80% increase in ROI
Through cost optimization and budget reallocation
ROI optimisation for a MedTech company
There are a multitude of reasons which can force companies to suddenly and drastically reduce their marketing expenditures. Stopping all campaigns might be a quick solution but will ultimately result in significantly lower revenues even in the short term. A different approach is to reduce and reallocate media spendings to ensure a reduced effect on the revenue of the company. Through in-depth channel analysis hidden inefficies can be uncovered, which can have significant effects on the overall ROI.
Business sector: MedTech
Project goal: Marketing-Optimisation
Duration: 20 project days
The client needed to drastically reduce marketing expenditures while maintaining as many sales as possible, ie higher profit and return on investment. The client sold a variety of products globally with dynamically managed adspendings through multiple digital channels.
Through data exploration and mining we analysed the aggregate and channel performance on a campaign, product, and country-level along the sales funnel. We uncovered siginificantly varying cost per leads and cost per purchase values on each described level, which we structured and prioratized based on previously developed segmentation mechanism. To ensure optimal conversion rates we furthermore analysed and optimised the sales funnel through incentivising strategies along with multivariate tests.
By focussing on a group of core markets while reducing expenditures in other markets, a significant reduction in marketing expenditures could be reached while at the same time ensuring that sales in the core markets remained at a stable level.
Expenditure per Country Segment
Revenue per Country Segment
Based on our analysis the company was able to reduce marketing expenditures significantly while the number of sales decreasing only by around 20%. This resulted in an overall higher net revenue and significant increase in the return on investment alongside a more efficient long-term marketing plan.