After working with the merchant, we quickly realized that they were investing ad spend based upon top line Custom Acquisition Cost (CAC) metrics, but no looking at the long term user behavior. After leveraging Sublytics’ insights, we were able to determine that their deep promotion offering 50% off the first box, led to high volume and low Customer Acquisition Cost (CAC); however, the customers quickly churned, resulting in unprofitable ad spend.

With these insights, the merchant split tested new promotional strategies to determine the sweet spot for driving high converting traffic that was truly aligned with their product value prop. With access to real-time user behavior data, they determined the discount range that was competitive enough to incentivize qualified target customers to convert, while not diminishing their brand and profit margins. This new promotional strategy lead to an increased retention rate and CLV, as their customers were more aligned with the brand’s core value proposition and less focused on deal-seekers.