March 22, 2007, 12:00 AM

LampsPlus.com sets a minimum ROI threshold for comparison shopping strategy

LampsPlus.com is making the most of its comparison shopping strategy by using a minimum ROI threshold to determine which items will be supplied to the sites, says Angela Hsu, vice president of Internet marketing.

LampsPlus.com, an online retailer of lamps and home-décor products, is making the most of its comparison shopping strategy by using a minimum return-on-investment threshold to determine which items will be supplied to the sites, says Angela Hsu, vice president of internet marketing.

The retailer decided to limit items offered through competitive shopping sites after finding the return on investment on marketing through such sites was average compared with other marketing initiatives, Hsu says.

“After various testing on product categories and bid prices, we decided to only supply shopping comparison sites with those items that meet a minimum return on investment threshold,” she says. “Also, when applicable, we maximize our spending and return on investment by bidding different on different product categories.”

LampsPlus, No. 158 in the Internet Retailer Top 500 Guide, typically sets a target ROI for its entire marketing campaign, as well as individual target ROIs for search engine marketing, shopping data feed, affiliate marketing, media marketing and other initiatives, she says.

“To reach our shopping data feed ROI, we adjust the bid and assortment accordingly to exceed our target ROI,” Hsu says. For example, LampsPlus.com eliminated a variety of home décor products in the shopping feed that failed to meet the minimum ROI target.

LampsPlus.com works with about 15 major shopping sites.

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