In this post, we will share our insights and case study on how we grew an e-commerce clothing brand.
we will keep it as short and straightforward as possible.
70% of revenue came from returning customers.
They didn’t know their target CPA numbers. When they advertised, their target CPA was $15
They didn’t know their LTV numbers
They were advertising all the products that they had, and only a few were generating thems sales
They were testing 1-2 new ads a month, and for the most part, they ran the same creatives repeatedly for the last 3 months.
They didn’t have any email flows to retain more customers, although 70% of their monthly revenue came from fan customers, which meant the products were really good.
WHAT DID WE DO TO GROW THIS BRAND?
- We calculated all the numbers to set a clear target cost to acquire new customers
- Instead of advertising all the products, we found that most sales came from 5 dresses.
So we set our focus only on those 5 dresses.
3) New creatives – previously, I mentioned that they were testing 1-2 new ads a month.
Well, we started our ad launch we 40 ads showcasing the dresses in multiple videos like:
– dress time capsule hacks for summer
– 3 reasons why you will love this dress
– 3 reasons why I hate these dresses ( negative angles also work)
4) We simplified the ad account structure with just 2 campaigns
– Campaign for women with multiple testing ad sets showcasing best-selling dresses
– Campaign to join their special email VIP list to grow their email list.
All the campaigns used complete BROAD targeting, no retargeting ad sets, no interests, and no lookalikes.
We let ads do the targeting.
Multiple ads had a frequency close to 2.0, meaning those ads were already retargeting.
5) Regarding the email – we built :
– New welcome flow –
– VIP Flow –
– Birthday flow –
– We miss your flow
– Cart abandonment flow.
By building these flows, we let email and SMS focus on customer retention rather than running Facebook retargeting campaigns
A month after doing this, 80% of monthly revenue came from new customers.
We grew to $60 000 per month, staying for three months while the brand sorted out its inventory and focused on developing new dresses for limited availability drops.
THE CURRENT SITUATION
- Currently, this brand is doing $100k – $120k in monthly sales.
- 71% of revenue comes from new customers
- 29% comes from returning customers
- The average AOV is $92.43
- Our Cost to acquire new customers is $55
- Our LTV is $180+ and growing
- Every 6 weeks, we launch new dress drops planned for a year.
- All of this is without any monthly discount campaigns, pure product.
- We run a discount once every 4 months and generate around $280 – $300k in that period.
- We still don’t use retargeting campaigns.
- Customer retention is being handled by email & SMS.
THE NEXT STEPS
- We are implementing a loyalty program where we will offer cashback after a certain amount of spend in the store that will be kept as store credit and can be used in the next purchase.
This will incentivize people to come back and spend more, which will result in raising our LTV.
- Conquer new markets to grow to $300k monthly without sales campaigns. After a year, we can finally do that because we have a healthy profit margin and good customer retention.
- Develop new products that people love.
Thanks for reading.