Driving 124% Growth In New Customer Revenue

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We partnered with Broya initially in September 2023 to manage paid acquisition on socials and search, creative strategy and development, and financial modeling and forecasting. After operating together for a quarter, email and SMS were also integrated to drive business-wide growth more efficiently.

When we began working together, our focal point was to build and implement a sustainable and profitable growth plan backed by historical data, allowing for continued growth and a clear path to scaling. With Q4 upcoming, step one in this process was to ensure we developed a plan to maximize growth throughout this period.  his involved improving the paid acquisition strategy with a heavy emphasis on creative, and leveraging financial modeling and forecasting to determine the optimal growth rate at which Broya could scale while maintaining profit goals and inventory requirements. This ensured that while we pushed for growth in Q4, we set Broya up well for continued sustainable growth in Q1 2024 and beyond.

The results:

• Scaled new customer revenue by 124% year over year (YOY) in Q4
• Scaled spend by 128% YOY in Q4 
• Maintained consistent new customer ROAS while aggressively scaling spend
• Drove 74% YOY growth in Q4 (Note: With the big push on paid acquisition, large volumes of new customers were acquired. The compounding return customer revenue from these cohorts of customers lags, meaning the revenue growth driven by these return customers will not be realized in Q4 of 2023.) ‍‍

Paid ads:

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Our primary objective was to increase the volume of new customer sales while maintaining acquisition efficiency.

We made initial improvements by adjusting attribution to be predominantly click-based on Meta, given that this channel is the primary driver of new customer volume. This allowed us to ensure we were feeding Meta with data that was more closely correlated with net new customer sales.

The second main opportunity was to increase the volume and variation in the creatives being used. We focused on creating more variety instead of solely running with pre-existing winning formats. This allowed us to scale spend during the peak months of the year and maintain efficiency. The reason we prioritized having a variety of creative formats being ran in Meta going into the peak months was to ensure we had options for Meta to pick from when serving to prospective customers. With more ad formats being ran, Meta has more opportunities to serve the optimal format to potential customers. 

On Google, we focused on keeping high ROI non-branded search running to capture pre-existing search demand, as well as spillover demand created from our aggressive scaling on Meta. 

Financial Modeling & Forecasting: 

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With Broya being a consumable product, scaling sustainably and profitably requires growth planning based heavily around retention and LTV. By utilizing historical cohort data we were able to build a model to estimate aggregate return customer value by month over time. We then took the historical new customer acquisition metrics and referenced recent data to estimate the number of new customers we would acquire, proceeding to build ad spend around net margin targets. This allowed us to plot a plan for maximum growth while maintaining margin requirements and execute against it accordingly. With a successful Q4 under our belt, we moved on to building a 12 month growth plan based on historical data and plan on executing against it throughout 2024.

Email & SMS: 

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After a successful Q4, we began working on the retention marketing side to drive business-wide growth more efficiently, involving email and SMS marketing management.

With a large volume of new customers acquired in Q4, and Broya being a consumable product with high repeat purchase rates, there was an opportunity to drive revenue growth through these cohorts of customers acquired in Q4. Additionally, with improvements made to signup units list growth was a core focus immediately. 

In January we were able to drive the following YOY results: 

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• Increased email revenue by 154% (2.5x) YOY
• Increased SMS revenue by 311% (4x) YOY
• Increased overall email newsletter list size by 19.4% compared to previous 10% bi-monthly growth rate
• Increased SMS mobile opt-in conversion from 4.3% to 6.7%