This is my favorite case study of all. It’s relatively simply to acquire new customers, but working out profit per new customer (taking into account media spend, product, business and administration costs) in order to determine the £ value left in the bank (or Google Analytics) after acquiring a new customer is something that many businesses struggle to identify and often neglect. The objective here was to profitably acquire per new customer across digital acquisition channels.
With platforms like Google & Facebook making it very easy for online brands to spend (and waste) huge amounts of money, it’s essential to segment, integrate and optimise at an extremely granular level with a data-led model which allows us to make micro and macro optimisations across Paid Media campaigns and audiences, whilst also measuring costs, margins and ultimately profits in real-time.
This approach allowed us to go from making a net loss of -13% when acquiring a new customer during month 1 (eventually turning into a profit after month 12 and multiple repeat orders), to generating a net profit of 11%, which then increased to 30% within the first 12 months, due to increased repeat orders at decreased costs to the business.
