Tag: Digital Marketing

CASE STUDY: Digital Marketing for Contemporary Designer Loungewear Brand

THE BRAND

A contemporary loungewear brand based overseas with a minimalistic design sense looking to build its audience in the North American market.

CHALLENGES

The brand has a high quality product and an established manufacturing infrastructure, but is struggling to bring in consistent sales and has a limited budget due to the brand having limited cash flow and not having yet reached profitability.

STRATEGIES

  1. Determine target audience that is most profitable for the brand to build a responsive system that increases sales without increasing ad spend.
  2. Calculate target CPA to determine best way to structure ad strategy to make system profitable and optimize ROI for the brand.
  3. Test creatives to determine best way to connect with target audience and increase engagement rate on ads to further optimize the overall efficiency of the ad system.
  4. Begin increasing budget on specific ad sets that are meeting strategic metrics to further increase ROI by prioritizing converting campaigns.
  5. Build brand awareness not only through the ad system, but by coordinating with the brand’s social media and email marketing teams, increase return customer rate and increase overall brand ROI on all marketing and PR efforts.
  6. Product new ad-specific content based on the feedback data from the first 3 to 6 months of ads content to create high-converting content that will better assist with helping the brand reach it’s overall marketing goals.

RESULTS [6 months]

  • 333% increase in gross sales
  • 343% increase in total sales
  • 92% increase in website traffic
  • 70% increase in website visitor conversion rate
  • 42% increase in AOV (average order value)

RESULTS [15 months]

  • 58% increase in gross sales
  • 37% increase in total sales
  • 30% increase in website traffic
  • 17% increase in AOV (average order value)
  • 27% increase in returning customer rate

SUMMARY

Thanks to Pink Sheep Publicity’s proprietary digital marketing strategies, we were able to significantly increase sales, revenue, and cash flow for the brand on a relatively small ads budget.

Thanks to quick, meaningful growth through the first sixth months of working together, the brand was able to grow from a “start up” to a viable retailer with an established and steady revenue stream. Thanks to more than a year of consistent growth, wherein ROI (return on investment) and ROAs (return on ad spend) continued to increase and CPA (cost per acquisition) continued to decrease, the brand continued to see steady revenue growth month over month and has been able to grow into additional market sectors, including childrenswear, as their business has grown.

PSA: Digital Marketing Isn’t the Same as Sales

One of the greatest frustrations we often hear from fashion brand owners is that their ads are not providing the ROI they would like to see. Many new brand owners assume that pumping money steadily into a generic marketing funnel through a platform like Meta will instantly provide a significant ROI before the brand has made even one sale organically.
 
While the dynamics of digital marketing and sales are intertwined, the terms are not interchangeable. Despite their interdependence, it’s crucial to recognize the nuances that differentiate digital marketing and sales. When these two essential components of business growth work together in a comprehensive strategy that accounts for the unique objectives and goals of each, fashion brands can flourish into successful businesses.
 
Digital Marketing is integral to brand growth and success, but at its core, is an amplification system and not a sales generator. By using the data that is already in your system (for example, customer data in Shopify from your existing customer base) an effective campaign will find more potential customers who resemble your existing customer base. While an optimized digital marketing strategy can lead a brand to grow from $1,000 per month in revenue to $150,000 in revenue per month in a relatively short time (we’ve not only seen it, but we’ve done this for multiple fashion brands), there must be data available to use as a starting point for that scaling to begin.
 
While Digital Marketing is about amplifying what’s already working, the focal point of a sales strategy revolves around converting prospects into paying customers. Through strategic engagement and persuasive techniques, the sales team’s aim should be to generate tangible revenue. Sales is a more tactical approach tailored to the final stages of the consumer journey, emphasizing transactional outcomes.
 
While digital marketing undoubtedly plays a pivotal role in amplifying brand visibility and driving consumer engagement, it’s essential to acknowledge its limitations as a standalone sales creator. Simply put, the goal of sales strategy is to convert prospects into customers and the goal of a digital marketing strategy should be to reach new potential consumers that can be converted into customers.
 
So, if digital marketing increases sales and makes selling easier, how does a new fashion brand make sales to begin with? For a fashion brand to make sales, it’s crucial to implement a comprehensive strategy that includes organic, earned, and paid tactics, such as public relations, paid media placements, affiliate marketing, product placement, community engagement, social media marketing, and live events.
 
By aligning the complementary roles of digital marketing efforts with sales objectives in a comprehensive brand strategy, fashion brands can not only drive revenue and foster sustainable growth but also cultivate meaningful connections with consumers, amplify brand resonance, and propel themselves towards enduring success in the increasingly competitive fashion industry.

There’s no one “thing” that a new brand can do to magically reach profitability. When the complementary roles of digital marketing and sales are integrated into a comprehensive brand strategy that includes paid and organic tactics, their collective powers can drive revenue and foster sustainable growth for fashion brands of every size.