May 22, 2024

Through High-Value Modelling, ROUVY identified that 60% of their Google Ads budget was misallocated

The primary objective of ROUVY's performance team was to acquire new users. However, without statistical information on the significance of microconversions on main conversions, there was a risk of ineffective ad budget allocation.

*The Challenge

ROUVY, an innovative indoor cycling software company catering to both professional and hobby cyclists, encountered a significant challenge: understanding user behavior before they signed up for a trial. The primary objective of ROUVY's performance team was to acquire new users. However, without statistical information on the significance of microconversions on main conversions, there was a risk of ineffective ad budget allocation.

“Microconversions are very efficient in supporting main valuable conversions. However, if companies do not focus on the right goals, they risk allocating the majority of their ad budget toward the wrong objectives. To avoid this, we utilize predictive data.”

— Vojta Vais —Chief Sales and Marketing Officer, Optimics

*The Approach

To tackle this challenge, ROUVY partnered with Optimics and utilized BigQuery as their data warehouse, compiling comprehensive data on users, website interactions, and app usage. To accurately evaluate the significance of each microconversion, we implemented High-Value Modelling. This method involved linear regression analysis, which provided insights into which microconversions had a meaningful impact on the number of main conversions.

The entire solution was executed using Collab as a notebook, facilitating all phases of data preparation and computation. This collaborative approach ensured a thorough and precise analysis.computation phases.

*The Results

Initially, ROUVY employed 12 different microconversions to motivate and guide users towards completing main conversions. The High-Value Modelling analysis revealed that only 2 of these microconversions significantly impacted main conversions. This critical insight allowed ROUVY to refine their strategy and ensure more effective allocation of their Google Ads budget.

“We started with this project to deeply understand what microconversions we should use to acquire new users. Outcome of this project we will use in upcoming season to properly allocate our Google Ads budget.”

— Barbora Petříková —Performance Director, ROUVY

With this newfound understanding, ROUVY is now positioned to optimize their marketing efforts and budget allocation for the next indoor cycling season, enhancing their ability to attract and convert new users efficiently. This data-driven approach not only improves financial efficiency but also supports the company's growth objectives by focusing on what truly drives conversions.