Data-Driven McDonald’s Increases Conversion by 550% with Machine Learning in GA4?
Hello Data Club members! Today, we have an interesting case study to share with you. McDonald’s, a global fast-food brand in Hong Kong, is another brand that has adapted by using various tools for data collection and analysis to develop marketing strategies that have led to significant success. Want to know how? You can read all about it here!
We’ve organized the information from everydaymarketing.com.
What is GA4?
GA4, or Google Analytics 4 (formerly known as App and Web Property), is a marketing data analytics tool. It’s a critical tool for brands that have their own websites and applications, helping them focus on their customers’ real behaviors, emphasizing micro-moments, and aligning with data privacy.
What is Conversion?
Conversion (CV) refers to actual sales in business. In the context of online marketing, it refers to the target audience that responds to advertisements or social media posts, such as clicking to view, liking, subscribing, or making a purchase.
McDonald’s Hong Kong and the Astounding Conversion Results
Due to the COVID-19 situation, consumers have shifted towards online shopping and food delivery platforms. However, selling on third-party applications not only incurs high fees but also doesn’t provide customer data for analysis. Therefore, brands with their own apps, like McDonald’s in Hong Kong, have encouraged customers to use their apps once again. One way they did this was by employing Machine Learning in GA4 to predict future purchases accurately.
McDonald’s Hong Kong adopted a data-driven marketing strategy using Machine Learning to identify “Likely 7 Day Purchasers,” people likely to make a purchase within 7 days. They then launched personalized marketing campaigns targeting this group. This strategy resulted in a remarkable 550% increase in conversions.
In addition to personalized marketing, they conducted A/B testing to compare the results with another group to measure the significance of the differences. The results showed that McDonald’s could send promotion campaigns to the group likely to purchase within 7 days instead of sending promotions to everyone, reducing the Cost-Per-Acquisition (CPA) by over 63%.
This represents a significant change in marketing strategy, choosing to use intelligent tools that have proven highly successful. Furthermore, they may continue to develop by creating sub-segments to understand the preferences of Likely 7 Day Purchasers within different groups. All in all, it’s an impressive transformation in marketing strategy that has yielded fantastic results!
