How We Helped a $4.2M Skincare Brand Cut

The Challenge: High CAC, Low Retention

What They Do

Radiant Skin Co. sells premium, science-backed skincare products targeting health-conscious women aged 28-45. Their hero product (a vitamin C serum) retails for $68 and has a cult following on social media.

The Problem

Despite strong social proof and decent Meta ads performance, Radiant Skin was stuck in a high-acquisition, low-retention loop:

What We Discovered in Week 1

• Generic lookalike audiences: They were targeting "all customers" instead of segmenting by LTV
• One-size-fits-all creative: Same ads for first-time buyers and loyal customers
• No post-purchase automation: 82% of customers never received a replenishment reminder
• Leaky retention bucket: $127k in potential repeat revenue was being left on the table every year

Our 3-Part Playbook

Strategy #1: Behavioral Cohorts from Shopify Data

The Problem: Radiant Skin was running lookalike audiences based on "all customers"—which included $78 one-time buyers and $400+ loyal customers. This diluted their targeting.

What We Did:

• Pulled 18 months of Shopify customer data and segmented by LTV:
  • Tier 1 (Top 20%): Customers who spent $250+ (3+ purchases)
  • Tier 2 (Middle 40%): Customers who spent $120-$249 (2 purchases)
  • Tier 3 (Bottom 40%): One-time buyers ($78 average)
• Built separate Meta lookalike audiences for each tier
• Allocated 60% of budget to "Tier 1 lookalikes" (highest LTV potential)

Strategy #2: 3-Tier Creative Testing Framework

The Problem: All ads used the same messaging ("Clinically proven vitamin C serum"). This didn't resonate differently with new vs. loyal customers.

What We Did:

• Tier 1 Ads (Cold Prospects): Problem-awareness messaging
  • Example: "Why your current vitamin C serum isn't working (and what to use instead)"
  • Focus: Education + social proof
• Tier 2 Ads (Warm Leads): Product benefits + urgency
  • Example: "Get glowing skin in 14 days—backed by clinical trials"
  • Focus: Results + testimonials
• Tier 3 Ads (Existing Customers): Retention + upsell
  • Example: "Running low? Reorder now + get our new night cream at 20% off"
  • Focus: Convenience + bundles

Strategy #3: Post-Purchase Retention Loops

The Problem: 82% of customers never bought a second time—mostly because they forgot or ran out of product.

What We Did:

• Built automated email sequences triggered by purchase date:
  • Day 30: "How's your skin looking? Here's how to get the most from your serum"
  • Day 45: "Running low? Most customers reorder around now" (+ 15% discount)
  • Day 60: "Don't let your skin progress slip—reorder today"
• Launched Meta retargeting for customers who hadn't repurchased after 50 days
• Created bundle offers ("Serum + Moisturizer = Save $22") to increase AOV

The Results: CAC Down 27%, Retention Up 18%

Metric	Before OFFSAGE	After 90 Days	Change
CAC (Customer Acquisition Cost)	$87	$51	-41%
Trial-to-Paid Conversion	18%	22%	+22%
Repeat Purchase Rate	18%	36%	+100%
Customer LTV	$142	$217	+53%
Avg. Purchases per Customer	1.82	2.78	+53%
Monthly Revenue (from ads)	$87,000	$142,000	+63%

Key Takeaways for DTC Brands

• Segment your lookalikes by LTV: Don't lump $78 buyers with $400+ customers—they're different audiences
• Match creative to customer journey stage: Cold prospects need education. Warm leads need urgency. Existing customers need convenience.
• Fix retention before scaling acquisition: Getting more customers doesn't help if 82% never buy again
• Automate your win-back campaigns: Most brands leave 15-20% of revenue on the table by not reminding customers to reorder

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