As Abel Butler, CEO of HealthPost, summed it up:

"With ProfitPeak, we were able to achieve greater marketing efficiency, lower customer acquisition costs, and stronger bottom-line performance."

In the competitive world of e-commerce, it's easy to fall into the trap of chasing vanity metrics. For years, marketers have been fixated on Return on Ad Spend (ROAS) as the ultimate measure of campaign success. But what if the metrics you're tracking don't tell the whole story?

HealthPost, a multi-brand retailer with a wide range of products and an even wider customer base, discovered this firsthand. Their journey with ProfitPeak is a testament to the power of shifting focus from top-line revenue to true, bottom-line profitability.

The Challenge: A ROAS-First Strategy Led to Hidden Costs

HealthPost faced a trifecta of challenges common to many growing e-commerce businesses. First, their customer acquisition costs (CAC) were rising, making it increasingly difficult to scale profitably. Second, managing a broad product range meant dealing with varying margins, making a one-size-fits-all ad strategy impossible. Finally, and most critically, they were over-relying on ROAS to guide their ad spend. While campaigns might have looked good on paper, they often drove sales for low-margin products, leading to inefficient ad spend and a misleading view of their actual financial health.

This over-reliance on a single metric created a host of problems. The marketing and finance teams were working with different data sets and priorities, making strategic alignment difficult. The brand's rapid growth was masking inefficiencies, particularly with their inventory management. Without a clear view of which products were truly contributing to their profit, they were constantly facing "out of stock" on high-demand items, resulting in lost revenue and a negative impact on customer satisfaction. They needed a way to cut through the noise and get a single, trusted source of truth for the entire team.

The Solution: A Profit-First Approach with ProfitPeak

To solve these complex issues, HealthPost partnered with ProfitPeak, a platform designed to help businesses shift their focus from ROAS to profit. The solution was multi-faceted, combining advanced analytics with intelligent automation.

ProfitPeak's proprietary A/B/C/D-class product intelligence was the first step. The tool automatically categorised HealthPost's vast product catalogue based on profitability, not just revenue. This crucial insight allowed the team to identify their "A-class" high-profit products that were the most valuable to the business.

Next, ProfitPeak introduced its unique dynamic tagging tool, which enabled the automatic allocation of budget to the most profitable products. This eliminated the guesswork and manual effort of trying to optimise campaigns across a complex catalogue. Instead of simply pushing products that sold, the ad spend was now intelligently directed toward products that delivered the highest gross profit.

Finally, ProfitPeak's marketing enriched predicative forecasting capabilities were instrumental in solving the out-of-stock problem. By keeping a close eye on demand for A and B-class products, the platform helped HealthPost anticipate needs and ensure these profitable items were always in stock, effectively reducing lost profit and ensuring a seamless customer experience.

The Results: Unprecedented Growth & Bottom-Line Performance

The results of HealthPost's partnership with ProfitPeak were remarkable. The shift to a profit-first strategy delivered significant, measurable gains across the board:

• 120% increase in gross profit on ad spend: This staggering metric proves that focusing on what matters—profit—can unlock incredible growth that a simple ROAS metric would never reveal.

  
  

• 130% increase in ROAS: Even while focusing on profit, HealthPost saw an even greater increase in their ROAS, demonstrating that a smart, profit-driven strategy naturally improves key revenue metrics.

  
  

• Less out of stocks = less lost revenue & profits: By keeping profitable items in stock, HealthPost recaptured revenue that was previously lost, strengthening their bottom line.

  
  

• A trusted source of truth for the entire team: For the first time, marketing, operations, and finance teams were aligned, using a single, unified data source to make strategic decisions.

  
  

• Reduced need for discounting: By driving demand for high-margin products and maintaining sufficient inventory, HealthPost no longer had to rely on discounting to move products, protecting their brand and profit margins.

  
  

The success story of HealthPost is a powerful reminder that while revenue metrics are important, true, sustainable growth is built on the foundation of profitability.