How to reverse a downtrend
Find out how we reversed a down trend in revenue and efficiency by adjusting the marketing mix between platforms and by optimizing allocation.
Services
Budget optimization and forecast models
Platforms
Google, Meta & Pinterest Ads
Result 1
Result 2
Project Overview
This case study is ideal for companies that are looking for more efficiency, but without sacrificing revenue growth
If you are asking yourself any of the below questions, then this case study is for you:
- How do I reverse a negative trend in revenue and / or in efficiency?
- How do I know which platform will be the most beneficial for my business in driving sales?
- How can I avoid overspending, or underspending in order to achieve scale?
- How can I predict sales & efficiency metrics over the year?
Conflict
We were not only faced with 34% YoY revenue decline, we were also faced with 12% efficiency (MER) decline.
Increasing efficiency while increasing revenue is hard, they are normally a tradeoff, unless:
- The budget wasn't allocated between channels efficiently to begin with
- The ad accounts aren't set up efficiently, leaving low hanging fruit on the table
Both are critical, but how do you achieve efficiency and scale at the same time?
- Contribution value across channels
- Budget allocation across channels
- Budget allocation within channels
Sometimes it can be as easy as looking at what CPC levels each platform is driving traffic to your site, or what the cost per action per channel is.
Results
We call the result a 'double green'. And that's exactly what we did. A quick look at CPC levels gave us early indications on how to rebuild the marketing mix
We built a model that allowed us to understand max CPA ceilings, per product, so that we can optimize the ad accounts not just for efficiency, but for scale.
- You need to calculate what CPA's you are willing to accept at acquisition in order to build a scalable growth strategy
- Therefore, finding your max CPA is step one.
- Then, budget allocation within platforms, and across products is next
Using this knowhow at a product basis, allowed us to turn performance around within 4 months;
- From a 20-30% efficiency and revenue decline to 10-20% growth.
Leverage: "We dig deep into your numbers so that we really understand your business. That knowhow allows us to make strategic decisions for profitable growth." Jason Heiber
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Stephen Murphy
Elizabeth Grojean
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Stephen Murphy
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Elizabeth Grojean
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