Peerby, a leading marketplace connecting neighbors across the Netherlands for sharing and renting goods, sought to accelerate its growth while maintaining strong financial discipline. They partnered with Ouchiba to refine their marketing strategy and strengthen key business metrics, aiming to elevate their position in the European market.

Objective

To scale effectively, Peerby partnered with Ouchiba to:

• Gain a deeper understanding of the balance between supply and demand-side marketing, including lead times and optimization levers.

• Maximize the impact of balanced marketing efforts to improve efficiency.

• Identify opportunities to further strengthen core metrics, specifically retention and conversion rates.

• Increase overall profitability through better financial planning and revenue optimization.

While Peerby had already achieved strong market traction, we identified key opportunities to further enhance its scalability and profitability.

The Challenge

Peerby faced the challenge of scaling their marketing efforts sustainably while ensuring profitability. This required a deep understanding of customer behavior and a data-driven approach to optimizing marketing spend across diverse customer segments, as well as identifying other areas of potential operational improvement.

Our Approach

We employed a structured, collaborative approach:

• Business Performance Scan & Topline Model Development: We developed a detailed topline planning model and a value driver tree, analyzing historical marketing performance and customer cohort behavior. This provided critical insights into conversion rates, CAC, and CLTV, establishing a solid baseline for strategic decision-making and allowing us to quantify the impact of subsequent improvements.

• Hypothesis Testing & Strategy Formation: We conducted workshops to formulate and test hypotheses for marketing optimization and cash collection improvements. Successful hypotheses were integrated into a comprehensive marketing and operational strategy.

• Strategic Planning & Financial Modeling: We facilitated collaborative workshops to develop strategic roadmaps, including geographic expansion, and translated these into financial models with scenario planning to assess their impact.

• Implementation Support & Model Handover: We provided implementation support, delivered training, and established a monitoring framework to track performance against the established baseline, enabling Peerby’s team to independently manage and update the financial models.

Key Findings & Solutions

Our work on Peerby’s strategic insight and data analysis helped turn growth into improved profitability at the right time.

The performance scan revealed several key opportunities for improvement:

Optimized Marketing Spend for Sustainable Growth:

• Finding: The topline model revealed opportunities to optimize marketing investment levels, ensuring a healthier balance between Customer Acquisition Cost (CAC) and Customer Lifetime Value (LTV).

• Solution: We delivered a dynamic topline model, empowering Peerby to forecast marketing investment impact and provided data-driven recommendations for budget allocation, leading to improved profitability.

Strategic Marketing Focus on High-Value Segments:

• Finding: Our business scan identified significant variations in CAC and retention rates across different customer segments.

• Solution: We developed and implemented a strategy to focus marketing spend on high-performing customer segments, accelerating topline growth and improving overall retention. This involved mapping and prioritizing areas with historically strong CAC and retention.

Enhanced Cash Collection Efficiency:

• Finding: Inefficiencies in the cash collection process were identified, impacting cash flow.

• Solution: We implemented an improved cash collection strategy, including a multi-touchpoint communication plan and refined tone of voice, resulting in optimized cash collection and improved financial stability.

Results

Following the implementation of our recommendations, Peerby experienced remarkable improvements:

• Significant ROMI Growth: Return on Marketing Investment (ROMI) increased by 83%, driven by optimized marketing allocation and stronger conversion rates.

• Enhanced Customer Retention: Retention rates improved by 5 percentage points, demonstrating the effectiveness of targetekd engagement strategies.

• Improved Cash Flow: Cash collection improved by [x]%, leading to enhanced financial stability and operational efficiency.

Efficiency alone doesn’t drive profitability - strategic execution does. By optimizing marketing spend, improving retention, and refining financial planning, Peerby made better decisions and achieved stronger returns.

Conclusion

Through data-driven analysis, collaborative strategy development, and optimized processes, including the delivery of a dynamic topline model, Ouchiba helped Peerby enhance marketing efficiency, improve customer retention, and strengthen financial planning and cash collection. This resulted in significant improvements in ROMI and cash flow, positioning Peerby for continued growth.

Contact us to learn how we can help your business achieve similar results.