Growing a D2C brand from ₹9 Lacs to ₹30+ Lacs in just three months is no small feat—especially in a category like home décor, where challenges like inventory management and retention are prevalent. In this blog, we’ll break down the exact steps ROI Magnet took to achieve this milestone for one of its clients, highlighting strategies, tools, and optimizations that contributed to this success.
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The Challenge
When ROI Magnet onboarded this home décor brand in mid-September, they faced multiple roadblocks:
Inventory Issues: Delays in stock replenishment hampered November’s growth.
Checkout Friction: High instances of fake orders and low prepaid payment adoption.
Audience Understanding: No structured campaigns to target high-converting audience segments.
Retention Limitations: Minimal focus on repeat purchases despite a growing customer base.
Key Strategies Implemented
Comprehensive Brand Audit The first step was understanding the brand category, its audience, and the competitive landscape. This audit provided insights into how the brand could differentiate itself and tap into untapped opportunities.
Conversion Rate Optimization (CRO) Using tools like MS Clarity, ROI Magnet identified bottlenecks in the checkout funnel. We:
Recommended third-party checkout integrations to minimize fake orders.
Suggested offers to encourage prepaid payments.
Retention Marketing Although retention in home décor isn’t typically high, the team leveraged WhatsApp Marketing to re-engage past customers. With a budget of just ₹2,500, this channel generated ₹20,000–₹30,000 in incremental revenue within the first month.
Funnel-Based Ad Strategy ROI Magnet applied a three-tier ad funnel strategy:
Top of Funnel (TOF): Allocated 70–80% of the budget to target cold audiences via interest-based targeting and lookalike audiences.
Middle of Funnel (MOF): Re-engaged users who interacted with ads or the website.
Bottom of Funnel (BOF): Focused on high-intent audiences such as users who added items to the cart, initiated checkout, or users who just viewed the product only.
Creative Testing Dynamic product ads and static creatives were prioritized for performance. The team tested hooks and hold rates extensively, improving audience retention and engagement.
Festive Campaign Optimizations During key periods like Black Friday and Christmas, minimal discounting was used to maintain brand value while achieving higher conversions.
The Results
Here’s a breakdown of the three months’ performance:
Month | Ad Spend (₹) | Revenue (₹) | ROAS | Key Insights |
October | 4,80,000 | 11,00,000 | 2.29 | Early struggles with inventory and testing campaigns. |
November | 2,43,000 | 9,31,000 | 3.82 | Improved audience targeting and reduced fake orders. |
December | 6,23,000 | 32,00,000 | 5.23 | Scaled campaigns, optimized funnels, and festive success. |
Total Revenue: ₹32 Lacs Key Growth: ROAS increased from 2.29 to 5.23, and monthly revenue grew from ₹9 Lacs to over ₹30 Lacs.
Why This Worked
Focus on TOF Ads: The majority of the budget was spent on acquiring new customers, laying the foundation for sustained growth.
Holistic Approach to Optimizations: From CRO to retention marketing, every aspect of the sales funnel was optimized.
Data-Driven Decisions: Experiments with audience segmentation (e.g., 1%, 2%, and 4% Lookalike Audiences) allowed the team to allocate resources where they performed best.
Festive Push: Timing campaigns during peak shopping periods like Black Friday gave the brand a seasonal revenue boost.
Lessons for D2C Brands
Retention Is Key: Even in categories like home décor, retention strategies (e.g., WhatsApp and email marketing) can drive incremental revenue.
Optimize Creatives: Focusing on high-quality creatives with strong hooks and engagement metrics can outperform mass production of ads.
Leverage Tools Wisely: Tools like MS Clarity and third-party apps are invaluable for resolving inefficiencies in the customer journey.
Festive Campaigns Matter: Strategic discounting and seasonal campaigns can maximize ROAS while preserving brand value.
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