The Client.
Operates a series of restaurants serving modern Chinese street food.The business aggressively scaled during the global pandemic, and they decided to pivot to a DTC (direct-to-consumer) model, delivering their product to people’s home.
The Challenge.
Our client wanted to scale fast, which meant:
- increasing monthly ad spend fast
- new creatives
- email marketing
- paid social scaling
- customer retention strategies
They also wanted to maintain their cost per acquisition (CPA) and return on ad spend (ROAS), to ensure sustainable growth. The main areas we focused on were increasing their Average Order Value (AOV) and increasing the Lifetime Value (LTV).
We worked on all areas of marketing across a much wider strategy, with a particular emphasis on email marketing to increase the LTV and decrease CPA.
When we started working with our client they had a Klaviyo account but with no email flows set up or any campaigns sent.
The Strategy.
Lifetime Value Optimisation
Whilst working with our client, we helped them identify the key metrics around their customer lifetime value and retention, including all of the levers they could pull to improve performance:
- Average Lifetime Value of a customer
- Repeat order rates
- Churn rates
- Segmenting traffic by key personas and demographics
- Highest quality cohorts of traffic, which can be based on many factors
An example of some of the areas we would look at are…
- Product entry points
i.e. Coming into the funnel on a trial/tester pack versus a full-priced purchaser - Time-based
We’ve found that by comparing different months, years, seasons, we could identify high performing cohorts of traffic. From this, we looked to determine what was implemented during that period to replicate it. - Discounts
Understanding how different discounts levels affect the lifetime value of a customer - Influencer/Social Proof
By looking at the data, we can identify the entry point into the brand. If this is via an influencer or high profile/tv press release, the data will tell us whether the customer will have a higher or lower average lifetime value or not.
Based on our analysis;
we designed a strategy to increase the lifetime value of each customer:
We first mapped out the customer’s journey:
- Purchasing
- Delivery
- Using the product
- Reordering
Then we designed different messages and flows for each step of the customer journey.
We built out an extensive customer retention funnel, leveraging email marketing and SMS (text messages).
THE RESULT
Our client went from 1.8 repeat orders per customer with a Lifetime Value (LTV) of $126.
We increased this to 3.1 repeat orders per customer with an LTV of $217.
This increase took place within the first 6 months of us working with the client and is continuously improving and being worked upon.
We developed an entire email marketing plan for the client, which consisted of 5 different automated sequences, from abandoned cart flows to customer win-back flows.
Within this plan, we mapped out the customer journey and the objective of each email.
We prepared all of the content for each of the email flows, including copywriting, banners, images, automated product feeds.
We also segmented audiences based upon actions taken on the website, and within each email flow, to move people through each stage of the customer journey.
THE RESULT
Email marketing wasn’t a revenue stream that our client had tapped into before working with us.
Using Klaviyo as their email marketing platform, we took a phased approach by building 2 email flows per month which generated $197k within the first 4-months.
This was 17% of their overall revenue with no additional marketing spend!
Out of all of the email flows we built, the Abandoned Cart flow out-performed all other flows by generating 70% of the revenue overall.
The Results
* All results are based upon a 12-month period
Based upon all of the above, a combination of implementation and consultations enabled us to achieve the following for our client:
- During the course of the past year, we have scaled our client from $50k months to over $100k months and are now in a position to scale this even further!
- With an average spend of $15,000 per month, we managed to maintain the CPA at $15 at an average Return on On Ad Spend (ROAS) of 6.
- Using Klaviyo as their email marketing software, we took a phased approach by building 2 email flows per month which generated $97k within the first 4-months. This is 17% of their overall revenue with no additional marketing spend!
- There was an uplift in the conversation rate for each new landing page, with an average increase of 2.7%.
- Cost Per Acquisition (CPA) dropped from $15 to $10 Return On Ad Spend (ROAS) increased from 4.7 to 7.4 for traffic coming from Facebook & Instagram Ads.
- From 1.8 repeat orders and a Lifetime Value (LTV) of $126, to 3.1 repeat orders and a LTV of $217 within 6 months. This is continuously improving and being worked upon.
