Sparkle In Pink

Services Provided:

Paid Social, Email, CVO

Sparkle in Pink is a family-owned business located in Utah. They provide a vast selection of children’s clothing and costumes at affordable prices. Sparkle In Pink was founded in October 2011, and it soon became a team of 70+ employees shipping out thousands of orders daily. They are a global online retailer, shipping their products internationally.

The Challenge

While Sparkle in Pink was acquiring a lot of new customers and they were converting well, the majority of them weren’t coming back for a second purchase. This was problematic for them because their acquisition costs were high, relative to their average Customer Lifetime Value (CLV). While they weren’t losing money on the customers they acquired, they weren’t nearly as profitable as they could be if they were acquiring customers that came back to make repeat purchases.

Our Approach

We identified that in order to improve their overall gross margin, we needed to increase their CLV. For their situation, the most effective approach was to optimize Purchase Frequency and to acquire the right customers that would bring more value to the brand in the long term. If we could improve customer loyalty and retention by increasing the number of times their average customer buys from them, we would sequentially improve their CLV.

The first step to achieving this was to perform an RFM analysis and segment their customer base. Our main segments were our highest-value customers, customers who were on the verge of leaving, and customers who used to be valuable but have not purchased in a long time. With these segments in place, we were able to create email flows and email campaigns with a specific strategy tailored to each type of customer.

We also made it a priority to improve the customer experience by optimizing their journey. This involved tracking post-purchase NPS scores, post-delivery scores, and post-support scores. This allowed us to track their experience right after every interaction with their brand to identify opportunities for improvement.

Next, we began working on their acquisition strategy. We were able to create Meta lookalike audiences based customer data within our RFM segments. But first, we took a deep dive into customer research by interviewing their highest valued customers to understand them on a deep level. Using this information, we crafted an ideal customer profile and made note of what key messages would have an impact in acquisition campaigns. This allowed us to target consumers who have similarities with our high CLV customers with messaging that converts much better than typical cold prospecting.

The Results

After implementing our approach to identify and fix friction points in the customer journey, sending personalized emails to every type of customer based on RFM segments, and receiving great collaborative support from the Sparkle in Pink team, we were able to increase Customer Lifetime Value by 18% within the first 6 months. As a result of our customer research and efficient audience targeting, we were able to acquire higher value customers and achieve a 61.4% increase in ROAS.
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As of July 1, 2023

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