone are the days of guesswork when merchants took the word of a provider regarding their own performance. Merchants now make rational decisions based on data.
So how has the Service Marketplace performed since its arrival? Let’s hear from merchants who traded old services for new ones on the marketplace…
Electrical World - A Change of Agency
Electrical World is located in County Fermanagh, Northern Ireland - but their remote location was no barrier to their ecommerce ambition of owner John Coalter. John commented, "We wanted to grow our business, but knew that our existing agency didn’t align with our growth ambitions. We turned to the IRP Service Marketplace letting agencies compete for our business."
“A Service Marketplace is the missing part of ecommerce.”
John Coalter, CEO Electrical World
RESULTS: > 500% YOY GROWTH
“We used to think that we had to replatform to grow sales. We went through a costly process of running IRP and Shopify sites at the same time. What we learnt is that the right strategy, partnerships and service providers determine sales growth and profit.”
“You need to build a team of like-minded individuals who understand profit and loss, where you want to be and how to get there. It’s easy to throw money at generating traffic, but when costs get out of control, profits evaporate. You need people who know how to generate growth and control cost.”
“Electrical World were sitting on a big opportunity. It sounds incredible but the Service Marketplace has helped us achieve over 500% YOY sales growth in a few short months.”
“It is now obvious that measurement and competition make everyone better - for me people have to perform or they are replaced it’s as simple as that. I’m positive about the future - Electrical World will continue our rapid and sustained growth to match our ambition.”
Jonzara - A Focus on Traffic Spend
A family business since 2008, run by Jonathan McCann, has seen the ups and downs of the fashion retail over the years, including the Covid bounce and dip that followed. In challenging times for all in the fashion business Jonzara took stock on where they were and decided to plan for the future. They wanted to refocus the business around growth but weren’t in a position to grow without first stabilising profitability.
“Spending 1% less on PPC transforms net margin.”
Jonathan McCann, Owner Jonzara
RESULTS: SALES UP 60% & CPA DOWN 20% TO 8%
“CPA was way out of control and spiked at 20% and we weren’t profitable”, says Jonathan.
“In the fashion retail returns are a large part of the business, we used the IRP Platform to identify top performing, high margin, lower performing brands with low returns and to build out a marketing strategy. We also had a problem with high traffic rates but poor conversion, it had to be the correct balance of traffic, AOV and conversion. It had to be the right product at the right time at the right price."
"We needed the right team to make that happen. I realised that I needed to spend more time understanding traffic spend, it’s easy for costs to get out of control without even knowing it, especially when 50-60% of sales come from PPC.”
“Since changing Agency sales are up over 50% and our CPA has never been lower. We’ve focused on the right traffic. Return rates are down, because we’re bringing the right traffic. We use the Service Marketplace to benchmark and the team is closely aligned to what is going into and out of the bank account. That’s very important because we can’t grow unless sales and costs are aligned.”
“Spending even 1% less on Google PPC may not have a big impact on turnover, but will make a world of difference to the end margin. Profitability is coming from our focus on digital marketing.”
Tinney’s Toys - A New Agency Partner & PPC Provider
Recently shortlisted for Best Online Toystore in Ireland - Tinney's Toys are a retail business with a rapidly growing online store based in Donegal - with all the challenges that entails for the owner and the staff.
“We knew we had the right ecommerce platform with the IRP, but the right Agency partner was the missing piece. The Service Marketplace came along at the right time for us. Not all agencies are the right fit for merchants like us. I needed an agency that could understand my business and help us and to put the right tactics in place.”
“The marketplace gave me the visibility I needed to make the right partner choice. Providers had to bid to win my business, they had to step up with a proven track record before I considered them.”
“Having choice means I don't feel dependent on any company.”
Liam Tinney, CEO Tinney’s Toys
RESULTS: SALES UP 35% & TRAFFIC COSTS STABILISED
“Having the right partners is critical in ecommerce - I can’t stress this enough. Our new agency partner has given us confidence to invest and grow the business. I’ve seen my sales increase and my traffic costs stabilise. The Service Marketplace has put the business in control. We are optimistic about the future.”
Conclusion
A Service Market is the missing part of ecommerce. Trading is not just selling products online - it is also about trading services based on performance. It is not so different from physical goods - merchants select services based on profit.
The Service Marketplace exposes everyone's contribution to profit and gives merchants the power to build a team that delivers results by choosing the right providers.
At this stage in ecommerce - only the misguided or foolish believe success is measured in anything other than sales, margin and profit.
