Andsons Malaysia: 2.3X D2C Revenue Growth Strategy
Financial Health and Growth Strategies: Navigating the Challenges
The cost-to-income ratio at the brand level was trending above 130, resulting in a long payback period and making the business non-investment and scale-up-friendly.
Improvements in advertising efficiency, along with the conversion of customers from one-time purchases to subscriptions, reduced the overall CIR to 44%.
Boosting ROI: Optimizing Campaigns for Efficient Growth
Spends to new user revenue ratio was trending above 310% on average.
Through campaign optimization, channel expansion, extensive creative experiments, and keyword optimization, we improved the RoAS. This growth led to a >50% reduction in the new customer cost-to-income ratio (ROI).
Challenges in Malaysia: New User Revenue Struggles
New user revenue struggled due to inefficient marketing execution in Malaysia. A high cost-to-income ratio along with poor RoAS from Facebook and Google channels (being the only performance marketing channels) made it difficult to expand the business.
Revamping Advertising Strategies: Boosting New User Acquisition
A complete revamp of advertising channel split, campaign strategy, along with the integration of Facebook conversion API and more funnel event creation helped to optimize the new user acquisition at an efficient CAC.
The new user revenue grew 2.3X with a 2.1X growth in new customers.
Driving Growth: 1.8X in Facebook Purchases, 1.5X in Google Ads, 60% Lower Cost per First-Time Purchase
Before
After
Andsons in the Malaysian market faced challenges with scale as well as high CPP*, resulting in poor marketing efficiency.
- Facebook CPP: USD 114
- Google CPP: USD 43
*CPP: Cost Per Purchase
Deploying a cold-traffic scaling system, coupled with creative optimization through rigorous experiments, and optimizing new campaign types resulted in a 1.8X growth in Facebook purchases and a 1.5X growth in Google Ads.
- Facebook CPP: USD 43
- Google CPP: USD 34
*CPP: Cost Per Purchase