How We Scaled Luno Life to $500K/Month at 9x ROAS While Reducing CAC and Boosting AOV
The Challenge
Luno Life aimed to:
Increase Revenue: Boost monthly revenue beyond the $200K plateau.
Improve Profitability: Achieve a higher Return on Ad Spend (ROAS) while reducing Customer Acquisition Cost (CAC).
Expand Market Reach: Educate and attract audiences unfamiliar with car camping.
Enhance User Experience: Optimize landing pages and the Shopify platform to improve conversion rates.
Our Strategy
To address these objectives, we implemented a comprehensive strategy:
- Key Metric Alignment:
Focused on essential business metrics:
MER (Marketing Efficiency Ratio): Assessed marketing spend effectiveness.
CAC (Customer Acquisition Cost): Analyzed and aimed to reduce costs of acquiring new customers.
NCAC (New Customer Acquisition Cost): Targeted reduction in expenses for attracting new customers.
LTV (Lifetime Value): Evaluated long-term revenue potential per customer.
AOV (Average Order Value): Strategized to increase average customer spend.
CVR (Conversion Rate): Enhanced the rate of website visitors converting to customers.
- Facebook Creatives Optimization:
Developed engaging content to appeal to a broader audience, including those new to car camping.
- Landing Page Optimization:
Redesigned landing pages to be informative, visually appealing, and user-friendly, catering to new audience segments.
- Google Ads Enhancement:
Optimized campaigns by targeting relevant keywords and refining ad copies to attract potential customers seeking outdoor gear.
- Shopify Platform Enhancement:
Improved the user interface to provide a seamless e-commerce experience, facilitating easier navigation and purchase processes.
The Results
Our strategic initiatives led to significant improvements:
Revenue Growth:
Achieved $500K in monthly revenue by July 2024.
Return on Ad Spend (ROAS):
Increased to 9x, indicating highly efficient ad spend.
Order Volume:
116% increase in orders, reflecting successful market expansion.
Average Order Value (AOV):
21% increase, demonstrating effective upselling and cross-selling strategies.
Overall Revenue:
124% increase, surpassing initial growth targets.
Client Testimonial
“Rozee Digital helped us scale to over $1million/month, increase ad spend, new customer revenue while decreasing CPAs! If you are looking to grow, speak to Tom.”
Alp n Rock
CEO