How We Lowered Customer Acquisition Costs from $138 to $60
in just 14 Days for BeautyStat
The Challenge:
BeautyStat, a 7-figure DTC skincare brand, approached us after being burned by two agencies—big names in the industry that couldn’t solve their biggest pain point: sky-high Customer Acquisition Costs (CAC).
BeautyStat’s CAC was stuck at $138, and they needed a way to slash that number quickly while maintaining conversion rates.
Could we take them from a CAC of $138 to a more sustainable $60 in just 14 days?
Background
BeautyStat had all the fundamentals in place—popular products, a solid following, and a clear market presence. But despite their success, they were unable to get their CAC under control.
Our mission was to identify the missing elements in their digital strategy and reduce CAC without compromising their sales funnel.
Step - 01
Implementing the ARDF Model (Acquisition, Retention, Data Analysis, Forecast)
We introduced BeautyStat to our ARDF Model—a comprehensive 4-stage process designed to drive sustained growth and profitability.
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Acquisition:
We focused on acquiring new customers profitably by creating unique, brand-tailored ads. This involved implementing a structured creative process and a robust influencer marketing system. -
Retention:
Boosting customer loyalty became a key part of the strategy. Retention strategies were deployed to drive up BeautyStat’s lifetime value (LTV), ensuring every new customer become a long-term brand advocate.
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Data Analysis:
We leveraged expert data analysis to manage ongoing success, using insights to optimize campaigns for maximum performance. This allowed us to monitor the impact of ad spend on profitability and make data-driven decisions. -
Forecast:
Using advanced forecasting, we ensured that BeautyStat scaled their marketing efforts profitably, focusing on long-term growth without overspending on acquisition.
Step - 02
Influencer Whitelisting System
To enhance BeautyStat’s reach and trust factor, we implemented an influencer whitelisting system.
We partnered with key influencers in the beauty space, giving them permission to run ads through their own handles. This added a layer of authenticity and social proof to the campaigns.
With whitelisted influencer ads, we were able to tap into new audiences and lower acquisition costs even further, as audiences responded better to authentic recommendations.
Step - 03
Putting a Creative Process in Place
One of the initial challenges was the absence of a defined creative process.
We developed and implemented a systematic process for testing creatives, ensuring that every angle and theme was optimized for performance.
This allowed BeautyStat to continuously refresh their ad creative and stay relevant to their audience.
Step - 04
Leveraging User-Generated Content (UGC)
To increase relatability and authenticity, we incorporated UGC into the creative strategy.
By featuring real customers using the products in everyday life, we added an extra layer of trust and social proof to the ads.
This helped drive conversions and lower acquisition costs while improving ad performance.
Step - 05
Testing New Themes and Angles
We consistently tested new themes and messaging angles, from emphasizing BeautyStat’s innovative skincare formulas to product-specific benefits.
This approach helped us identify the winning combinations of creative that resonated best with their audience and ensured profitable scaling.
Result
By focusing on a structured creative process, leveraging UGC, applying our ARDF Model, and incorporating an influencer whitelisting system, we decreased BeautyStat’s new customer acquisition cost by 18%.
Profitability improved by 12%, and we successfully scaled their ad spend by 40%. These combined efforts helped BeautyStat achieve their goal of profitable customer acquisition while continuing to grow.
Key Takeaways
- The ARDF Model provides a clear roadmap for profitable growth.
- A structured creative process is essential for optimizing ad performance.
- Influencer whitelisting adds authenticity and drives down acquisition costs.
- Regular testing of new themes and angles keeps ads relevant and cost-efficient.
Next Steps
Our next focus is expanding BeautyStat’s presence across other platforms while continuing to optimize Meta ads for even greater profitability.