How Attribution Modeling Helped Bonobos Cut Marketing Costs and Double Sales
In July and August of this year, Bonobos began testing the hypotheses with Converto. It began tracking consumers who clicked on display ads over a specific period of time to see if the touchpoint led to a conversion. As Bonobos suspected, it didn't see a significant jump in conversions. "We went back to our media partners and told them we have the data to show them that the ads are driving traffic, but those consumers aren't coming back to convert," says Ebert. As a result, Bonobos slashed its display budget significantly in August.
Bonobos now attaches multitouch attribution parameters to all its URLs disseminated externally on a daily basis. That includes links on Facebook, in emails, in search ads, etc.
"We just found out through Convertro that Facebook news feed posts and paid ads on a first touch and first few touches basis perform well for us, so we've allocated a large percentage of our advertising budget to that," Elbert says. He added that Bonobos has a significant number of consumers coming into its Guideshops around the country, which enable consumers to try on clothes and decide which items to buy. Rather than leaving with the merchandise, however, customers order the clothes online in-store and receive them within one day or two days.
"Our Guideshops have been great for customers discovering the brand, and we work that into our attribution model as well," says Elbert. "For example, if their first purchase was in a Guideshop, we use that as their discovery point."
In short, Convertro can now reallocate dollars and optimize marketing strategies that specifically target each type of consumer, without wasting ad spend by targeting the wrong people through the wrong mediums.
Since using Convertro over the past year, Bonobos has "cut its marketing costs as a percentage of sales and at the same time doubled our business," says Elbert. "A lot of that is around being able to allocate our spend where it's most effective."