Matas & Precis: Unlocking Sustainable Omnichannel Success and 18.5% Online Revenue Growth with AI and First-Party Data

Strategi

The challenge: The paradox of market leadership:
Matas is the leading beauty and health retailer in Denmark, supported by a highly engaged customer base of more than two million members in its loyalty program ‘Club Matas’. While this strong market position provides a solid foundation, it also presents a unique set of challenges.

The Danish market is relatively small and highly saturated, leaving limited room for expansion through new customer acquisition alone. At the same time, competition has intensified significantly. Digital-native e-commerce players are entering the market with agile business models, aggressive pricing strategies, and seamless online experiences. In parallel, established global brands and marketplaces are expanding their footprint in Denmark, offering extensive product assortments and competitive pricing that appeal to price-conscious consumers.

As a result, Matas faces mounting pressure on both market share and customer loyalty. Traditional growth levers, such as acquiring new customers, are constrained by Denmark’s population size and the already high penetration of the brand. Therefore, the central business challenge is not simply growth, but rather profitable growth within a limited market.

The strategy: From acquisition to loyalty-led growth:
To remain competitive, Matas must unlock value from its existing customer base. This requires identifying and activating untapped growth opportunities among current customers: through increased purchase frequency, higher basket sizes, cross-category engagement, and stronger loyalty activation. The ability to leverage first-party data from Club Matas members is critical in driving smarter segmentation, more relevant communication, and long-term customer lifetime value.
In short, growth must come from deeper customer relationships rather than broader reach.

The goal: Growing digital revenue by 20% YoY:
Despite intensified competition from global and local players and the limitations of the Danish market, Matas has set ambitious performance targets. Building on several years of strong growth, the company aims to sustain the same level of revenue growth moving forward. More specifically, Matas wants to continue using digital marketing as a lever to grow market share without compromising on profitability.

Crucially, this growth ambition must be achieved while maintaining a stable ROI in online channels and operating within a budget index of 120. Furthermore, the strategic focus remains exclusively on the Danish market, reinforcing Matas’ commitment to strengthening and defending its existing stronghold.

The objective is therefore clear: drive continued revenue growth, preserve marketing efficiency, and maximise returns by extracting greater value from an already mature and competitive market landscape.

Løsning

In a saturated landscape, Matas has sustained a competitive advantage by prioritising consumer relevancy. Given the breadth of the Matas portfolio, the core challenge lies in precision: delivering the right product at the optimal moment of the buyer’s journey.

Matas and Precis have focused on three areas to drive efficient growth:
- Data architecture and scalable activation
- Advanced attribution and incremental growth in marketing investments
- AI-powered product optimisations

While Google Ads and Analytics have been the core focus of the collaboration between Matas and Precis, several of the solutions have touched multiple channels, such as advanced attribution.

Data architecture & scalable activation:
The foundation of this strategy is a bespoke marketing data warehouse hosted on Google Cloud. Centralising cross-channel sales data has transformed Matas’ raw information into an actionable asset for both advanced analytics and real-time activation.

Part of this solution has been to dynamically change headlines across more than 30,000 ads to control messaging in specific periods using Google Cloud in conjunction with Google Ads. This is done on a bi-weekly basis.

The solution has also allowed Matas and Precis to create specialised dashboards based on data insights from Google Merchant Center, which allows us to track competitor movements and pricing.

Advanced attribution & incremental growth:
By integrating AI and machine learning through Alvie - Precis’ proprietary attribution engine - we have shifted from basic spend management to value-based bidding. This allows Matas to funnel investment into high-incrementality platforms.

Crucially, this growth is not siloed to e-commerce. By funnelling offline transaction data from Matas’ 250+ physical locations into Google Analytics, we have bridged the gap between digital intent and physical sales. This unified data stream empowers digital bidding engines to optimise for the true customer lifetime value, rather than just online conversions.

AI-powered product optimisations:
Leveraging the Google Gemini model, we implemented an automated large-scale audit of Matas’ 30,000+ SKUs. This enabled:
- Dynamic Attribute Enhancement: Automatically updating product features to align with shifting search intent using Google’s AI model Gemini to update attributes based on the website for the specific product.
- Strategic Segmentation: Designing custom data solutions to prioritise high-margin private labels to make sure these are prioritised in the online auctions whenever a user makes a generic, non-product-specific search query.
- Basket Expansion: Utilising data-driven insights to increase Average Order Value (AOV) by intelligently surfacing the expanding assortment to the most relevant users.