DECILE Customer Case Study
Tata Harper reduces monthly ad spend and product costs, and increases repurchase rate with Decile.
OVERVIEW
Green beauty brand uncovers how gift with purchase offers affect buying habits.
Beauty / Skincare
Decile's CAC, LTV and Payback report, along with Comparative Analytics
Understanding whether gifts with purchase impact LTV
Understanding gift with purchase customers helped reduce product costs, lower ad spend, and increase repurchase rate
REPURCHASE RATE COMPARED TO NO GIFT WITH PURCHASE
↓ MINIATURE PRODUCTS COSTS
↓ Monthly Advertising Spend
Business Question
The team was looking to understand whether gifts with purchase were effective in building a strong, loyal customer base.
They were looking to answer the question: Should general discounts on the first purchase be considered to replace the gift with purchase offer?
The Solution
- Gift with Purchase Impact on LTV
Utilizing Decile, they discovered that customers who were acquired with a gift with purchase had an LTV which was 78% higher than customers who were acquired without it.
- Type of Gift with Purchase Analysis
The type of gift with purchase (product/product category) did not have significant impact on overall LTV.
The Results
67% Higher Repurchase Rate
compared to customers who didn't use a gift with purchase, when looking at a six month post-acquisition window.
DECREASE IN MINIATURE PRODUCTS COSTS
The business stopped changing the gift with purchase on a monthly basis, instead focusing on one gift per purchase per season.
Reduced Ad Spend
Monthly advertising spend was reduced as a result of improved targeting.