Industry:E-commerce, Box Subscription, Golf
Short Par 4 is the leading and largest subscription service of golf apparel and accessories in the United States. Customers can enjoy a selection of affordable subscription boxes full of name brand and premium products at often unbeatable value. As an added service, they offer other eCommerce and text platform “first” product opportunities for subscribers. They recently added media and entertainment to their mobile app to augment their customer engagement initiatives. They earn between $10-15 million in annual revenue and saw double-digit percentage growth every year for the past six years.
What We did for Shortpar4
- Marketing Audit, Opportunity Matrix
- Omni Channel Media Buying & Creative Strategy Roadmap
- Campaign Building and Optimization
- Customer Journey, Multi-Touch Customer Acquisition
- Data Science Audience Clustering
The executive team needed to accomplish two main objectives.
The first was to uplevel their marketing and advertising strategy and execution to reach their original 2020 growth goals. Their long-standing agency had helped them achieve their current growth but couldn’t support them during this new transformation. They were ill-equipped to handle the changing consumer behaviors due to COVID-19 and implement new revenue streams through rapid testing and experimentation. Short Par 4 needed a strategic, seasoned partner to help them evolve to the next level—experts who have built businesses before and can bring new ideas to life while keeping sales up and costs low.
The second challenge they needed to overcome was to increase and extend their customer data knowledge and develop technology integrations to support the new level of growth. By solving this problem, they could reduce their operational debt, automate processes, and reduce their overall compound expenses over the next 2-3 years.
The assessment we did of their channel, site analytics, and customer and channel data uncovered several significant holes:
- Their previous agency was only making Facebook/Instagram optimizations no more than once a week and less than once per month on Google AdWords. They were also only testing a handful of campaigns each quarter vs. a rapid and methodical blended test designed to grow from the results—good or bad.
- We saw large gaps in their advertising/marketing technology. The lack of critical connections and integrations meant they weren’t working together in unison. Specifically, there was little integration between their email marketing, customer data, site analytics, and media channels, which meant they weren’t speaking to one another through APIs and data feeds. There was also a void of granular pixel tracking and tagging strategy and significant gaps in their customer “data” and “purchase” funnel story.
- Due to a lack of consistent testing, their yearly cost inflation increased but could’ve been offset completely (zero sum) through a proper idea bank and testing system. Plus, ad messaging and offer efficacy wasn’t keeping up with customer demand, which led to creative burnout and reduced CTR over time, which further impacted their CPC.
- Many of the features leveraged in advertising systems were less than 50%, meaning much opportunity had been lost. This led to reductions in efficacy over time within key marketing channels, like Google and Facebook. Their previous agency wasn’t using many of the available tools within both of these platforms, which limited their chances to compete against similar and larger competitors in the golf apparel and accessory space.
- From a headroom perspective, there was rougly 35% more opportunity to convert customers at the same (Cost to Acquire) by adjusting targeting, budgeting, and bid-modification strategies, and testing ad copy and landing page variations.
With several issues to tackle, we need a multi-faceted approach:
- After conducting a deep dive into their data, we calculated the potential opportunity by weighing commercial results/sales against “level of effort” and “complexity”.
- We put together a 30/90/120-day and year one strategy war plan and complimentary tactical plan, which included media buying opportunities, channel mix, creative/content variations, and new and advanced data initiatives. For instance, by introducing them to audience clustering, we helped them “get to know” their customers from both a statistical POV and qualitative data analysis.
- We re-wrote their operations playbook to develop processes that would bind creative, production, CRM, paid media buying, ad trafficking, ad tracking, promotional activity, website purchase funnel, and transactional data together. By creating a more agile marketing and sales organization, we could get new campaigns running in days, from inception to launch, instead of weeks.
- We brought in thought leadership to help guide the client through the next growth phase, which would extend them beyond paid media buying alone as the main activity. This would end up including:
- Audience Clustering: the data science practice of identifying “who” your customer is and isn’t through machine learning and data augmentation using third party data apps.
- Conversion Rate Optimization: the mix of design and data science and testing tools to measure and impact the throughput of customer traffic through the funnel and, thus, increasing conversion rate absolute percent points.
By implementing the above, we created three things. First, scalable opportunities, which reset the efficient frontier of the business from a marketing investment to a revenue perspective. Second, we created more predictability in spend vs. sales at a palatable customer acquisition cost. This allowed Short Par 4 to secure and spend funds, knowing they’d see a predictive return. They could feel confident testing while taking calculated risks. And third, our team established recurring rapid testing and revenue stream development. By following a roadmap, both we and Short Par 4 can see what is and isn’t working while still empowering their employees to try new things.