How Treedom reduced its cost per order by 19% by leveraging Cassandra MMM

How Treedom reduced its cost per order by 19% by leveraging Cassandra MMM

How Treedom reduced its cost per order by 19% by leveraging Cassandra MMM

Industry: Luxury
Marketplace
Location: Netherlands
Italy
Product: D2C Brand
Cassandra

Introduction:

Intro: 

In this article you are going to learn how Treedom, a Direct to consumer company, leveraged Cassandra Marketing Mix Modeling to measure its media mix effectiveness and optimized their media strategy allowing them to improve their cost per order and improving its gross margin.

Who is Treedom: a company that is saving the planet

Treedom, established in Florence in 2010, is a platform allowing people to plant trees in agroforestry projects with a strong social impact. It has significantly contributed to the environment by planting over 3 million trees across Africa, Latin America, Asia, and Italy. This innovative approach has earned Treedom a spot in the Certified B Corporations since 2014, highlighting their remarkable environmental and social performance​​.

Problem:

Treedom's Challenge: Big Marketing Mix complexity - Small Clarity

Treedom faced a complex marketing mix dilemma, utilizing a variety of channels including offline media, influencer marketing and digital platforms. 

All marketing channels are impacting sales but Treedom wanted to measure the real contribution that each one of them had and why. 

Attributions were not always capable of showing a clear picture of their complex media mix.

They faced some struggles in gauging the impact of influencers, identify each media's contribution during the critical Christmas peak and accurately measure the impact of their email campaigns. 

This uncertainty made it difficult for the marketing team to optimize their marketing investments, especially considering the seasonality of their business.

Solution:

Solving complexity and discovering optimization opportunities with Marketing Mix Modeling

Cassandra, leveraging machine learning-based Marketing Mix Modeling, provided Treedom with a comprehensive analysis of their marketing data. This led to discover that:

  • They could scale their budget on Meta: according to the MMM Meta had linear returns with more budget invested.
  • Influencer marketing was the biggest contributor of Sales: in December alone generated more incremental sales than Facebook and Google ads combined.
  • Overinvesting in Google Performance Max and Tiktok: The investments were not fully justified by the incremental sales generated by those channels.
  • Email marketing had a significant 20% impact on revenue.

This insight was pivotal in reshaping Treedom's marketing strategy. 

Treedom Marketing team achieved a better clarity of what worked and what didn’t in their Marketing Mix enabling them to start planning and optimizing their investments. 

“Moreover, Cassandra's Budget Allocator simulated and predicted the most effective media plan for Treedom, ensuring optimal budget allocation​​.”

Impact:

Results: More trees planted More oxygen produced, less advertising budget wasted

Thanks to the insights garnered from Marketing Mix Modeling developed with Cassandra, Treedom's team achieved remarkable results. 

By strategically utilizing Cassandra's data-driven insights, the team effectively identified and eliminated underperforming campaigns. 

This led to:

  • 15% savings in their total advertising budget, achieved by discontinuing inefficient Google Performance Max campaigns without impacting sales. 
  • 19% reduction in the overall Cost Per Order (CPO).

This success story highlights the team's adept use of Cassandra as a powerful tool to enhance their marketing strategies and drive impactful business outcomes.

Conclusions

Conclusion:

Treedom's successful partnership with Cassandra demonstrates the real-world impact of precise Marketing Mix Modeling strategies. 

By utilizing Cassandra's Marketing Mix Model, Treedom effectively streamlined their marketing expenditures, leading to a significant 19% reduction in Cost per Order. This pragmatic approach not only optimized budget allocation but also directly contributed to a more sustainable advertising footprint. 

Measure and optimize your Media Mix with MMM