25% more purchases using SegmentStream: Cosatto’s success story

About Cosatto:

Cosatto is a well-known premium global nursery brand manufacturing travel systems, pushchairs, car seats and highchairs. They create friendly, thoughtful award-winning products with baby-engaging designs that enhance the lives of kids and parents.

In 1981, Andrew Kluge, the inventor of the framed pushchair raincover, created Cosatto with just a sewing machine and a patterned shirt. Now a famous nursery brand, with 3 million happy babies so far, Cosatto is saving the world from boring baby stuff.

The challenge: 

When it comes to high-value products, customers typically spend more time evaluating the offers on the market and searching for better alternatives or deals. And now we’re talking about parents who are choosing baby products — they definitely want what’s best for their children and won’t rush to make the right decision.

As a result, the brand has a long sales cycle — on average, it takes a user 8 days to complete a purchase from the initial website visit. However, this statement is only true for those conversions tracked by a single website cookie. This means that the real sales cycle is much longer, as people often use multiple browsers and devices, and website cookies can expire or be removed.  

Challenge: Proper attribution and budget allocation

Due to long sales cycles and complex cross-device customer journeys, it is impossible to track conversions down to the initial traffic source. 

As a result, Cosatto’s marketers struggle to see the real value of upper-funnel and mid-funnel campaigns. For example, many conversions are attributed to the “direct/none” category no matter which attribution model was used for analysis purposes. 

A lack of insights into which traffic sources were actually responsible for generating conversions prevented Cosatto’s marketers from efficient budget allocation and marketing mix optimisation.

SegmentStream solution:

SegmentStream is an AI-powered marketing mix optimization solution that provides a next-generation solution to outdated attribution tools. 

Traditional attribution methods are no longer suitable for cross-device and cross-browser customer journeys and modern cookie restrictions. Due to this, top-of-funnel channels and campaigns are not getting the sales credit they deserve. 

Unlike traditional attribution tools, SegmentStream doesn’t rely on tracking customer journeys. Instead, SegmentStream uses AI to understand the incremental contribution of each marketing channel and campaign into total revenue, even if it is not possible to link the actual conversion directly. Such an innovative approach helps to properly measure the true impact of top-of-funnel marketing activities that typically don’t get enough conversions and value.

Results:

Using SegmentStream, Cosatto’s marketing team was finally able to understand the impact of each marketing channel and campaign. As the performance of all paid ads started to be analysed properly, the team at Cosatto realised that budget allocation needed to be tweaked.

The whole approach to budget allocation became data-driven. This resulted in an improvement in the overall marketing mix — the total number of purchases went up by 25% and the cost per purchase dropped by 12%.

Customer Testimonial:

Before we learned about SegmentStream, we weren’t able to allocate budgets between paid ads channels properly due to the inability to analyse their real impact in depth. All the attribution models that we tried granted too little credit to upper-funnel campaigns. However, we knew that they do bring a lot of value in generating sales from other traffic sources. Yet, we could not measure their impact in a data-driven manner.

SegmentStream’s approach was different. Their platform provided us with insights into which traffic sources truly contribute to moving users towards future purchases, even if the purchase might happen from another browser or device.

The team at SegmentStream not only accompanied us during the implementation stage but also helped us to comprehend attribution insights properly. 

As the result, the performance of the overall marketing mix has significantly improved — we saw a little under a 25% increase in total purchase, with the cost of sale going down by 12%

We are extremely happy with this collaboration and definitely looking forward to solving new challenges with SegmentStream.

— Dan McKenna, Associate Digital Marketing Director at Cosatto