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

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.

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Who is Treedom: a company that is saving the planet

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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 operated within a complex multi-channel landscape, deploying a diverse marketing mix that spanned offline media, influencer partnerships, and digital performance platforms.

While every channel influenced top-line revenue, standard attribution models failed to provide a clear, unified picture of their actual performance.

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The marketing team faced significant hurdles in isolating the true incremental lift of influencer campaigns, mapping individual channel contributions during the critical Christmas sales peak, and accurately measuring the downstream impact of their email marketing.

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Compounded by extreme business seasonality, this measurement blind spot made it incredibly difficult to confidently optimize and reallocate their ad spend.

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 several discoveries:

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• 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.

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These insights were pivotal in reshaping Treedom's marketing strategy. 

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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. 

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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 money burned

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

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

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This led to:

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• 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).

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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.‍