Recommendations based on ROIVENUE’s data-driven attribution modeling saved Econea over 15% of its total monthly marketing budget during the first wave of optimization. By the end of this case study, you’ll see how they were able to increase marketing profitability by 40%.
The Client
Econea is an e-commerce brand from the Czech Republic focused on selling ecological goods – sustainable, environment-friendly products for daily use. Econea is not only catering to the growing number of environmentally conscious consumers bringing eco-transformation to the mass market, but is also leading the way in digital transformation. With these efforts, the visionary e-shop of young founders has already become a beloved brand and a leader in its category.
The Challenge
The company has grown rapidly in the last few years. They’ve made the move from start-up to established and fast growing e-tailer. Climbing it’s way up the marketing maturity pyramid, the time came for them to start systematically driving their growth, and making decisions based on advanced data. Econea chose ROIVENUETM as their partner to help them with data integration and attribution, including integration of internal systems data which allowed their marketing department to optimize marketing based on pure profit.
The Solution
After initial attribution analysis within ROIVENUE, we found that Facebook Business – the channel with the largest investment, had a negative Return on Marketing Investment (ROMI) according to a Markov first order attribution model.
Previously, with only the perspective offered by last-click attribution, Econea marketers could not be sure of the precise contribution of the channel. They were hoping that along with last click conversions, Facebook ads were helping enough other conversion paths to make its high spend worth-while.
Now, they were sure that this channel was over-invested.
Budget cuts in Facebook Business channel were thus recommended and executed. The result was a growth of ROMI in weeks 26-29. Revenue stayed at the same level while ROMI reached above one, signifying a positive return on investment. The overall effectiveness of the Facebook channel was improved and savings were calculated for 15% of the overall digital marketing budget.
Other optimizations
Connecting Econea’s internal order system with ROIVENUE also enabled optimization based on profit and channel positioning in customer path analysis.
The following analysis was preformed on the channel Criteo, where we identified negative profitability. A margin return on marketing investment of -0,4 showed us that Econea was losing EUR 0,4 in profit for every 1 EUR invested.
This fact was not acceptable. Criteo, as a re-marketing platform typically standing at the end of conversion path – a fact confirmed by ROIVENUETM path analysis – should not have negative profitability.
Econea was able to act on those findings and decrease bidding on the platform. These changes then resulted in savings in investment and again in an increase of the overall effectiveness of Criteo. The channel entered positive ROI, and was showing increasing marketing profit for the last 3 weeks as of the writing of this case study.
Summary
Thanks to ROIVENUE data integration and attribution products Econea made the leap to data-driven company.
“ I think that cooperation with ROIVENUE it is a huge step forward, and we can see that the hard work of evaluating marketing activities and data-driven decisions weekly, based on data we can trust is paying-off. However, there is still quite a lot ahead of us.”
Martin Mates, CMO & co-founder, Econea
All and all, margin return on marketing investment (mROMI) in the last month increased from 1,6 to 2,3 – meaning that Econea increased its profitability by 40%. Thanks to the optimizations initiated by Martin Lanta, Econea was able to save money and it is planning to reinvest them in an upcoming brand campaign that will support future growth.
Recent Comments