[Premium Beauty & Wellness Case Study] How We Increased New Customers 73% & Sales 57% in Q1 2025!

Summary

Perpetual Traffic Podcast Summary

Episode: [Premium Beauty & Wellness Case Study] How We Increased New Customers 73% & Sales 57% in Q1 2025!
Release Date: April 11, 2025
Hosts: Ralph Burns (Founder & CEO of Tier 11) & Lauren E. Petrullo

Introduction to the Case Study

In this episode, Ralph Burns delves into a comprehensive case study focused on a long-standing client in the beauty and wellness sector. Despite Lauren Petrullo’s absence due to travel, Ralph provides an in-depth analysis of the strategies implemented that led to significant growth in both new customers and sales.

Key Results Achieved

Sales Growth: The client saw a 57% increase in total sales year-over-year as of March 2025.
- Ralph Burns [15:30]: "Their business increased 57% year over year with a new customer count increasing by 73%."
New Customer Acquisition: There was a 73% rise in new customers over the trailing 12 months.
- Ralph Burns [10:45]: "A 73% increase in new customer acquisition is a testament to the effectiveness of our strategies."
Media Efficiency Ratio (MER):
- Overall MER: 5.1
- New Customer MER (NMER): 2.4
- Ralph Burns [25:10]: "With an MER of 5.1 and an NMER of 2.4, we ensured that the client's marketing spend was highly efficient."
New Average Order Value (NAOV): Achieved a 22% increase in NAOV over the past 12 months.
- Ralph Burns [30:20]: "A 22% increase in NAOV allowed us to afford higher customer acquisition costs, further fueling growth."

Strategic Framework: The Conversion Engine

Ralph introduces Tier 11’s proprietary framework, the Conversion Engine, which comprises four key components aimed at optimizing online business growth.

1. Creative

Long-Form Content: Emphasizing educational and tutorial-based videos over short-form content.
- Ralph Burns [12:00]: "We prioritize long-form videos because they effectively demonstrate expertise and engage the audience deeply."
Content Rotation: Regularly introducing new creative materials to keep the audience engaged and testing them methodically.
Transformation Focus: Instead of selling products directly, the strategy centers on selling the transformation the products provide.
- Ralph Burns [20:15]: "We sell the transformation—what the customer becomes—not just the product itself."

2. Traffic Management

Platform Utilization: Primarily leveraging Meta (Facebook and Instagram) and Google, with emerging efforts on YouTube.
Manual Campaign Management: Turning off Meta’s Advantage Plus Creative Enhancements to maintain brand control across all formats.
- Ralph Burns [28:50]: "By managing campaigns manually, we ensure that each creative maintains brand consistency across all platforms."
Custom Audience Retargeting: Implementing Level Two custom audiences to re-engage users who have interacted with the brand but haven't converted yet.
- Ralph Burns [22:30]: "Level two retargeting allows us to nurture warm leads effectively, guiding them down the customer journey."

3. After the Click Optimization

Conversion-Optimized Landing Pages: Creating landing pages that mirror the video content and showcase all relevant products with detailed descriptions and testimonials.
- Ralph Burns [35:00]: "Our landing pages are meticulously designed to reinforce the message from the ads and encourage higher conversions."
Incentivized Offers: Implementing strategies like "Buy three, get 20% off" to increase average order value and encourage bulk purchases.
- Ralph Burns [40:10]: "Offers like buy three products and get 20% off not only increase AOV but also enhance customer satisfaction."
Transitional Call to Actions (CTAs): Providing secondary CTAs, such as lead magnets, to engage users who aren't ready to purchase immediately.
- Ralph Burns [45:25]: "Transitional CTAs help capture leads who may convert later, expanding our engagement funnel."

4. Data-Driven Decision Making

Metric Focus: Prioritizing MER and NMER over traditional ROAS to better assess marketing effectiveness.
- Ralph Burns [25:50]: "MER and NMER provide a more accurate picture of our marketing efficiency compared to standard ROAS metrics."
Continuous Optimization: Regularly analyzing performance data to refine and enhance strategies, ensuring sustained growth.

Detailed Tactics and Implementation

Creative Strategy

Educational Content: Producing long-form tutorial videos that demonstrate product usage and the resulting transformation.
- Ralph Burns [18:00]: "Our tutorial videos are designed to educate and engage, setting the stage for effective product placement."
Live Sessions: Hosting Facebook Live sessions, such as live makeup tutorials, to interact with the audience in real-time.
- Ralph Burns [19:40]: "Live sessions create a dynamic and interactive experience, fostering a deeper connection with potential customers."

Traffic Management

Advantage Plus Shopping Campaigns: Utilizing Meta’s advanced shopping features while maintaining manual control over creative displays to ensure brand consistency.
Retargeting Strategies: Deploying Level Two retargeting to re-engage users based on their interaction levels, such as video views or website visits.
Organic Insights: Leveraging successful organic content to inform paid strategies, ensuring that paid campaigns resonate with the audience.
- Ralph Burns [26:15]: "Analyzing what works organically allows us to replicate success in our paid campaigns, maximizing engagement."

After the Click Optimization

Enhanced Landing Pages: Designing landing pages that not only display products but also include educational content, testimonials, and additional product recommendations.
Lead Generation: Implementing lead gen campaigns with incentives like beauty secrets in exchange for email addresses, building a robust engagement list.
Dynamic Product Ads (DPA): Utilizing DPA on Meta to retarget visitors with the exact products they showed interest in, increasing the likelihood of conversions.
Email and SMS Marketing: Following up with leads through targeted email and SMS campaigns to nurture relationships and encourage repeat purchases.

Insights and Lessons Learned

Educational Over Sales-Driven Content: Shifting focus from direct sales pitches to educational content enhances customer trust and engagement.
- Ralph Burns [33:00]: "Educate and inform your audience first; selling becomes a natural outcome of building trust."
Comprehensive Metrics: Utilizing MER and NMER provides a clearer understanding of marketing efficiency, enabling better resource allocation.
Continuous Creative Testing: Regularly introducing and testing new creative content prevents audience fatigue and keeps engagement high.
Strategic Retargeting: Effective retargeting strategies, especially Level Two audiences, significantly contribute to increasing conversion rates.

Conclusion

Ralph Burns concludes that the success of the beauty and wellness client stems from a well-rounded, data-driven approach encapsulated in the Conversion Engine framework. By focusing on long-form educational content, meticulous traffic management, and optimizing post-click experiences, Tier 11 was able to deliver impressive growth in both new customer acquisition and overall sales. The strategies outlined in this case study serve as a valuable blueprint for other businesses in the beauty and wellness space aiming to achieve similar results.

For more detailed insights and to watch the accompanying visual elements, listeners are encouraged to visit the Perpetual Traffic YouTube channel.

Sources & References:

Podcast Transcript: Provided by Perpetual Traffic podcast
Tier 11 Resources: perpetualtraffic.com
Books Mentioned: StoryBrand by Donald Miller