Establishing the right KPIs with a new client
We began working with a direct-to-consumer cookware brand with the goal of helping them effectively scale and acquire high-value users.
Establishing the right KPIs to drive additional revenue
Our client was initially focused on acquiring new users for as little cost as possible. The KPI focus was on CPA and short term-ROAS. We needed to determine ways to acquire users who were likely to drive additional long-term revenue for the brand and maximize on our paid growth efforts.
Focus on driving first-time purchasers to SKUs that yielded additional revenue both on the first purchase, and on items that had high repeat purchase rates. When we took over the ad account, the client was trying to acquire as many users as possible under a strict CAC goal- this resulted in users who were less invested in the brand and would churn out after buying one of the brand’s lowest priced items- a $35 sheet pan. This meant that the first-time purchaser CPA was critical and ultimately limited their ability to scale.
We utilized our growth analytics capabilities to help interpret user data that signaled better long-term outcomes. In practice, we shifted the primary KPI to user-LTV and focused on acquiring users who were more invested in the brand and making first time purchases that were much more valuable- such as dutch ovens and family style sets
By shifting our acquisition investments from sheet pans to ‘high-value SKUs’, we were able to increase our overall return on ad spend by 109%! More importantly, we were able to build trust with the client to scale their growth program well past the cap that a low-CPA target was previously limiting them to. Finally, as part of our long-term framework, we were also able to achieve an increase in the monthly revenue of newly acquired cohorts.
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