CUSTOMER ACQUISITION UP 36% ON THE SAME MARKETING SPEND

CUSTOMER ACQUISITION UP 36% ON THE SAME MARKETING SPEND

To reach incredible growth you need high-quality, accurate data you can rely on. Roivenue automatically processes data from all marketing channels and e-shops and facilitates (makes simpler) important decisions.

 

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Pavlína Louženská                                                               
Marketing Director, ZOOT a.s.                    

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It’s a fact, e-shops and e-commerce businesses invest heavily in customer acquisition. The key to getting your acquisition spend right – efficient, profitable, nimble, data-driven – is to look at one metric: Margin Return on Marketing Investment (mROMI), the go-to metric for the entire industry.


ZOOT.cz, a user-friendly fashion and design e-shop, had an ambitious idea. We were tasked to bring in as many new customers as we could. The result was quite positive. ZOOT.cz increased acquisitions by 36% and kept its marketing investment in client acquisition at a positive zero.


Here’s how we got there.

 

Challenge: Acquire as many new customers as possible
The big picture was that ZOOT.cz wanted as many new customers as possible at the lowest possible cost. To do this, we used Roivenue to unify all of ZOOT.cz’s data streams allocated between the internal marketing team and external marketing and media buying agencies.

Our solution: Setting a limit price for acquisition
Based on ZOOT.cz’s data, we were able to predict Customer Lifetime Value (CLV). We used this value to set a ceiling for customer acquisition costs. This limit was our guiding principle for how marketing investments were managed. Investments to specific channels were set up to maximize mROMI. Some channels and campaigns were reduced, and other were strengthened, according to their real contribution toward customer acquisition. Using Roivenue, and in tandem with the ZOOT.cz team, we evaluated and adjusted the online marketing budget distribution several times monthly.

The result: Price of acquisition is covered by the margin
ZOOT.cz increased weekly turnover by 40% and new customers number by 36%. Its marketing budget is at 180% of the original spend. Because we were able to keep mROMI at positive zero, all of these gains were made with no negative expenditures or costs to the business.

Need to get more customers and get your marketing investment right? Get in touch!

 

Topics: Case Studies

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