Inadequate Revenue Growth:
Even with an increase in marketing spending to $13K, the client’s revenue only saw a slight $0.2 million uptick.
Heavy Dependency on Marketing:
The client heavily relies on marketing activities to generate sales leads in an intensely competitive travel industry, competing against giants like Expedia, Booking.com, Kayak, and numerous other OTAs and meta-search organizations.
Lack of Cost-Effectiveness:
The client was looking for solutions to reduce the escalated marketing expenditure without compromising the boost in sales, aiming for a more cost-effective approach.
Heavy Competition:
The client faced the challenge of competing with well-established industry leaders who have substantial market share and resources.
Unmet ROI expectations:
The client was seeking a strategy to maximize the return on investment (ROI) for the increased marketing budget while maintaining sales numbers.
Reallocating Marketing Budget
We understood the importance of marketing for acquiring new customers. Our approach involves smartly reallocating the budget from non-performing channels to high-quality lead sources.
Data Warehousing
Our data experts designed a data warehouse to consolidate data from multiple sources.
We set up an AWS server to centralize data, including Zopim chat data, Right Signature data, CRM sales data, marketing expenditure data, and call logs.
Data Visualization
We transformed data into structured tables/charts/interactive visuals within the central data warehouse and utilized the “Mirror” platform for data exploration, enabling insights into trends, correlations, and anomalies.
KPIs Identification and Monitoring
Assisted the client in KPI identification for optimizing marketing budgets, focusing on:
1. Channel-wise GPM Earned Per Dollar Spent.
2. Lead Conversion Quality for each channel.
3. Conversion cycle for each channel.
4. Acquisition vs. Re-engagement cost.
Identified high and low-performance channels, guiding cost optimization decisions.
Utilized channel conversion cycle and Adstock Rate to meet desired results within expected timeframes.
Real-time Results: The use of channel conversion cycles and Adstock Rate led to the achievement of desired outcomes within the expected timeframes.
This case study showcased how smart marketing data management saved costs and improved the travel agency’s overall performance. By using data-driven decisions and refining marketing strategies, the agency ensured long-term success and growth.
