$3.5m CAC Reduction On Advertising Spend.
Objective
Centralise all advertising and marketing data and improve campaigns.
Obstacle
Nothing was set up and a lot of different channels needed to be centralised.
Outcome
$3.5m CAC Reduction On Advertising Spend.
Background
Petlab is a leading direct-to-consumer pet wellness company offering a range of health products for pets. As Petlab scaled rapidly, the team needed to refine their marketing strategy and maximise advertising returns. However, siloed data and limited insights hindered their ability to optimise campaigns and understand customer behaviour comprehensively.
Challenges
Marketing Inefficiencies: The absence of a unified dashboard to integrate data from platforms such as Shopify, Klaviyo, and Google/Meta Ads hindered the team’s ability to gain a comprehensive understanding of ad performance. Without a consolidated view, optimising campaigns for maximum effectiveness became challenging, leading to missed opportunities and inefficient resource allocation.
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.
The Proof Is In The Numbers...
2.9x
23%
$3.5m
Implementation
Campaign Predictions: 173tech developed LTV prediction models to help Petlab identify high-value customer segments, allowing for more precise campaign targeting and maximising long-term ROI. By leveraging these predictive insights, Petlab could focus marketing efforts on customers with the highest potential lifetime value, improving acquisition efficiency and revenue growth. To ensure the team could fully utilise these advanced analytics, 173tech conducted comprehensive training sessions for Petlab’s marketing and product teams. These sessions enabled them to seamlessly integrate the new dashboards into their decision-making processes, fostering a data-driven culture and empowering them to make strategic decisions.
