Variety Mode

Background

Variety Mode, a new D2C e-commerce brand in the adaptogen space, sought to launch its online presence and achieve significant revenue growth within the first six months of operation. The brand aimed to implement a monthly recurring revenue (MRR) model and maintain a low net cost per acquisition (NCPA).
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Challenges

• Establishing a strong online presence quickly in a competitive D2C market.
• Achieving a high subscription renewal rate for sustained revenue.
• Maintaining a low NCPA while scaling up advertising and customer acquisition.
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Strategy Implemented

1. Performance Campaigns: Implemented a series of targeted performance campaigns across Meta platforms focusing on customer acquisition and brand awareness.
2. Performance Monitoring: Utilised advanced analytics to monitor performance metrics including sales, website traffic, and advertising spend.
3. Cost Management: Kept a tight control on the CAC cost, aiming to optimize ad spend while maximizing reach and conversions.
4. Subscription Model: Promoted a subscription model to ensure a steady revenue stream through recurring payments.

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Results

• Total Sales: Achieved over £300,000 in sales within the first 180 days.
• Website Performance: Significant growth in online store sessions, reaching 222,713 sessions.
• Advertising Efficiency: Mantained an average NCPA between £5 to £6 across Meta campaigns, optimizing spend and maximizing conversion rates.
• Renewal Rate: Successfully attained over a 35% renewal rate onto the subscription model, indicating strong customer retention.
• Lifetime Value: Ensured that the LTV of our customer allowed us to achieve over a 6X ROAS overall.
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Analysis of Key Metrics

• Reach and Impressions: The campaigns reached up to 497,759 accounts and garnered 1,270,560 impressions, illustrating the high visibility and extensive reach of the advertising efforts.
• Cost Efficiency: The detailed cost per result analysis helped in reallocating budget towards higher performing ads and discontinuing underperforming ones.
• Conversion Tracking: Ensured that CAPI was deployed across pixel tracking to allow Meta to report back the most accurate data possible.

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Conclusion

Variety Mode’s strategic approach to launching and scaling its online presence through targeted advertising and a robust subscription model proved highly successful. By maintaining a focus on key performance indicators, adjusting strategies in real-time, and prioritizing cost-effective customer acquisition, Variety Mode not only achieved but exceeded its initial revenue goals. This approach has set a strong foundation for sustained growth and continued success in the D2C e-commerce sector.

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