DJL #4 - Lead & acquisizione clienti
Context: how customer acquisition works for Facile.it
1) Awareness offline, performance online
In Facile.it, brand awareness is built offline (mainly through TV ads) while online advertising follows the direct response paradigm. This means that users’ expected behavior after interacting with an ad is a direct action: the request of a quote on Facile.it’s website, basically the filling of a form online. We call this action “lead”; leads represent our main marketing objective.
2) Performance marketing: buying leads at a profitable CPL (Cost Per Lead) to make marketing profitable
We optimize all advertising campaigns so that the resulting ROI is always positive: for each acquisition channel (Google Ads, Facebook Ads etc.) the revenue per lead (RPL) always exceeds the cost per lead (CPL).
Basically, we aim at generating the maximum number of leads within a given target CPL, always ensuring that:
Actual CPL = Target CPL < RPL
Changes in the CPL are of course correlated with changes in the number of leads, obviously the more you spend the more traffic and leads you buy. For this challenge we assume all cost-volumes correlations to be directly proportional→cost-volume curve at 45 degrees→if you raise cpl by 10% you get 10% more leads.
3) How we associate each lead to its channel -> Modeling attribution
The customer journey is not always straightforward. Before making a lead (before “converting”) the user might interact with different media in different ways: for example a user might see a Facebook banner first, click on a search engine ad later, and then convert after clicking an organic result on the search engine days later. A crucial question needs to be addressed: which media can be considered responsible for the lead when more touchpoints are involved? What traffic source should we attribute the lead?
In Facile.it we currently attribute the lead to the last source of traffic the user has interacted with before converting. This model is called last-click, it is the standard attribution model on Google Analytics, the main web analytics tool we use in Facile.it.
Yet there are many other attribution models that assign leads to different sources based on different criteria: “first-click”, “linear” and “time-decay” are some examples. Learn more here.
To better understand the concept of attribution models, look at this document.
Founded in 2008, Facile.it is today the Italian leading comparator for insurance, financial services, utilities and internet providers. Every month It helps more than 3.000.000 users compare the best offers and save money, like choosing the most convenient car insurance company.
Facile.it is an innovative and fast-growing web company. Moreover, since May 2018 we have joined with EQT, an international fund with €50 billion capital.
In recent years Facile.it has achieved a year-on-year average turnover growth of 20%, generating revenues of €106 million in 2019. With the opening of 17 stores distributed throughout Italy, Facile.it has come even closer to 3 million plus users of the website, offering a fully personalized consulting service.
Today Facile.it is an internet company with 1000 people working for It. The HQ is in the heart of Milan, in the Missori area, at a location which offers fresh fruit every day, an amazing living room with table tennis and foosball.
Facile.it will reward the teams with job interview and company visit (TBD).