How Spectra Baby Revenue Continues to Grow 60% Year over Year with Narrow Distribution
It is tempting for brands to consider multiple distribution channels on ecommerce platforms. Intuitively, more distribution channels should mean more opportunities for revenue, but, in actuality, wide distribution often ends with inconsistent listings, inaccurate content, and a downfall of brand image. When combined, the erosion of brand equity ends up hurting sales.
Spectra Baby, a company selling award-winning portable breast pumps, was implementing a wide distribution strategy. They assumed it would lead to revenue growth, but caused many of their listings to have inconsistent, limited, and poor content. It was difficult to keep up with demands of managing so many listings on various digital marketplaces–they lacked the resources and time to focus on all of them. Without clean images, consistent and informative copy, and deep product descriptions for its customers, Spectra was losing sales on digital marketplaces such as Amazon, due to a decrease in traffic and conversions.
Even after realizing a narrow distribution strategy may have been a better option, it was extremely difficult for Spectra to clean up its distribution networks alone. This is where Pattern, a 3P ecommerce accelerator, stepped in and helped grow the Spectra Baby brand and increased profitability.
Wide Distribution Negatively Impacts Spectra Baby
Purchasing a breast pump is a high involvement purchase for parents, as it is crucial to have a quality and reliable product that they can count on. It’s essential for a brand like Spectra to have quality content and clean listings to aid in the research process, move consumers through the funnel, and grow consumers’ trust. Without an ability to control its distribution, Spectra Baby’s brand equity, consumer trust and loyalty was eroding with each product listing.
Pattern Shifts Spectra Baby to Narrow Strategy
After selecting Pattern as their 3P partner, Spectra Baby redirected its distribution strategy using Pattern’s proprietary technology and data-driven insights. By restructuring their seller strategy from wide to narrow, Spectra was able to establish authorized, quality sellers, gain price control, and, most importantly, regain brand control. According to Spectra Baby, “Pattern is nothing short of amazing! They manage your business and brand as if it were their own. They understand data like no other.”
Narrow Distribution Grows Spectra 60% Year Over Year
Since starting their partnership with Pattern in 2018, Spectra’s revenue has grown consistently 60% year over year. Narrowing their distribution network, and taking back control of their brand through winning the Buy Box allowed Spectra Baby’s total ecommerce revenue to grow exponentially from 2018-2019.
Brand Control Increases RoAS to Quality Listings
Quality content improves overall brand image and helped Spectra retain brand control on their listings. After partnering with Pattern, Spectra Baby experienced the following:
- Advertising sales have increased 146% YOY
- Return on ad spend (RoAS) increasing by 27%
- As a result of quality listings and advertising expertise, organic clicks on keyword campaigns have increased traffic by 54.87% compared to 2021.
- Spectra continues to organically rank due to quality content and improved brand image.
Pattern Helps Brands Win with Narrow Distribution
Pattern has the unmatched, proprietary technology, data, and expertise to help brands clean up their distribution network and succeed on ecommerce marketplaces. With a narrow distribution strategy, Pattern’s brand, creative, and advertising experts partner with brands to achieve marketplace traffic, conversion, and grow profitability. Get in touch with our experts to talk more about how Pattern can help you narrow down your ecommerce strategy.