Monitoring consumers’ digital behaviour is harder than ever. The old-school marketing funnel has disintegrated beyond recognition, consumer attention and loyalty are severely fragmented, and users frequently switch devices.
Determined to better understand customers, Sparro worked with The Blue Space to build durable, privacy-focused measurement strategies that demystified consumer behaviour and drives more profit.
How Sparro approaches measurement agency-wide
Since its founding in 2013, Sparro has led the way in adopting advanced measurement tools. We’ve always kept pace with developments, tested pre-release tools, and built our own when we needed more robust or bespoke outputs.
Over the last 24 months, our focus has been on transitioning clients to Google Analytics 4 (GA4) and Enhanced Conversions to ensure precise, privacy-compliant tracking. While both can be challenging for clients to adopt from a development and investment perspective, we’ve prioritised these for their increased accuracy in measurement.
We’re BigQuery power users. It’s invaluable for warehousing data and is the foundation on which we build our Causal Impact Studies — which we use to model and attribute results to full-funnel media, including YouTube. Our internal data science team uses BigQuery to calculate and model Predictive Customer Lifetime Value, so we can target our client’s most profitable new users.
Advanced measurement is driving more profit for The Blue Space
You don’t buy a bathroom in a few clicks. In fact, The Blue Space’s most valuable customers spend 18 months or more from ideation to creation.
We know this because we ran a Customer Lifetime Value study for The Blue Space and gained valuable insights into their product segmentation mix and customer behaviour. Today, we use these advanced learnings to match our advertising strategy to real buyer journeys.
The result: 26% more profit — even as we spent 4% less.
Additionally, smarter product segmentation grew revenue for The Blue Space’s brands by 16 times Year over Year.
Partnership impact
Sparro’s culture is one of shared growth and recognition. We recognise incredible innovations and celebrate the impact they’ve had for our clients. The impact our measurement solutions have had on The Blue Space cannot be overstated.
Morris Bryant, Exec Partner, says that the results show the impact that can be achieved when agency, tech partner and client all work towards solving the same problem.
“Advertising automation can only work at its best when you’re feeding it the right data — and the data matches both customer and business needs. We nailed that with The Blue Space and can see the change reflected in their business. They’ve gone from looking at contingencies to really backing themselves on growth.”
The Blue Space relies on paid advertising to drive sales. Now, with improved profitability in their core marketing channel, they have doubled down on warehousing and category expansion.
We aren’t done yet. We’re still optimising product segments and campaign structures to better meet the needs of real customers. Up next is Predictive Lifetime Value study — campaigns won’t just be built on the revenue generated from selling products in a single transaction, but will be designed around attracting customers with high lifetime values based on all predicted future transactions they are likely to have with The Blue Space.
The Blue Space’s future relies on customers not buying individual items, but their full renovation cart — so this digital innovation is going to be (another) game-changer for their business.