Revolution Boutique Case Study

Explore how our innovative marketing strategies transformed Revolution Boutique, boosting new customer acquisition and enhancing customer LTV. Discover our journey from diagnosis to remarkable results, including a significant increase in ROAS and effective repeat purchase strategies for sustainable growth.

9.14x

Return on ad spend

$23.81

Customer Acquisition Cost

The Diagnosis:

Revolution Boutique, a Canadian fashion destination, offers a unique blend of online and in-store shopping experiences. While they maintain a robust online presence, their heart lies in the immersive physical retail environment they provide to their customers.

Prior to our collaboration, Revolution Boutique was partnered with a different marketing agency. Although this previous agency maintained a satisfactory performance, they didn't deliver exceptional results beyond justifying their monthly retainer.

Our journey with Revolution Boutique began without any glaring issues on the surface. However, the cornerstone of an effective strategy is a precise diagnosis. What exactly were we aiming to improve or solve?

During our initial assessment and onboarding process, a significant insight emerged. The former marketing agency had disproportionately focused on the online store, neglecting the fact that the lion's share of revenue originated from the physical retail outlets.

Acknowledging this, we pivoted towards an omnichannel marketing approach, integrating the physical store into our broader marketing initiatives.

A major challenge presented itself: the lack of measurable metrics for in-store performance. Without concrete benchmarks or targets, assessing the impact of our strategies was nearly impossible.

To address this, we developed a custom dashboard, integrating data from in-store sales and Facebook marketing. This tool provided comprehensive insights into key metrics such as Marketing Efficiency Ratio (MER), Average Order Value (AOV), Lifetime Value (LTV), Customer Acquisition Cost (CAC), adjusted MER, Repeat Rate, and Return on Ad Spend (ROAS) across various campaigns.

The dashboard revealed a critical issue: new customer acquisition was significantly lacking.

With this data, we set a Customer Acquisition Cost (CAC) based on predicted LTV.

The Strategy:

Our strategy focused on one primary objective: boosting new customer acquisition.

How did we achieve this? By creating irresistible offers.

Execution:

These compelling offers were launched as lead-generation campaigns on Facebook, complemented by catalogue retargeting ads. Utilizing unique discount codes, we were able to track the efficacy of each offer and conduct comparative analyses.

Results:

Our targeted strategy, centred on generating compelling new offers, yielded remarkable outcomes. We achieved an impressive Return on Ad Spend (ROAS) averaging 9.14. This metric not only demonstrates the high efficiency of our advertising spend but also underscores the effectiveness of our tailored campaigns.

Moreover, the strategy significantly optimized the Customer Acquisition Cost (CAC), bringing it down to $23.81. This figure notably undercuts our initial target CAC, reflecting the cost-effectiveness of our approach in attracting new customers to Revolution Boutique.

These results signify not just a quantitative success in terms of numbers but also a qualitative leap in aligning the marketing efforts with the client's unique blend of retail and online store strengths.

Next Steps:

As we forge ahead, our primary focus remains on scaling new customer acquisition while simultaneously enhancing the Lifetime Value (LTV) of each customer. A crucial observation from our initial analysis revealed that the repeat purchase rate among existing customers was not as high as anticipated. This insight is pivotal for the next phase of our strategy.

In response, Revolution Boutique is actively implementing targeted strategies aimed at encouraging repeat purchases. These initiatives are designed to deepen customer engagement, fostering a sense of loyalty and connection with the brand. By enhancing the shopping experience and offering incentives for repeat business, we aim to increase the frequency and value of purchases made by existing customers.

This dual approach of attracting new customers while nurturing existing relationships is a balanced strategy. It not only broadens our customer base but also solidifies the foundation of our recurring revenue streams. As we elevate the LTV of our existing customers, we create more room to aggressively pursue new customer acquisitions, fueling a cycle of sustainable growth and brand expansion for Revolution Boutique.