Taking a JV Partner from Sub $1M/Year Unprofitable to $3M/Year Profitable

Transforming a Men’s Brand from $1M/Year (Unprofitable) to $3M/Year (Profitable)

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In this case study, we showcase how a struggling men’s brand was transformed from generating $1M annually at a loss to a thriving, profitable $3M/year business. By cutting nCAC (New Customer Acquisition) in half, boosting retention, and leveraging a a simplified approach across core platforms.

The Challenge

The brand faced a series of growth roadblocks:

• High New Customer Acquisition Cost (CAC): Skyrocketing ad costs made it hard to stay profitable
• Low Retention Rates: Weak customer loyalty stunted lifetime value
• Unclear Process: Lack of focus on the things that will move the needle (rather than the noise)
  

Our Approach

We implemented our proven core process, outlined below:

Platforms and Execution

• Meta Ads (Facebook/Instagram): Consolidated account, focussed on solely on BidCaps
• TikTok Ads: Accelerated content output and testing using our testing methodology
• Google Ads: Simplified, dialled in SHOP and SEARCH.
• Klaviyo (Email & SMS):some text
  • Implemented a killer opt-in to accelerate email and phone number acquisition
  • Built robust email and SMS flows
  • Increased email and sms send frequency with key engagement strategy
• Shopify: Tested LP’s and optimise on-site offer and function

Relentless Testing: We conducted over 5,500 ad tests, leaving no creative or angle unexplored.

The Results
The results speak for themselves:

• Revenue Growth: From $1M/year (unprofitable) to $3M/year (profitable) at 10% Net Margin
• Halved CAC: Achieved a 50% reduction in customer acquisition costs
• Accelerated Retention: Improved email/SMS engagement and repeat purchase rates, driving customer lifetime value
• Dialled in Core Platforms: Meta, TikTok, and Google Ads combined with Klaviyo

Key Takeaways

• Volume is Key: Testing over 5,500 ads revealed critical creative and messaging insights
• Integrated Strategy: A multi-platform approach critical for generating and capturing demand
• Retention Drives Profitability: Increasing retention helped drive improved profitability
• Optimised CAC: Combining creative innovation and precise targeting significantly lowered ad spend per acquisition

Conclusion

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This case study highlights the impact of relentless testing, strategic simplification, and a laser focus on the key aspects that will move the needle. With solid execution, even an unprofitable brand can turn things around to achieve scalable, profitable and sustainable growth.