$28.6MM Online Sales in a 5-Month Period. ROAS of 70X (Google Ads), ROAS of 15X (FB/IG Ad)

THE CHALLENGE

There was a slight moment of sheer panic when the lockdown was mandated in many parts of the country around mid-March this year. In the US and Europe, traditional fashion channels especially brick-and-mortar retailers, and wholesale business models have been among the categories hit hardest by COVID-19.  In contrast, sophisticated digital-native direct-to-consumer brands have been experiencing massive growth like never before. This particular client of ours [Log on HERE to see brand information] is a mid-sized apparel company out of Los Angeles, California. In 2019, the brand generated over $16MM in total online revenue where over 55% of the revenue came during Q4 2019 or the holiday season. They initially were unsure whether they had to scale back their marketing campaign or to stay the course because of the uncertainties created by the pandemic. We only had 3 days to do an in-depth analysis before we present our findings to the CEO, CFO, and CMO of the company. 

THE SOLUTION

What we do here at DIVISA, we tailor-make our strategies to directly suit our clients’ needs. One of several major areas of excellence we focus on is Data Science and Business Intelligence where we deploy state-of-the-art machine learning data processing and visualization solutions, allowing us to collect and take a deeper look at the data by measuring historical data against several external industry data to gain an understanding of a situation and insights to determine which action our clients need to take to either capitalize on an opportunity or mitigate a threat. Leveraging that technology, our team then creates all favorable outcomes or scenarios and suggests which courses of action needed to be taken to reach a particular outcome.
We identified several different sales opportunities that our client had never been in before. One, leveraging their existing high LTV clients. Two, cross-selling opportunities by pushing proven winning products hyper-targeting a certain group of customers who had not viewed nor purchased those products in the past. This process was done through our machine learning platform creating smart, unique product pairing suggestions through behavioral analysis. The products are then being pushed dynamically through several advertising channels, mainly FB, IG, Google Display, and E-mail marketing. Three, increasing customer retention efforts targeting specifically the lower LTV segment with buying frequency of one and two purchasers.

RESULTS

• Between March and July 2020, we were able to exponentially grow the store’s daily order number from 250-300 orders (YoY – March 2019 to July 2019) to around 700-800 orders per day.
• We’ve also increased the AOV by 12.56% from $223 to $251 (YoY)
• Google Ads generated over $17MM in revenue between March 1, 2020, and July 31, 2020 (a 5-month period during the pandemic) with a ROAS of 70.27 and $242K ad spend.
• FB and IG ad generated $11.6MM in revenue between March 1, 2020, and July 31, 2020, with a ROAS of 15.x and $748K of ad spend.
• We strongly believe that based on our revenue forecasting and demonstrated demand for products, the brand positioning in the market, sophisticated digital strategy, and the current business momentum, thanks to the dramatic market shift to digital, it is very likely the company could reach over $60MM in total revenue this year.