Due to an open funding round the brand behind the below case study has requested to stay anonymous for the time being. For now we will refer to them as Supplement Co.
Return on investment
Customer acquisition cost
Return on ad spend
Average order value
A UTM (Urchin Tracking Module) code or UTM parameter is a code that can be added to any URL that helps track advertising campaigns and can be used to create variables to segment traffic.
Key data that directed the strategy...
The top converting paths were email and paid ads
The average subscription length was 4 cycles
Email had by far the best ROI.
This would mean we would start with the highest engaged customers and, theoretically, the highest ROI tasks. These efforts would also compound later on, from saved time and resources, when we start driving fresh traffic in knowing that multiple touch points are automated further along.
Who are your ideal customers?
What are your best performing marketing channels?
We then segmented that demographic off and pooled data from:
... And compiled a detailed customer persona with both demographics and psychographics. This gave us an in-depth perspective of their ideal customer that we would then use to guide content creation for email, ads and all other aspects of marketing.
A slice of Supplement Co.’s customer psychographics...
As a small company, we knew out the gate that marketing efforts needed to be concentrated on one or two core channels. There wasn’t the time or resources to do well in more than two channels so we needed to evaluate the current marketing efforts to see what was working and what wasn’t.
Taking a look into the top conversion pathways along with channel ROI, it was clear that email and paid ads made up the bulk of the touch points to purchases, with email by far having the best ROI.
From here it was a logical choice to make email the starting point, as the financial investment was minimal and it also checked a lot of the boxes with regards to automation and creating more touch points for customers.
General marketing performance:
Looking at the ad data, we could see that they weren’t performing as well as could be. We decided to plug losses, cutting Facebook ad spend to zero and reducing Google ad spend right down until we could figure out what the issues were (or if there were in fact issues, we will come back to this later).
We were confident that the increase in email revenue would, in the short term, make up the drop in revenue from ads (and it did) and we would also save any losses before the fact.
Moving forward, throughout this process, we wanted to create a segmented structure (buckets, if you will) that we could move customers through with only a forward direction. This would minimise maintenance in the long run as customers would only ever be in one ‘bucket’ at once and would only see the marketing messages once.
“How can you turn your customers into your advocates?”
“How can you move customers to repeat purchasers?”
“How good is your customer’s first experience?”
This was more complex than the old email set up, adding another 8 emails for the Swell milestone sequence alone.
We wanted to have email automation providing 15% of total revenue, with email as a whole providing 30% of total revenue.
(Email hit 31.5% of total revenue in month 2 which was encouraging.)
To get these flows to perform exactly how we wanted them to we used the one and only Klaviyo. It gave us the flexibility to get granular with the flows, automation and email blasts. Also drawing on our earlier research into the customer psychographics to create compelling email copy and target pain points.
Once we had set up the automations, we doubled down on email marketing consistency for updates, promotions & general engagement.
After creating a general template we outsourced the creation of these 'blasts' which we approved weekly to send out on the coming Monday and Wednesday.
What was really positive is we didn’t see any significant increase in unsubscribes due to the new email structure.
NB: At this stage, we didn’t have all of these flows up and running, but we were still seeing awesome results!
Email management now took less than an hour a week in total!
"How can you create communication channels with your customers?"
“Where are your customers coming from?”
For one of Supplement Co.'s products:
From here, the final hurdle is to take a customer from the first touch to first purchase. Which we intended to due using Facebook ads.
We intend to structure the ads in a way that customers HAVE to go through the all the stages of the ad funnel. This can be done by using UTMs and pixel segmentation.
Video testimonials > Landing Page > Retargeting > Retention
Customers who follow the entire journey have been proven to have a higher LTV than customers who don’t...
Lifetime value from non-Facebook customers*:
Lifetime value from Facebook acquisition (purely Facebook)*:
Also by ensuring that customers have to follow each stage of the funnel, once they have purchased for the first time they are then moved through to email marketing and would only receive retention and top of mind ads.
This would mean that customers would only make this journey once and that the need to replace these assets, once optimised, would be minimised.
If you’d like to work with us then send us an email here and we can sort a time to chat about your business & goals.