Kids Clothing and Swimwear Case Study

Profitable Growth in 2023!

500% growth in First Time

Customers

76% CPA Decrease

Worried about over-reliance on a single marketing channel?

Challenge They Faced

Good ROAS in ads manager with advantage+ shopping campaigns but not getting new customers
CPA
Reliance on discounting
High returning customer rate of 80-90%

What We found

The current customer base is accustomed to heavy discounting
New customers should be incentivized without the use of a discount as the likelihood of a repeat purchase is high regardless.
We also found that they were emailing new subscribers who have not purchased yet much more frequently than they should be - 7 emails in as many days, and some back-to-back, which can cause new subscribers to feel over-communicated.
Most of the campaigns set a 10% budget cap for existing customers.
Computing based on FB tracking for audience type, 87% of the account budget is going into prospecting. However, if we have to look in terms of new & returning customers in Shopify almost 80% of revenue is coming from returning customers. If we were to look at the account's frequency last 30 days it would be around 5.28x.

The upGrowth Solution

We restructured how a sale campaign was set up in Facebook, and instead of using Advantage+ like they do in other campaigns, we focused on a much more broad / interest-based TOFU. We were able to increase new customers drastically, as well as reduce CPA.
We also provided some recommendations to get away from discount offers, but framing up the free print gift bag with every item purchased, as a free gift with every item purchased- they had not thought about this in this way previously, but recognize that it is a huge value add for customers.

The Results

Biggest Pain Point

The returning customer rate was between 75-88% in the months leading up to hiring upGrowth. They were struggling with acquiring new customers and getting that returning customer rate down