CHALLENGE
Our client, an online sales company, leader in its sector, with marketing costs of more than 10 M€ per year, wanted to know the exact impact of its online marketing actions and optimize the investment per channel to the maximum. Ensuring the appropriate weight in each source according to its actual results.
RESULTS
It was identified that the channel that initially obtained the best data was not the one that generated the best results a year later, so in the long term it was not the most profitable.
The evolution of channels from month 7 changed, direct traffic became more profitable, and from month 10 the LTV of those customers coming from the CRM exceeded the rest. This allowed the investment in paid media to be optimized much more efficiently in the long term and with a direct impact on business.
kraz solution
To measure the real effectiveness of each channel, the margin data was analyzed, not the sales volume. In this sense, the LTV was established as the main KPI of business performance reference, in this way the value of user acquisition could be estimated not only in the current return, but in their future behavior.
Thanks to this evolutionary analysis of the LTV, with a historical track record of 12 months, the decisions of the paid media channel become pivoted with a medium-term focus (not short), guaranteeing a greater business trajectory.
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