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Retailer Embraces Advanced Attribution; Enjoys a 36% Reduction in CPA and a 44% Reduction in Spend

Situation:

Founded in 1996, this leading UK retailer has grown from a single shop to over 600 stores. With a strong presence online, the company leverages a number of marketing channels and tactics to support its highly aggressive digital growth strategy, including paid and organic search, online display advertising, direct website traffic, social media, display retargeting and email marketing, as well as referrals from a robust partner program.

Challenge:

Prior to utilizing attribution management products from Visual IQ, the collection, reporting and analysis of marketing performance data from multiple disparate channels and sources was a manual and extremely time-consuming process. And once this analysis was performed, optimization decisions were based on flawed last-click metrics that failed to account for any cross channel, cross campaign or cross tactic influence that the company intuitively knew was taking place through marketing “touches” experienced earlier in the sales funnel.

The retailer approached Visual IQ to automate the process of consolidating all of its marketing performance data into a single user interface where it could be analyzed using a common set of success metrics across all channels, campaigns and tactics, as well as replace its outmoded last-click measurement methodology with Visual IQ’s attribution-informed TrueMetrics that would quantify the impact that every channel, campaign and tactic has on the company’s overall marketing success.

Goals:

With this increased data gathering and integration efficiency, as well as the improved accuracy of its analysis, the retailer sought to allocate its marketing spend more efficiently to significantly reduce cost per acquisition (CPA) and increase the ROI of its digital marketing efforts. Further, marketers at the company sought a solution that would allow them to integrate their own demographic, location and cost data so that they could easily identify new opportunities for optimization based on those attributes.

Solution:

Visual IQ first worked with the retailer’s marketing team to gain direct access to the performance data from all of their various marketing channels and data sources, including their paid search initiatives; online display and retargeting efforts; email and social activities; website transaction data; demographic, location and cost data; as well as marketing performance data from their partner organizations.

Next, Visual IQ consolidated and integrated the data from these disparate sources into its IQ Envoy software product, which enabled the marketing team to easily view their standard set of lack-click performance metrics against a corresponding set of attributed TrueMetrics that accurately reflected the true quantitative impact that each channel, campaign and tactic had on the performance of their overall marketing ecosystem. These TrueMetrics quickly became the single “source of truth” for marketing performance measurement within the marketing organization, enabling them to easily identify which channels, campaigns, creatives and keywords were being over- or undervalued compared to last click, how to allocate budgets more effectively, and what changes to make in order to maximize their overall marketing performance.

Then, using Visual IQ’s IQ Sage product, marketers at the company were able to seamlessly use the attributed metrics produced by IQ Envoy to explore multiple “what if?” marketing spend scenarios and test combinations of channels and tactics in a virtual environment, enabling them to understand the impact of potential changes in advance of putting them into marketing, and fine tune their marketing mix to maximize their return.

Results:

The insights provided by Visual IQ’s cross channel marketing attribution software products has enabled the retailer to:

  • Implement changes to its online campaigns that produced a 36% reduction in overall marketing CPA, saving the company 44% of overall budget, while increasing ROI by 70%.
  • Break down organizational silos and foster collaboration among its marketers by enabling them to understand the true impact of each channel on conversions, identify the influences and synergies between channels, and reallocate budget to the tactics that produce the best return.
  • View and analyze the ROI performance of all their partner organizations and make more informed decisions about those ongoing partner relationships.

“Visual IQ has not only provided us with the insight needed to make better decisions, but their flexible implementation approach has enabled us to address the unique complexities of our industry and the ever-changing marketing mix. Visual IQ’s platform has enabled us to optimize our marketing activity more effectively, and generate optimized media plans with minimal time and resources. We’re blown away by the results they’ve been able to deliver in such a short time.”

Head of Online Marketing, Leading UK Retailer