Traditional acquisition channels have become less dependable and more costly. Brands are diversifying their acquisition efforts by testing new channels, such as influencer marketing, yet it’s hard to directly measure the impact on what matters most - profitable revenue.
&Collar, a sustainable clothing brand, announced its NIL partnership with Jaren Hall in September 2022. Expecting a surge of new customers from the ever-talented quarterback, &Collar wanted a way to easily measure whether the customers coming in from the partnership and associated campaigns were long-term, high-value customers or one-and-done shoppers.
Understanding High-Value Customers
&Collar has seen incredible growth in the last 3 years by appealing to an audience that wants comfort and style. The fact the product is sustainable is an added bonus. With such growth, &Collar used Ocurate’s predictive analytics to understand the makeup of their current audience. In seeing 20% of their customer base was responsible for a larger portion of revenue, they were able to unpack specific trends, behaviors, and interests of this core group of buyers.
In having this model, &Collar began measuring the campaigns associated with Jaren Hall on the value of leads and lifetime value of customers. &Collar can then see if high-value, long-term customers are being brought to the brand or if the promotions and giveaways capture a lower-value audience who would never build a relationship with the brand and stick around.
More of Some, Less of Others
After measuring two campaigns, a brand video and apparel giveaway, &Collar found they needed to do more of some and less of others.
* Assuming each campaign had 3,000 leads generated.
The video campaign resulted in 34% more high-value leads than the standard audience which accounted for $306K in predicted revenue over the next 6 months (revenue on the table to capture). In measuring transactions, the video campaign drove high-value customers to place 45% more orders than the standard audience and the average order value was 22% higher ($62/order).
The giveaway campaign had less engagement overall and also engaged fewer high-value customers resulting in 12% more high-value leads, which only accounted for ~$51k in predicted revenue over the next 6 months.
In analyzing the content, &Collar discovered people loved interacting with the video and identifying with the quality person that Jaren Hall is. The giveaway was found to bring in plenty of tire kicker purchasers who were looking to get a quick win of a product vs. caring about the association with Jaren. These individuals had no intention of purchasing again.