How Magic reduced their CAC by 23% in a quarter!
Paid advertising is the cornerstone of Magic’s new client growth. This means that tracking and measuring ad performance is vital to ensuring efficient, scalable growth.
However, with long sales cycles and data scattered across siloed platforms, Magic found themselves spending considerable time manually putting together reports. This tedious process was inefficient and offered only limited insights.
But with a growing focus on Customer Acquisition Cost, go-to-market performance reporting needed to be simpler and less time-consuming, to enable more efficient decision-making.
That’s why they turned to Dreamdata.
Key results Magic has achieved with Dreamdata so far:
Reduce CAC by 23% quarter-on-quarter
Save time and resources by shifting from manual reporting
Improve upward reporting by working with unified dashboards
About Magic:
Magic offers a frictionless way to plug in thoroughly vetted, cost-effective remote workers, to help scale key business functions.
Through a combination of automation and active work, Magic taps into their network of vetted remote workers who handle tasks from virtual assistance and customer service to sales lead generation and scheduling across various team members.
The challenge: easily identify paid campaign performance to reduce CAC
Like many B2B go-to-market organisations, the team at Magic work with CAC as their primary KPI. However, to bring their CAC down sustainably, while maintaining consistent customer growth, Magic faced a number of challenges:
They needed to improve decision-making through reliable data,
They needed to gain access to metrics further down the funnel,
And they needed to do so in a timely manner.
Christian Vibar, Performance Marketing Manager, outlined how the team at Magic wanted to be able to “make good decisions, fast.” Decisions that “encompass which platforms to invest budget on, what campaigns to scale up or down, and even diagnosing anomalies in performance. None of these are possible without data that we can trust.”
While Magic had an existing paid performance reporting setup in place, this was a manual process that took valuable time and effort to put together. Time which could instead be used analysing and operationalising the data.
“A single paid ads report would take up to 4 hours per week. And this is prone to errors since we’re manually putting in numbers in a Google Sheet. This alone was a great source of frustration since that should be time spent in analyzing and drawing up plans (instead of collecting and presenting data).”
Beyond this, Christrian outlined the challenge of easily connecting the leads they were pulling from their campaigns to pipeline. This meant having little insight into the quality of their leads.
“On a strategic level, prior to Dreamdata, we didn't have a sense of the quality of leads that were coming through our funnel. Or at least it took us quite a while to detect them.” added Christian.
The solution: clean, unified go-to-market data for custom reporting.
To overcome these challenges, Christian and the team at Magic needed to bring together data from across their go-to-market tech stack. They needed accurate reporting from this data. And they needed quick and easy access to the reports.
As a B2B revenue attribution platform, Dreamdata offered the solution to all these needs. Dreamdata integrates with all the tools on the go-to-market ecosystem and tracks all on-site account behaviour. This means that Dreamdata is able to track and measure all recordable touches across the B2B customer journey, to present actionable analysis on what’s driving pipeline and revenue.
“Personally, the models inside Dreamdata have been very useful. We make a lot of custom reports and visualizations where the information comes from different places, ad metrics and contact level details, for example. Accessing Dreamdata’s models has made that process easier for us.” highlighted Christian.
Thanks to this, the team at Magic can now:
Quickly access data to speed up decision-making
Work with metrics further down the funnel
Easily evaluate the efficiency of paid performance
Better optimise campaigns to reduce CAC
Need metrics for further down the funnel
Let’s take a look at what this has meant for the team at Magic. 👀
The results: more efficient reporting, leading to more efficient marketing and a 23% reduction in CAC
“Dreamdata has enabled us to operationalise data and has made us more confident in our decision-making.”
And the results speak for themselves.
Reduced CAC by 23% quarter-on-quarter
After setting up Dreamdata, Christian and the team at Magic quickly identified a number of inefficient campaigns which were negatively impacting their customer acquisition costs.
They found that while the campaigns were performing ‘well’ in generating leads at the top of the funnel, when they looked at the impact further down the funnel and on actual revenue, their performance was poor.
Check out Dreamdata’s guide to reducing your CAC wisely —>
“These were eye-opening because these campaigns looked good on the top of the funnel (cost per MQL) but the conversion rates further down the pipeline were really bad.” noted Christian.
By picking these bad apples out and doubling down on the best performers, the team and Magic were able to improve the quality of the leads and improve conversions further down the pipeline.
Christian tells us this meant that “from Q1 to Q2 this year, our customer acquisition cost improved by 23% while our cost per MQL and SQL remained the same, which is a very good sign of a healthier pipeline.”
Save time and resources by shifting from manual reporting
With Dreamdata’s integrations in place, the time-consuming effort of manually piecing together reports was finally discontinued. Instead, Christian and the team at Magic are now just a couple of clicks away from instant access to all their go-to-market data in easy-to-use dashboards and reports.
“Instead of spending too much time trying to figure out what happened in the past, we can quickly look at our dashboard and plan ahead. For me, this is a much more productive use of our time and energy.”
Improve upward reporting by working with unified data and dashboards
Beyond time saving, the unified data and reports have proven to be a catalyst for improved decision-making at all levels.
Bringing all the data and analytics under one dashboard has simplified the reporting process. Which has not only facilitated the analysis for the paid performance team on the ground but has also been particularly useful in upward reporting.
“Previously we didn’t have a single dashboard to look at. Instead, we would have to switch between different dashboards and reports, with different metrics and values. This tended to be very confusing especially in management meetings.”
