Luxuread is a Monthly subscription book box with a small artisanal surprise goodie (bath salts, dark chocolate, cocoa powder etc.). Their USP is making book reading a fun experience wherein the incoming books are always a surprise (in line with the user choice of genre, though) and comes in along with the goodies.
The idea is to have people prioritize “ME” time for themselves.
The brand had 2 problems that they were looking to overcome:
LuxuRead was facing a challenge of having a relatively low number of subscribers to their monthly book box service. This means that they were not attracting as many customers to commit to their subscription model as they desired. The low subscription numbers were a concern because it directly affected their revenue and growth potential. To address this issue, the company needed to find strategies and solutions to attract more customers to subscribe to their service, thus increasing their subscriber base.
Customer Lifetime Value (CLTV) is a crucial metric for any subscription-based business. It represents the total value a customer brings to the business over the duration of their engagement with the brand. In the case of LuxuRead, their CLTV was lower than desired. This indicates that, on average, customers were not staying subscribed for an extended period, or they were not making as many repeat purchases, which affects the overall profitability of the business. To improve their financial health and long-term sustainability, LuxuRead needed to find ways to increase the CLTV of their customers. This might involve strategies such as encouraging longer subscriptions, upselling or cross-selling additional products, or increasing customer loyalty.
Conducting an Audit followed by Recommendations
We audited their ad account performance and previous monthly sales to identify opportunities and found the gap in performance. Based on this we prepared the client with new strategies and a funnel setup to improve their LTV by recommending best offers, and working with their creative strategy and retargeting campaign optimization, in order to help improve conversion rate and LTV, ultimately for a greater ROI.
LuxuRead experienced a fivefold increase in Monthly Recurring Revenue (MRR) within three months, indicating substantial growth in their predictable, recurring income.
LuxuRead's quarterly revenue surged by an extraordinary 323% from Q2 to Q3 in 2020, demonstrating their ability to attract new subscribers and increase the value derived from existing customers during that period.
The company successfully generated 1,270 new subscriptions, and their Return on Advertising Spend (ROAS) of 3.13 showed that their marketing efforts were not only effective but also provided a positive return on investment.
These are clear indicators of how TealBox's approach to retargeting advertising campaigns and using funnel strategies has not only boosted LuxuRead’s subscription numbers but also increased the overall customer lifetime value for the business by bolstering repeat purchases and re-engaging old customers. Through this achievement the company was able to have their quarterly revenue more than triple, leading to extraordinary growth.
If your business can relate to the success story of LuxuRead and you're looking to achieve similar results through remarketing and advertising strategies, don't hesitate to contact Tealbox. We have the expertise and experience to help you grow your brand and boost your sales. Reach out to us today to discuss your specific needs and goals. Let's work together to take your business to the next level!
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