Scaling to 4.5Cr. With a profitable 7.8x ROAS
The challenge
- Developing Omnichannel Offer Strategy
- Gathering major sales in a limited time Period.
- Targeting old and previous customers.
- Managing ad funds for the entire for the entire sales period.
The result
- 1048% revenue increase
- Did ₹4.5cr in sales with less than ₹95 lakhs in ads spend.
- Increased profitability
- Systemized marketing funnel for long-term growth
What you will learn from this case study…
✅ The Importance of Branding blended with marketing.
✅ Why you’re wasting your money on useless ads
✅ How to create offers that are irresistible to the customers!
✅ How to capitalise on your customer base more effectively than ever before.
Introduction
We started working with this brand at the beginning of April 2022. This business primarily sells Streetwear clothing to the Indian market.
In our prescriptive analysis phase for this client, we noticed that the brand had become a well known identity but wasn’t leveraging there brand audience to increaser there revenue and was wasting a lot of money on acquiring new clients.
The brand was averaging ₹ 7 Lakhs in sales per month with a ROAS of about 6.8 but wasn;t able to move forward with the sale for the past couple of months.
A key focus for this brand was profitability and scaling at the highest possible level... We knew that with our campaign management team, and growth hacking techniques, there was serious progress to be made.
Planning
The business didn’t have much but a consistent cash flow coming in daily with good profit margins. The brand had huge overheads to be taken care of and to do that had to increase its sales per day to increase there profitability by scaling.
It made perfect sense for our team to create the best variable access for Instagram Ads and Facebook ads as the majority of the audience for this business lay in these 2 platforms.
The brand had an average of 32% recurring website visits this meant that people were interested in the product and were coming back to see if the price had been reduced so we had to plan a huge discount that would last for a few days so people had to take its benefit within those few days Itself.
Tracking
Allocating the budget in the correct place is essential for predictable growth and when you’re targeting big goals in a shorter period of time. For a brand to run a successful Sale campaign it has to go through its analytics and that’s what we did.
We planned our Makrting outlet 2 weeks prior to the launch and started boosting heavily on the idea of big sale offers coming to the customers.
Heavy spending means critical work on all the ads separately so need to push out each and every ad so that no budget is wasted as there’s less time to recover.
Leverage
After taking a broader view of the marketing funnel we noticed a huge pool of past customers that were not being leveraged. A famous law of marketing is that 80% of your sales come from 20% of your customers.
So we built out a Hard Push Retargeting system.
A Hard Push Retargeting system essentially segments out the top 20% of your customers and treats them with discounts, offers, new product drops, and much more. This means that brand loyalty skyrockets which increases lifetime value and ultimately results in way more profit. We initiated this system just a few weeks into our partnership with this brand and the e-mail revenue jumped from 16% to 33% in a matter of days.
Scarcity
Scarcity and urgency are tools that can be implemented into most brands without upsetting your potential customers… It just needs to be used at the right time and in the right place. Audience segmentation across all platforms allows us to increase the relevancy of an offer to the potential customer. For example… We can create a list of potential customers that were extremely close to pulling the trigger on a sale and fire hyper-relevant offers to them across each of our marketing channels.
This level of attention and proactivity is required for brands hoping to achieve respectable numbers. We call these marketing campaigns and events ‘revenue squeezes’ and they were achieving close to Rs.1.2Lakhs per day for each campaign.
Creatives
Above everything, a focus on new creatives and angles was the main driver behind this brand's success. Developing a successful creative format was essential for us to understand where we could double down our marketing Rupees. A successful creative format can be iterated on, over and over again.
The way people are consuming content has changed vividly from just a few years ago and now UGC content combined with dynamic ads are leading the charge with our results. This led us to develop our script-writing team to ensure ads were extremely compelling and up-to-date with trends. We also built out a video editing department in order to re-use and develop more creatives from single video shoots, this reduced the cost of video production and massively increased our ad ROAS.
Conclusion
Having a clear roadmap and expected destination helps us smash deliverables when they need to be executed.
This brand struggled to escape its state of entropy and needed a clear plan of action combined with new-age marketing techniques to scale to the next level.
Brands need to be conscious of upcoming marketing opportunities as the landscape for DTC changes so frequently. A small shift in creative strategy and platform led us to increase this brand's revenue and overall profitability of the business.