Flooring Case Study: Leveraging Marketing and Technology for Growth

Date: February 2025

Abstract

In the evolving landscape of private equity, value creation extends beyond traditional financial engineering and operational improvements. This white paper examines the transformation of a flooring business through strategic marketing investments and technology enhancements. By integrating best-in-class marketing automation, optimizing digital channels, and leveraging data-driven decision-making, the company achieved rapid growth and improved efficiency. This case study highlights methodologies for assessing marketing investments, aligning them with business objectives, and measuring their impact on revenue and profitability.

Introduction

Traditionally, portfolio companies within private equity have focused on cost-cutting and operational improvements as key drivers of value creation. However, in a highly competitive consumer landscape, marketing and technology play a pivotal role in scaling businesses and enhancing profitability.

This white paper explores how a flooring company overcame challenges related to outdated marketing systems, lack of automation, and inefficient digital strategy. By modernizing its marketing infrastructure, optimizing media spend, and implementing data-driven customer engagement, the business unlocked hidden value and accelerated its growth trajectory.

Challenges & Initial Conditions

Before the transformation, the company faced multiple roadblocks:

  • Marketing Systems & Data: Legacy ERP/CRM system that lacked automation, integration, and reporting capabilities.

  • Customer Engagement: No clear view of the customer journey, limited tracking, and absence of a structured reputation management program.

  • Digital Strategy: Poor media spend optimization, minimal attribution modeling, and no structured conversion rate optimization (CRO).

  • Competitive Positioning: Lack of differentiated value propositions, outdated offers, and no structured A/B testing framework.

The Transformation Process

A structured, technology-led approach was implemented across key pillars:

1. Marketing Technology & Automation

  • Integrated HubSpot CRM to streamline marketing operations and enable personalization.

  • Developed marketing dashboards to track KPIs and performance metrics in real-time.

  • Established automated workflows to improve lead nurturing and conversion.

2. Customer Experience & Reputation Management

  • Mapped the complete customer journey to enhance communication and engagement.

  • Implemented Birdeye reputation management, leading to significant improvements in online reviews and customer perception.

  • Created structured re-engagement campaigns to maximize customer lifetime value.

3. Digital Advertising & Channel Expansion

  • Shifted from a broad, inefficient ad strategy to a data-driven, segmented approach.

  • Expanded marketing efforts into new channels, including:

    • Pay-Per-Lead (PPL)

    • Affiliate marketing

    • Retargeting

    • Direct-to-Consumer (D2C) initiatives

  • Implemented structured A/B testing to optimize messaging and offers.

4. Conversion Rate Optimization (CRO) & Sales Enablement

  • Enhanced website user experience with better design, faster load times, and optimized call-to-action placements.

  • Introduced aggressive testing frameworks for landing pages, email marketing, and ad creatives.

  • Improved sales funnel efficiency through better lead qualification and automated follow-ups.

Results & Impact

The transformation led to significant improvements in:

  • Increased Lead Volume: Higher inbound inquiries and stronger engagement.

  • Lower Cost-Per-Lead (CPL): Improved targeting and spend optimization reduced acquisition costs.

  • Higher Sales Conversion Rates: Enhanced customer experience, CRO efforts, and structured re-engagement campaigns led to increased close rates.

  • Stronger Competitive Positioning: Differentiated value proposition and improved brand reputation.

Key Takeaways for Private Equity Firms

This case study highlights several strategic insights for private equity firms looking to maximize value through marketing and technology investments:

  1. Modernize Marketing Infrastructure – Implement scalable CRM and automation tools to enhance efficiency.

  2. Optimize Digital Strategy – Use data-driven insights to refine media spend and expand into high-ROI channels.

  3. Leverage Competitive Intelligence – Understand market positioning and develop differentiated offers to improve conversion rates.

  4. Invest in Reputation Management – Enhance brand perception through structured reputation-building initiatives.

  5. Focus on Continuous Optimization – Implement ongoing A/B testing and performance tracking to sustain long-term growth.

By integrating these strategies, private equity firms can accelerate portfolio growth, improve profitability, and drive sustainable competitive advantage.

Conclusion

The flooring business transformation exemplifies how private equity firms can drive value beyond financial engineering by focusing on marketing modernization and technology enablement. Companies that invest in digital strategy, automation, and data-driven decision-making are better positioned to achieve long-term, scalable growth.

About the Author

Lee McCabe is a seasoned marketing strategist specializing in integrating marketing investments within private equity portfolios. With extensive experience in both finance and marketing, Lee McCabe helps private equity firms optimize their marketing strategies to achieve superior ROI and sustainable growth.

For more information on how to treat marketing as an asset class and integrate it into your investment strategy, please contact Claymore Partners.