Spending in the right places to reach more priority customers

Challenge

Client was a successful real estate brokerage with a solid reputation and good profitability, but faced extremely fierce competition from both national players and large local brokerages. The return on marketing investments were starting to erode. The challenge was to identify and implement a competitive positioning, market focus, and a set of marketing guidelines that would enable the client to retain the most lucrative high-growth customers, and acquire more such customers.

Discovery

The Genova Digital team worked closely with the client to create an objective analysis of strategic, and marketing-oriented criteria for the brokerage. We created a model to clarify customer profitability, where the client team was able to identify clearly who the high-growth customers are. It also set the precedence for marketing positioning discussions on where in the market they should be focusing their efforts on. The client was able to quickly grasp the most relevant drivers of brand value, the most effective media in which to advertise, and the marketing strategies that are most likely to succeed. We were able to segregate the current customer segments based on the profit model into three groups: grow aggressively, grow, and sustain. We worked with the team in developing and executing the marketing strategies required to grow the relevant customer segments, taking into account the particulars of each customer segment’s nuanced context. Our work here included web design and development, marketing campaigns, and content marketing.

"The use of social media as a marketing tool is often frowned upon as frivolous. It is observed that many marketers merely see social media as another platform to advertise products and services, and overlook the potential to educate customers via content marketing."

Rachel Turner
Senior Expert, Genova Digital

Impact

After piloting the new approach in allocating marketing spend for 9 months, the client reported 137% increase in marketing ROI.

Key ROI results include:

• Customer Lifetime Value (CLTV) in the “aggressively grow” segment increased by 50%, signalling the success of customer retention efforts.
• Customer base in the “aggressively grow” segment grew by 35%.
• Online marketing ROI year-on-year tripled.
  

"Genova Digital is by far the best marketing partner we have ever worked with. They have a knack for navigating complex problems with a clear plan of action, and their combined skillsets in both business and design produce beautiful work that are highly effective."

Client
Founder