The Challenge

How do you propel a luxury retailer into profitable long-term sustained growth? For The Designer Box, it meant devising a complex, profit-first strategy to acquire new customers and then increasing their purchase frequency over time. 

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The Solution

We began with a deep dive into the financial DNA of The Designer Box. By taking Average Order Value (AOV), deducting tax and Cost of Delivery (COD), we then pinpointed a contribution target per order. This benchmark shaped our strategy and objectives, guiding us to profitable new customer acquisition targets. Understanding churn rates, repeat rates, and customer cohorts in Shopify provided us with a full diagnostic view of the business.

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Setting Profit Targets

With financial clarity in hand, we set ambitious targets for paid social campaigns. Our approach? Unleash a torrent of creative concepts, each meticulously analysed through the Motion Creative Analytics platform. We optimise around Thumbstop Ratio (TSR), Hold Ratio (HR), Click Through Rate (CTR), and Click to Purchase (CTP) metrics to ensure our strategies hit the profit-first benchmarks. This precision allowed us to maintain a lean new Customer Acquisition Cost (nCAC) while turbocharging order numbers by 155% in 2024. 

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Paid Search Mastery

On the paid search front, we zeroed in on high-performing geo-locations where luxury shoppers flock. By utilising creative placements and precise audience targeting in PMAX campaigns, we tapped into potent search intent, skyrocketing conversion value by 213% whilst increasing CTR by 10% across the board. 

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Elevating Customer Retention

Once we had bolstered customer acquisition we implemented our retention framework; aiming to build long standing bonds with customers. Leveraging Klaviyo, we crafted intricate automated flows and high-converting campaigns. By boosting delivery, open rates, and click-through rates, we elevated returning customer rates by 15%+, turning one-time buyers into brand advocates.

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Financial Holistic Approach

This holistic and financial approach to brand building ensured that every new customer was acquired profitably. Armed with insights into their lifetime value, we nurtured sustainable month-on-month growth, increasing The Designer Box’s active customer base by 35% each month. If churn rates creep up, we know that we need to address this bottleneck, if repeat rates are the issue we have full visibility to nurture that metric. By taking this approach, we are able to pull or tweak certain levers in their ecom ecosystem to drive profitable growth.

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Tools and Technologies

• Triple Whale: The ecom growth tool for full-view attribution and e-commerce growth analysis.
• Motion: The creative analytics software for extracting data on creative performance.
• Klaviyo: The best in class for orchestrating customer cohort analysis and retention strategies.

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Integrating Marketing Channels

By integrating multiple channels, including Klaviyo for SMS and email campaigns, we created a cohesive strategy that significantly boosted The Designer Box's online growth. Each channel worked in harmony to engage customers with pinpoint precision.

This multi-channel approach not only increased customer lifetime value but also provided insights to set and review new customer acquisition targets with confidence. By leveraging the learnings from paid social, we ensured that our SMS and email campaigns were aligned with high-converting content, maintaining consistency.

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Key Metrics

• AOV: The lifeblood metric informing our contribution target per order.
• Churn and Repeat Rates: The compass guiding our customer acquisition benchmarks.
• TSR, HR, CTR, CTP: The engagement metrics that refined our creative strategies.
• CAC: the benchmark for acquisition.
• Ratio: The golden ratio for setting clear acquisition targets and budget allocation.

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Success Beyond Revenue

This profit-first approach didn’t just inflate revenue; it transformed The Designer Box’s customer base. By prioritising profitability and lifetime value, we paved the path for long-term, sustainable growth.

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Key Takeaways

• Profitability First: Dissect your unit economics and set precise contribution targets.
• Creative: Use data-driven insights to continuously refine your creative arsenal.
• Tools and Tech: Embrace platforms like Triple Whale, Motion, and Klaviyo for unparalleled insights.
• Retention: Develop robust SMS and email campaigns to engage and retain your customers.

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The Result?

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For The Designer Box, this profit-first strategy has been a game-changer - and we’re now scaling sustainably through 2024.

By harnessing data, creativity, and relentless optimisation, we have seen results drastically increase for The Designer Box. 

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