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The Problem
2391% Growth in 2.5 years. A Mushroom's Journey!
Who is DIRTEA? A Functional mushroom brand that focuses on improving the health and well-being of its customers via its mushroom products. Now selling in the USA, UK & GCC markets.
What We Do For DIRTEA?
Growth Service & Strategy & Proud Investors with the brand for over 2 years.
With DIRTEA we required a full hands on deck approach. After over 12 months of doing their paid advertising, we stepped in as growth partners for the brand and tool over the entire DTC experience of the business. Taking into account: Forecasting, Paid Ads, Retention, Merchandising Strategy, Email & SMS, Content & Creative.
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Our Solution
The CHALLENGE
Addressing High CPA Challenges for DIRTEA
When DIRTEA approached us in July 2021, they were grappling with incredibly high customer acquisition costs (CPA) on Meta and Google ads, which severely impacted their profitability. The brand was inefficiently spending on customer acquisition, relying on customer lifetime value (LTV) to eventually turn a profit. Andy and Simon from DIRTEA sought our expertise to find a sustainable solution.
We leveraged DIRTEA's strong product LTV, introduced a new creative strategy, and restructured their paid advertising setup, leading to unparalleled growth.
Core Issues Identified:
The unit economics for first-order profits were not viable.
The creative content for ads was significantly below industry standards.
There was a lack of understanding of negative cash-flow conversion cycles, which could leverage more scale based on their high customer LTV.
Ineffective ad targeting, structure, and optimization resulted in poor ad performance and return on ad spend (ROAS).
By addressing these issues, we optimized their ad campaigns, improved profitability, and drove substantial growth.
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The Results
The Solution & Results
Strategic Growth and Optimization for DIRTEA
We prioritized growth based on DIRTEA's unit economics and customer lifetime value (LTV), developing a merchandising strategy that focused on promoting the most profitable products first for 2022.
Our efforts resulted in significant improvements:
Increased ROAS: By enhancing creative performance and optimizing paid acquisition, we boosted the return on ad spend (ROAS) to over 3X.
Subscription Growth: Our strategic approach led to an impressive 2569% increase in subscriptions over the past two years.
These results demonstrate the effectiveness of our proven methods in driving growth and profitability for DIRTEA.
3X+ ROAS
£10M+ in Sales Generated
41% Lower CPA
