How a prominent product management tool reduced its Acquisition cost by 50% using predicted LTV model
50%
Reduction in CAC
360 degree
Custom profile view
Meet the Brand
The brand is a leading Product-Led Growth platform that empowers teams to work more efficiently and collaboratively. With a diverse suite of tools ranging from project management to communication, the brand serves millions of users worldwide. However, like many companies faced challenges in leveraging data effectively to drive marketing initiatives and achieve sustainable growth.
The Challenge
Fragmented Data Hinders Growth: The marketing team faced The brand business teams relied on a multitude of marketing and sales tools like CRM, ad platforms, and customer support systems. Each held valuable individual pieces of customer data, but lacked the complete picture. This fragmented landscape created silos, hindering effective collaboration and decision-making. The brand needed a unified solution, a single source of truth to unlock its full potential.
Product-Led Growth Demands User Insights: As a platform built on a strong Product-Led Growth (PLG) strategy, the brand navigated a vast pool of free users. The challenge was identifying high-value individuals with a high propensity to convert to paid plans. To achieve this, the brand required granular product behavior data readily available to business teams. This data would empower them to optimize ad targeting, pinpoint ideal leads, and personalize communication at scale, ultimately driving conversions.
The Solution with EasyInsights
Creating a Customer 360 with First-Party Data: The company used a cloud data warehouse as the foundation of its marketing technology strategy, utilizing a Composable Customer Data Platform (CDP) approach. Using EasyInsights, the brand combined customer data into Amazon Redshift to create a single source of truth. Through EasyInsights, the brand's marketing tools were able to access this unified data, which allowed them to create a comprehensive Customer 360 view that connected users across all platforms.
Optimised Ad Campaigns for Cost Reduction: The brand dramatically reduced costs associated with customer acquisition in just six months by utilising the predicted LTV model and the power of first-party data to optimise its ad campaigns. By feeding Google and Facebook Ads with first-party data using EasyInsights, the brand provided these platforms with better information to maximize Return on Ad Spend (ROAS) on their behalf.
Implementation
When ad platforms receive more reliable data, the outcomes are remarkable. The brand slashed its customer acquisition costs by 50% within six months by utilizing EasyInsights to supply first-party data from Amazon Redshift to Google and Facebook Ads.
However, The brand faced a significant timing challenge. They had only about 14 days after an ad click to optimize a Google campaign and fully utilize the platform's machine learning capabilities.
Instead of waiting months for a paid conversion, the brand's data and marketing teams work together to improve ad targeting through predictive modelling.
Initially, they forecasted the expected Lifetime Value (LTV) of each workspace "owner" by analyzing data from the user's first 12 days of activity and demographic information. These forecasts are saved directly in Amazon RedShift as part of the customer's comprehensive profile.
They then use EasyInsights to transmit these predicted LTV values to Google and Facebook Ads as conversion values. This optimisation improves the effectiveness of the campaigns that generated leads.
Result
50% reduction in CAC (Customer acquisition cost) by providing as platform a feedback of user i.e. predicted LTV
A detailed customer profiles and journeys, unifying first-party data. Then, they use EasyInsights to segment their customers to send data to any of the marketing tools.
| With EasyInsights |
|---|
| Unified Data Powers Growth: EasyInsights helped consolidate fragmented customer data from various tools into Amazon Redshift, creating a cohesive Customer 360 view. This unified data empowered marketing tools to access comprehensive customer profiles, driving effective decision-making and collaboration across teams. |
| Optimized Ad Campaigns for Cost Reduction: By leveraging EasyInsights to supply first-party data to Google and Facebook Ads, the brand achieved a significant 50% reduction in customer acquisition costs within six months. The predicted LTV model, made possible by EasyInsights, enabled precise ad targeting, maximizing Return on Ad Spend (ROAS) and driving conversions. |
| Efficient Predictive Modeling: With EasyInsights, the brand's data and marketing teams seamlessly collaborated on predictive modeling for ad targeting optimization. They accurately forecasted the Lifetime Value (LTV) of each customer, storing predictions in Amazon Redshift. EasyInsights facilitated the transmission of predicted LTV values to ad platforms, enhancing campaign effectiveness. |
| Without EasyInsights |
|---|
| Fragmented Data Hinders Growth: Prior to implementing EasyInsights, the brand struggled with fragmented customer data across multiple tools, hindering collaboration and decision-making. Siloed data prevented a comprehensive understanding of customer behavior and inhibited effective marketing strategies. |
| Challenges in Ad Campaign Optimization: Without EasyInsights, the brand faced challenges in optimizing ad campaigns and reducing customer acquisition costs. Limited access to unified customer data hindered precise ad targeting, leading to suboptimal ad performance and higher acquisition costs. |
| Lack of Efficient Predictive Modeling: In the absence of EasyInsights, the brand encountered difficulties in predictive modeling for ad targeting optimization. Manual forecasting of Lifetime Value (LTV) lacked accuracy and efficiency, impeding the ability to tailor ad campaigns to high-value customers effectively. |
