”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, ultimately, simplifies important decisions.” Pavlína Louženská, Marketing Director, ZOOT
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). Its the go-to for the entire industry.
ZOOT.cz, a user-friendly fashion and design e-shop, had an ambitious idea. We were tasked with bringing in as many new customers as we could. With our help, ZOOT.cz increased acquisitions by 36% and kept its marketing investment in client acquisition at a positive zero; meaning there was no financial loss occurring.
How did we do it?
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 see the best way to make this possible, we used Roivenue to unify all of ZOOT.cz’s data streams. These were previously dispersed throughout the internal and external teams and agencies.
Our solution: Setting a limit price for acquisition
Based on ZOOT.cz’s data, we were able to predict Customer Lifetime Value (CLV). Next, we used this prediction to set a ceiling for customer acquisition costs. This limit was our guiding principle for managing marketing investments.
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 covered by the margin
ZOOT.cz increased weekly turnover by 40% and new customers number by 36%. Their marketing budget reached 180% of its original spend, but 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.
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