Case Study
Omnichannel Beauty Start-Up
How does a two-year old start-up manage the rising cost of customer acquisition while trying to maintain the growth needed to secure additional funding?
Building a Bride from a Fast Start to a Financially Sustainable Future
The Challenge
An omni-channel start-up successfully entered the beauty market two years ago. By capitalizing on emerging trends and leveraging a combination of online and offline channels, the company quickly gained market share and experienced rapid growth.
However, as the business expanded, several key challenges emerged:
The rising cost of new customer acquisitions squeezed profit margins and strained cost-saving strategies that were in place.
Increased competition from all sides became intense. Needed to differentiate.
In order to keep growing and seize new opportunities, the start-up needed additional funding to scale and attract investors.
The Solution
Compass Rose Ventures provided the following:
A Refined Customer Acquisition Strategy
Developed an on-going, data-driven methodology and approach to identify high-value customer segments and optimize marketing channels by leveraging customer insights and more personalized marketing messages.
Differentiation and Brand Building
Establish a refined brand identity and value proposition to differentiate the start-up from its competitors.
Operational Efficiency
Reviewed current staffing and 3rd party vendors and established KPIs and other measurable performance metrics.
Financial Analysis and Planning
Conducted detailed financial analysis to identify cost-saving opportunities and optimized pricing strategies.
The Impact
Customer acquisition costs were reduced by over 30%.
This helped to improve their bottom line and make them more attractive to investors. We also helped the start-up refine their operations and introduce KPI’s for measurement and reporting, and develop a more comprehensive customer retention strategy, which led to increased customer loyalty and higher customer lifetime values.