Dugout Mugs had experienced a huge amount of growth during COVID, but over the past prior couple of years their sales became flat and the EBIDTA became less and less.

The root cause?

Poor overall marketing strategy and implementation.

They had used paid advertising to drive the majority of their growth, but failed to do two critical actions that led to their decline.

1. They were still deploying the same marketing strategy they used when they first opened in 2016, not keeping up with new marketing trends or best practices. In essence they stopped innovating on the marketing side, relying more and more on deep discounts to push sales. Lowering their profit margins

2. They had no idea what their numbers really were. They failed to recognize which marketing channels were driving the majority of the sales. Without deep data analysis they were making marketing decisions mostly on "gut feelings" instead of being led to profit and scalability by following the data.

HOW TO SOLVE

As with any business figuring out how to be the most efficient possible for sales and marketing are the two most important things that will determine their long term success.

Step 1:
We took a deep dive on their numbers. Looking at each marketing channel individually looking for inefficiencies and low hanging fruit for quick optimizations and wins.

Step 2:
Created a detailed plan to test new marketing tests to identify what offers and what products our customer base would respond most favorably too.

Step 3:
Prep work. This is the most overlooked and oftentimes the most impactful step. We enhanced their entire sales funnel, offering congruent cross sells and upsells to their customer base, which dramatically increased their AOV from $43 to $94. The sales funnel should not be the finish line, and for them it was.

Step 4:
To fix the CLTV issue we implemented new email/sms automations to maximize and regain as many lost sales as possible. In addition we created a robust offer campaign via the email and SMS channel that had a dramatic impact on their bottom line.

Step 5:
Add new revenue channels. We added a couple new revenue channels that were not being exploited at all. This was a huge win for them as their average ROAS on these channels were over 4X alone.

Step 6:

Next, we looked at adding fresh and new products that both their current customer base would buy, but also things we could scale into marketing campaigns.

Step 7:
Finally, we created new marketing angles for their best sellers, which added a huge boost to their revenues, especially during their slower sale months.