Case studies

Turo + Custora

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Since day one, Turo has made every effort to approach their marketing spend as scientifically as possible. They measure marketing ROI as the ratio between customer lifetime value (CLV) and the customer acquisition cost (CAC), which they consider to be the most holistic way of understanding the unit economics for marketing. When CLV (i.e., future gross profit per user) is compared to how much is spent on each user, you can better predict profit that can be reinvested in the company while streamlining acquisition costs. Turo had always lived by the CLV:CAC metric, but applying the methodology felt fragmented and inefficient. In one spreadsheet, the team calculated Turo is a car sharing marketplace where travelers can book any car they want, wherever they want it, from a community of local car owners. Travelers choose from a unique selection of nearby cars, while car owners earn extra money and help fuel the adventures of travelers they meet along the way. Since its national launch in March 2012, Turo has built a vibrant community of over 2 million owners and travelers. Turo is changing the way people think about travel in 2100+ cities and 300+ airports throughout the United States. T U R O + C U S T O R A US I N G P R E D I C T I V E C LV SCO R E S TO I M P R OV E B I DS A N D ACQU I R E H I G H -VA LU E CUSTO M E R S CASE STUDY The Challenge A Sea of Spreadsheets and a Wash of Data average revenue per user (ARPU) and used that to forecast CLV, and, in another spreadsheet, calculated customer acquisition cost (CAC) to try to get a global understanding of marketing ROI. As Turo grew, the marketing team wanted to do these calculations and comparisons to better determine the ROI of each marketing channel. Then the ROI of each marketing campaign. Then the ROI of each marketing keyword and creative asset. And rather than looking at it historically, they wanted it to be predictive, given the rapid growth of their business. Achieving this level of granular insight would help get them smarter about ROI across dimensions and maximize their marketing dollars, but it would also fate them for death by spreadsheets. Continuing to segment each channel by all of their different CUSTO RA I S T H E B RA I N T H AT POW E R S OU R M A R K E T I N G A N A LY T I C S STAC K . Andrew Mok, CMO

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