Fashion & Beauty

A legacy footwear company, had established a strong presence in the industry through traditional retail channels. However, with shifting consumer preferences towards online shopping and direct-to-consumer (DTC) brands, they faced the challenge of restructuring their marketing operations to sustainably scale their DTC business and enhance customer experiences across various touchpoints.

They recognized the need to adapt to the evolving market landscape and enhance its DTC capabilities. Their primary challenges included:

1. High Customer Acquisition Costs: The client was experiencing escalating customer acquisition costs, impacting their profitability and scalability.
2. Inefficient Marketing Operations: The existing marketing operations were top-heavy and lacked the technical infrastructure and creative capabilities needed to grow. It was leading to inconsistencies and inefficiencies in customer engagement across multiple touchpoints.
3. Limited Scalability: Despite significant brand recognition across big box retailers, the company struggled to translate it into sustainable growth in the DTC segment.

Koinonia Labs collaborated closely with the footwear company to develop a comprehensive marketing strategy to address their challenges and optimize their  operations for sustainable growth. 

1. Data-Driven Insights: Leveraging advanced analytics and consumer insights, Koinonia Labs conducted a thorough analysis of the client's target audience, purchasing behaviors, and market trends to inform strategic decision-making.
2. Personalized Customer Experiences: By implementing customer segmentation strategies and personalized messaging, the footwear company was able to enhance customer engagement and drive conversion rates across various touchpoints, including website, social media, and email marketing.
3. Channel Optimization: Koinonia Labs identified priority channels for reaching and acquiring customers cost-effectively, optimizing the client's media spend and improving ROI for the D2C line of business. 
4. Operational Efficiency: Streamlining internal processes and workflows helped the footwear company improve end-to-end operational efficiency enabling them to allocate resources more effectively and respond quickly to market dynamics.
5. Technology Integration: Leveraging Listrak and other marketing automation tools and technology platforms, the client enhanced their ability to target, engage, and retain customers throughout the buyer's journey including repeat purchases.

Our collaborative effort yielded significant results, including:

1. Decrease in Customer Acquisition Cost: By optimizing marketing operations, including media buying and planning, the client achieved a notable 9% decrease in customer acquisition costs, improving overall profitability.
2. Year-on-Year Revenue Growth: By taking a more targeted and personalized approach to customer acquisition engagement, the footwear company experienced a remarkable 60% year-on-year revenue growth in its DTC segment, surpassing industry benchmarks.
3. Enhanced Customer Experiences: Through personalized messaging and improved customer experiences across owned properties, the client strengthened its brand affinity and customer loyalty, resulting in higher customer lifetime value and repeat purchases.
4. Scalability and Future Growth: The optimized marketing operations laid a solid foundation for sustainable growth, enabling the footwear company to scale its DTC business and adapt to evolving market dynamics and needs of the customer without cannibalizing its retail sales.