The NRF conducted an in-depth interview with Appliance Zone CEO Jim Allen on his experience as a client of Connexity’s Managed Services program. Since Connexity took over product listing ad (PLA) management, Appliance Zone has seen a 65% reduction in cost of sale.
“The online marketing is responsible for 70 to 80 percent of our entire revenue,” he says. “From Day One I’ve been doing it myself, personally, every day. I wouldn’t even think of turning it over to our most senior employees. Just based on my knowing the products and the customer base, I honestly did not think an outside company could do it any better than I could do it.”
“The results have been excellent. Our margins are much better — our cost of sale has dropped 65 percent since Connexity started handling the marketing, [Allen says]. The cost of what they charge is just such a worthwhile investment.”
“This space is moving so quickly, particularly with the search engines updating their algorithms, that it’s extremely difficult to keep up with. We need somebody in the industry who understands those changes and can help our business take advantage of them. That’s what we get from Connexity.”
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