In this case study, we will discuss the importance of utilizing key metrics like Return on Advertising Spend (RoAS) and LifeTime Value (LTV) to develop a successful, data-driven scaling plan.
We will examine a UK-based protein water brand as an example to demonstrate the impact of these metrics on growth and scaling opportunities.
The brand is a startup that has doubled in size each year since its inception in 2019. We started a collaboration with them in late 2022, in order to help them grow with paid advertising and marketing strategy.
Given the tight profit margins of the products (around 50% gross margins on a £25 AOV) the challenge was to create a scaling plan based on RoAS and LTV that would help the business grow further without leaving revenue on the table.
By focusing on LTV and MER, we were able to create a data-driven approach to scaling the protein water brand. This approach allowed for more room to scale and increase volumes without being limited by the first-time RoAS.