dm drogerie markt

Austrian drugstore dm drogerie markt is the country’s market leader with 396 stores. Its online store features around 14,800 products. The company improved the performance of their online store thanks to a comprehensive overhaul of their product data and images for Google Shopping. Visibility increased by 79%, and the company’s revenue increased by 33%.

About

  • Austrian drugstore dm drogerie markt is the country’s market leader with 396 stores. Its online store features around 14,800 products.
  • Headquarters: Salzburg, Austria
  • www.meindm.at

Goal

  • Improve the company’s visibility and performance on Google Shopping.

Approach

  • A detailed overhaul of their product data, including reworking of brand names, product descriptions, product categories, and images.

Results

  • Visibility: up by 79%.
  • Revenue: up by 33%.

The strongest store brand in the Austrian drugstore industry

dm drogerie markt operates one of the largest drugstore chains in Central and Eastern Europe. dm was founded in Austria in 1976 and now has 390 stores, making it the market leader in the country. The renowned ‘Store Equity Index’ consumer study by market research company Nielsen singled out dm in 2016 as the strongest store brand out of all the brands on the Austrian drugstore market. “The reason behind our success is the fact that, from the beginning, we have always asked ourselves what our customers want to know before they make a purchase,” explains Manuela Schöpfer, Team Leader for Digital Media.

Enhanced storefront performance with Google Shopping

Our clear focus on the needs of our customers is also demonstrated in our online store www.meindm.at. Our aim is to provide the same purchasing experience online as customers receive in our stores. After all, our online store is essentially our largest storefront, plus it is open 24 hours a day, 7 days a week.”

Manuela Schöpfer, Digital Media Team Leader, dm drogerie markt

Since the launch of Google Shopping, dm has been using this channel for sales and marketing.

“For dm, Google Shopping plays kind of a double role in the sense that it is most definitely a shared storefront as well as a store,” says Konstantin Kasapis, Managing Director of the performance marketing agency SlopeLift, the company supporting dm. By implementing a range of optimisations, the agency and client succeeded in considerably enhancing the performance of this marketing channel in 2016. Visibility has increased by 79% and revenue has gone up by 33%.

Optimising product data for Google Shopping

How did dm manage to achieve such a strong improvement in performance on Google Shopping? “We made sure that we were focusing on our customer experience,” says Team Leader Manuela Schöpfer. “Our in-house inventory system delivers a huge amount of data for the product feed, but the advertising copy does not always contain the information that our customers are searching for.” For example, one of the lipsticks that dm sells, features the product brand ‘Happy Sunday,’ but the customer will only search for this exact phrase if they already know about that specific product. If this is not the case and they search for a yellow lipstick, they won't be shown a Shopping ad of the yellow 'Happy Sunday' lipstick. “We are optimising the output data from the inventory system in collaboration with dm,” explains Konstantin Kasapis. The optimisations include:

  • Revising brand names—SauBaer has now been corrected to SauBär
  • Adjusting product descriptions—such as in the Happy Sunday lipstick example
  • Continuously managing and, if necessary, supplementing the information in the product data with reference to Google product categories

Wherever sensible, we added meaningful information to our product data, such as colour, target audience, or quality features (‘organic,’ ‘anti-aging,’ or ‘gluten free’). We arranged our own photoshoots to ensure that we could display high-quality, high-definition product images for each item. Our customers are used to seeing this level of quality from the graphics in our printed ads.”

Manuela Schöpfer, Digital Media Team Leader, dm drogerie markt

The store features around 14,800 products, including around 1,000 fixed low-price items that are marketed under the ‘Immergünstig’ (always low-price) label. dm also takes the opportunity to integrate a custom label of this type into the product data for Google Shopping. dm Managing Director Harald Bauer concludes: “In respect to the fact that we use Google Shopping as a storefront and as a store, choosing this marketing channel makes a lot of sense and we are incredibly pleased with the results.”

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