$3.5m CAC reduction on advertising spend
Objective
Unify all advertising and marketing data into a single analytics ecosystem to optimise campaigns.
Obstacle
Petlab’s marketing data lived in silos across multiple platforms, with no unified infrastructure or attribution model in place to guide budget allocation.
Outcome
A $3.5M reduction in annual advertising spend and a significant improvement in marketing efficiency, lifetime value (LTV), and revenue growth.
Background
Petlab is a leading direct-to-consumer pet wellness brand offering a range of health products designed to improve pets’ quality of life.
As the company grew rapidly, its marketing operations became increasingly complex — spanning multiple channels, platforms, and audiences. Yet, without a consolidated view of performance, the team struggled to accurately assess campaign effectiveness, optimise spend, or identify high-value customers.
173tech partnered with Petlab to build a modern marketing analytics infrastructure that would transform fragmented data into a single source of truth, powering smarter, more profitable growth.
Challenges
Marketing Inefficiencies: Petlab’s marketing data was scattered across Shopify, Klaviyo, and Google/Meta Ads, leaving the team with limited visibility into how campaigns were performing across channels. The absence of a unified dashboard made it difficult to optimise spend, allocate budget effectively, or identify the campaigns driving the most value.
High Acquisition Costs: Rising costs associated with acquiring new customers underscored the need for improved attribution models and more precise targeting strategies. The lack of clear attribution made it difficult to identify the most effective marketing channels, resulting in inefficient spending and lower return on investment.
Solution
Unified Data: 173tech developed a centralised analytics infrastructure for Petlab by integrating data from Shopify, Amazon, Klaviyo, Google, and Meta Ads into a unified warehouse. This provided a single source of truth for marketing performance, allowing the team to make data-driven decisions with confidence. With all key metrics consolidated, Petlab could seamlessly track customer acquisition costs (CAC), lifetime value (LTV), and overall campaign effectiveness.
Spend Optimisation: To optimise marketing spend, 173tech implemented advanced dashboards that monitored CAC, LTV, and return on investment (ROI), enabling real-time budget adjustments for maximum efficiency. Additionally, predictive retention and churn models were developed, helping Petlab identify crucial factors influencing repeat purchases and customer longevity. By leveraging these insights, Petlab strengthened customer engagement strategies and maximised subscription growth.
Impact
Customer Behaviour: 173tech built advanced retention models to segment customers by purchase behaviour and engagement patterns. This allowed Petlab to deliver highly personalised campaigns, improve retention, and increase repeat purchase rates. In-depth attribution analysis identified the true drivers of acquisition, allowing marketing teams to focus investment where it mattered most.
Campaign Predictions: Using predictive LTV modelling, Petlab could pinpoint high-value customer segments and optimise campaigns accordingly. This precision targeting not only reduced acquisition costs but also accelerated revenue growth. By operationalising these insights across their marketing stack, Petlab turned analytics into a competitive advantage.
Team Enablement: To embed long-term impact, 173tech ran tailored training sessions with Petlab’s marketing and product teams. This ensured teams could independently interpret insights, optimise campaigns, and sustain a data-driven decision-making culture.
Creating Value For Petlab...
A massive $3.5m saving on advertising,
With a CLTV rise of 23% within six months,
Helping towards a 2.9x revenue growth.
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