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Thenmozhi

How we scaled a Apparel Brand from 18 Lakh to 60 Lakh revenue in 3 months

About the

Brand

Thenmozhi Designs offers a curated collection of handloom cotton sarees and salwar sets, celebrating the vibrant colors and intricate craftsmanship of Indian textiles.

Challenges

Zero Paid Revenue

They haven't run any ads before, so all the revenue they have, was generated organically.

Zero Learning in the Ad Account

They never ran any ads, there is no learning in the ad accounts. We had to start everything from scratch.

Absence of New Customer Acquisition Strategy

Without a clear plan to attract and convert new customers, the brand struggled to expand its customer base and maximize growth opportunities.

Lack of Product Level Insights

As this is a heavy catalogue brand, we need to track the performance of each category, but the product was not togged properly

Revenue depending upon returning customers

The brand has a huge follower base, and maximum revenue depends upon returning customer

Maintaining AOV

As this is a heavy catalogue brand, AOV fluctuated most of the time. There was no consistency in AOV

Solution & Implementation

Account Structure

Selecting the right product categry

Leveraging huge engagement in creatives

Product category Performance Management

New vs Repeat Customers Growth Tactics

1. Simplified Account Structure

  • Segregated the campaigns category-wise to understand the performance of each category

  • MOF Campaign to leverage huge follower base
  • Retargeting campaigns for ATC/IC audience and customer base

Creative Testing

One ad set with one ad in winning audience.

Audience Testing

Tested Multiple interest in category-based campaign with DPA

DABA Catalogue Ads

Category-wise Catalogue objective ads

MOF

Separate MOF campaign to leverage follower base.

Catalogue Ads Retargeting

Separate catalogue objective campaign with retargeting audience

2. Product Performance Management

  • Audited the account to determine the spend-to-revenue ratio and identified the top 3 best-selling product category.

  • Further analyzed the product cohort to identify 3 hero product categories with nCAC lower than account average and higher CLTV and M2/MO repeat rate.
  • Broke down the overall brand’s ROI targets into product- wise ROI targets based on nCAC & Gross Margins for each product.
  • Lower AOV product for acquisition and higher AOV product to maintain the ROI and a certain AOV.

3. New Customer vs Returning Customer Growth & Otimisation

  • Audited the account to find out their MOM new customer vs returning customer growth

  • As they didn’t run any ads before, after running ads, Meta started bringing existing customers along with new customers
  • To understand category-wise new customer acquisition and accurate nCAC, we’ve implemented custom CAPI
  • As they haven’t run any ads and have a huge organic customer base, we’ve started optimising based on 7-day click
  • We’ve started optimising based on Product Category nCAC

Results:

ADB way of tracking New Customer growth

  • Audited the account to determine the spend-to-revenue ratio and identified the top 3 best-selling product category.

  • Further analyzed the product cohort to identify 3 hero product categories with nCAC lower than account average and higher CLTV and M2/MO repeat rate.
  • Broke down the overall brand’s ROI targets into product- wise ROI targets based on nCAC & Gross Margins for each product.
  • Lower AOV product for acquisition and higher AOV product to maintain the ROI and a certain AOV.

ADB way of Creative Reporting

We found out what themes and iterations of creatives work rather than spending a lot of time and money on new creative research and doing the guesswork.

The Results

Revenue increased to 3.5x within 3 months.

Product Category-wise strategy and offer testing helped increase new customer acquisition by 3x.

Outcomes

In a nutshell, scaling becomes easy when you have a great product, Proper reporting, UGCs with a clear product strategy in a simplified ad account.

+200%

Increase in Monthly Revenue

+250%

Increase in new customer