The Challenge
Spending $120K/month on Meta Ads with declining ROAS and no visibility into which customers were actually profitable.
Key Highlights
Implemented LTV-based bidding that shifted spend to high-value customer lookalikes
Built automated retention flows that increased repeat purchase rate from 18% to 34%
Unified attribution revealed 40% of Google spend was cannibalizing organic — reallocated to Meta prospecting
Background
LuxSkin Co. is a premium DTC skincare brand selling directly through Shopify. With a product line averaging $65 AOV and strong brand equity, they had built a loyal following — but their paid acquisition was hemorrhaging cash.
Their Meta Ads account had grown organically over 3 years without strategic oversight. Multiple agencies had layered campaigns on top of each other, creating audience overlap, bid competition, and no clear picture of true customer profitability.
Our Approach
Phase 1: Data Foundation (Week 1–2)
We connected their Shopify, Meta Ads, Google Ads, and Klaviyo data into Finsi’s unified analytics platform. Within 48 hours, we had a complete picture of their unit economics, cohort retention curves, and channel-level contribution margins.
The data revealed a critical insight: their Google Ads ROAS looked strong at 3.2x, but 40% of that revenue was from customers who would have purchased organically. True incremental ROAS was closer to 1.4x.
Phase 2: LTV-Based Bidding (Week 3–6)
We rebuilt their Meta Ads account from scratch using LTV-based bidding strategies:
- Created high-value customer lookalikes based on predicted 12-month LTV (not just first-purchase value)
- Implemented automated bid rules that adjusted spend based on real-time cohort performance
- Consolidated from 47 ad sets to 12 highly targeted campaigns
Phase 3: Retention Engine (Week 4–8)
Simultaneously, we deployed a full retention stack:
- 8-email welcome series with dynamic product recommendations
- Post-purchase nurture flows based on product category
- Automated reorder reminders timed to average repurchase intervals
- VIP program for top-decile customers with exclusive access and early launches
Results
Within 90 days, LuxSkin saw a complete transformation in their unit economics. ROAS climbed from 1.8x to 4.12x, repeat purchase rate jumped from 18% to 34%, and customer acquisition cost dropped by 52% through more efficient targeting.
The combination of smarter acquisition and stronger retention created a compound growth effect — each new customer was worth more, and each ad dollar was better spent.
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