Marketing Case Study
How a Subscription Brand Increased
CLV 73% by Optimizing Promo Codes
Increase in CLV
Increase in AOV
Increase in Retention rate
A Subscription brand was having trouble understanding why their Customer Lifetime Value was lower across campaigns where they had the greatest Return on Ad Spend. The campaigns driving the highest volume of acquisition didn’t seem to be delivering the quality of customer needed to remain profitable.
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.