Executive summary:
Limango achieved a significant reduction in cost per lead (CPL) by up to 20% by setting up an automatic product exclusion process for their feed-based META ads, facilitated by Funnel's automated data collection. This automation saved considerable manual effort, affording Limango the time and resources necessary to properly analyze their media strategy and identify previously unseen insights. They could then objectively clarify the high-performing marketing channels and subsequently improve their paid media mix, making it possible to significantly scale up the META as a customer acquisition channel.
Key results:
- Achieved an up to 20% reduction in cost-per-lead for feed-based ads
- Automated data reporting processes, saving significant manual effort
- Improved budget allocation by identifying high-performing marketing channels
Company profile:
Founded in 2007, Limango operates in Germany, Poland, and the Netherlands, serving as a private shopping club primarily for families. Limango offers a wide range of products, including clothing, toys, and household items, focusing on providing the best deals to its members. The company also features an open shop and a second-hand marketplace, enhancing its value proposition to customers.
The challenge: Overcoming manual reporting obstacles
In 2020, the marketing team at Limango faced the challenge of consolidating data from an increasing number of marketing channels. While they had some automated processes in place, the growing complexity of their channel mix required a more robust solution to gather all data in one place efficiently. They needed a tool that offered a wide array of connectors to different platforms and the flexibility to create custom connectors for those that didn't have their own.
"Our semi-automated processes weren't as efficient as we needed them to be to achieve our goals. We needed a solution that could integrate seamlessly with our diverse range of marketing channels." - Jan Kremer, Business & Data Analyst at Limango
The solution: Moving beyond reporting
In order to resolve the immediate need for automation the Limango marketing team found Funnel and started using it to automate data extraction from marketing platforms and sending the data into BigQuery and onwards to PowerBI for reporting.
"Funnel allows us to consolidate data from numerous platforms into one place and transform it into a unified format. Regardless of the raw data's original structure, Funnel enables us to standardize it effectively."
In 2022, Limango brought in Jan Kremer as a Business & Data Analyst to help further drive efficiencies for the different functions in Limango’s marketing division. With a solid baseline reporting already in place, Jan and the team could focus their attention on how to most effectively improve their key performance indicators, and they chose to focus on Meta Ads which was one of their largest channels in terms of budget. On Meta Ads, the team started experimenting with dynamic catalog sales ads which use a product feed to dynamically serve product specific ads to relevant audiences.
After some initial testing, the team found that they generated above average returns in terms of cost per lead, a key metric the team evaluates performance on. And even though the initial tests looked promising, the team noticed that certain products were generating below average returns, meaning that their performance could potentially be improved further if they were excluded from the product feed shared with Meta on a daily basis. However, it would add back manual work to the team unless this process could be automated. Luckily, the team now had Jan and Funnel in their corner to help with that.
The results: Operationalizing reporting data
Jan set up a process where the extracted product level data from Meta Ads is blended with Limango’s backend metrics. Then, based on certain thresholds, products performing below average are automatically excluded from the next product feed that is shared with Meta every day. Each day new data is extracted, blended and used to update the product feed.
The results of the new process were quickly noticeable, with the cost per lead going down as more and more unprofitable products were excluded from the product feed. After some time of continuous improvement, the cost per lead from dynamic catalog sales ads had been reduced by up to 20%. Naturally the management team at Limango took notice, and approved increased budgets for the channel as long as the cost per lead kept improving. Before long, Meta Ads had become a significant driver of Limango's growth, and the team is now looking at how to use a similar process for optimizing their other product based ad's via other channels.
On the results, Jan notes: "Management is very happy with the results. Our ability to scale up Meta advertising while maintaining good performance has been a great improvement. Funnel's platform gave us necessary tools to utilize the data for the innovative processes that we have been able to build.”
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