Discounted Wheel Warehouse sees 30% monthly revenue growth with Grips

Founded over 20 years ago, Discounted Wheel Warehouse was a pioneer in the online retail of wheels and tires. They were the first to offer both products together in a customizable format, distinguishing themselves from competitors like Tire Rack, which initially only sold tires. They quickly grew their business through SEO and expanded into different product categories, offering customers a unique shopping experience with tools like the Wheel Visualizer, which allows users to see how tires and wheels look on their vehicles.

Today, they boast the largest selection of wheels online and a wide range of tires, passing savings directly to customers through their discounted pricing model.

Over the past few years, Discounted Wheel Warehouse faced several key challenges:

Outdated Infrastructure

Operating on an e-commerce platform from 2004, they lacked access to critical data, such as conversion rates, and were using a broken analytics setup. This made it difficult to track performance and optimize their strategies effectively.

Poor Resource Allocation

Without clear data, their marketing efforts were inefficient. They unknowingly invested heavily in wheels, a declining market, while missing opportunities in the growing tire segment.

Shifts in Consumer Behaviour

With a slowdown in demand for higher-end products and a rise in demand for cheaper, tier 4 tires, Discounted Wheel Warehouse struggled to meet the market’s changing needs. They were also unaware of pricing inefficiencies, leading to profit loss.

Key offerings for Discounted Wheel Warehouse

To address their challenges, Discounted Wheel Warehouse turned to Grips, which provided essential data insights and competitive intelligence to optimize their operations.

• Grips gave Discounted Wheel Warehouse clear visibility into their competitors’ strategies. The platform enabled them to track competitors’ conversion rates (CVR), ad spend, and product focus, which was crucial for benchmarking their performance. This deeper understanding helped them identify gaps and areas where they could improve, such as misallocating resources toward underperforming categories. As a result of this, they developed Wheel and Tire packages to fulfil customer assortment demands, shifting focus away from solely wheels.
• One of the most valuable features Grips offered was SKU-level data, allowing Discounted Wheel Warehouse to dive into product-level performance. This insight enabled them to refine their pricing strategy by comparing how their products stacked up against competitors. Grips revealed instances where they were offering unnecessary discounts, which helped them better align pricing with market demand.
• Grips helped Discounted Wheel Warehouse make smarter decisions about how to allocate their marketing resources. By revealing that the wheel market was in decline, Grips enabled them to shift their focus away from less profitable categories and prioritize areas with higher consumer demand, such as tires. This ensured their marketing spend was directed where it would have the most impact.

“Grips helped us realize our conversion rate was lower than peers, which became a big focus for us.”

30% monthly revenue growth

Leveraging Grips’ insights, Discounted Wheel Warehouse experienced a steady 30% month-over-month growth. Out of this, 25% of their growth was directly attributed to Grips’ data-driven guidance. By refining their marketing strategies and focusing on the right products, they were able to make the most of previously untapped opportunities in the market.

Increased conversion rates

Grips helped them identify that their conversion rates (CVR) were lagging behind competitors. This prompted a strategic focus on conversion optimization, resulting in stronger performance and contributing to their overall growth.

Grips’ SKU-level data exposed areas where Discounted Wheel Warehouse was offering discounts unnecessarily. After adjusting their pricing strategy, they were able to increase their profit margins while maintaining competitive pricing, ensuring better returns.

Working with Grips has been a game-changer for us. It’s given us visibility into our competitors’ performance and helped us optimize our pricing and marketing strategies. The SKU-level data is a standout feature, allowing us to see where we were underpricing and adjust accordingly. We’ve grown 30% month-over-month, and we’re confident that Grips played a big part in that success.