Acquisition is essential, but retention is the holy grail!
It is only through retention that customer LTV can be improved, which further impacts ROI in an incremental manner!
That’s exactly how Sulay Lavsi scaled the annual revenue of his D2C underwear brand ‘Bummer’ from INR 60 Lakhs to INR 12 Cr in just 2 fiscals.
Sulay launched Bummer in 2021 with an intention to make underwear mainstream, infusing cool designs and enhancing comfort. What he did not know was, with in 3 years of launch, Bummer will be thriving with:
🔷 INR 12+ Cr Revenue In FY24
🔷 INR 40+ Cr Valuation
🔷 3 L+ Active Customers
The Sandwich Campaign Method: Bummer’s 22X ROI Secret
You read that right – 22X ROI.
But there’s more – this number was achieved in just four months without any extra spending on new customer acquisition.
Top Layer: Pre-Acquisition Engagement
Engage customers at the right time.
Before a customer makes their first purchase, Bummer focuses on engaging them early in the buying journey. Here’s how they do it:
☑️ Behavioural Tracking: Bummer tracks website visitors and strategically retargets those who show high intent (e.g., repeat visits to specific product pages). They use WhatsApp and SMS to gently nudge these potential buyers toward a purchase with personalised messages and offers.
☑️ Abandoned Cart Reminders: Many D2C brands send generic cart abandonment emails, but Bummer takes it a step further by sending personalised marketing communications based on the product the customer left behind.
Middle Layer: In-Adoption Nurturing
Once a customer makes their first purchase, Bummer focuses on building trust and creating brand loyalty. Here’s how they nurture customers during this phase:
☑️ Product Usage Tips: After the purchase, customers receive communications with tips on how to get the best out of their Bummer products. Whether it’s care instructions or styling tips, this builds trust and positions the brand as customer-centric.
☑️ Community Engagement: Bummer regularly highlights customer stories on social media, creating a sense of community around their brand. This increases engagement and makes customers feel like they’re part of something bigger.
Moreover, regular buyers receive personalised offers, while those who hadn’t purchased in over three months are sent reminders of special discounts.
Bottom Layer: Create FOMO
Time-sensitive messages in the final hours of the campaign are crucial to driving FOMO, which in turn triggers impulse purchasing.
How?
☑️ Exclusive Offers: Bummer offers exclusive discounts to repeat buyers through personalised emails. These are typically sent out shortly after the first product is delivered.
☑️ Cross-Selling and Upselling: Bummer leverages purchase data to recommend related products to customers. For example, if someone buys a pair of quirky printed boxers, they might be targeted with an offer for matching socks or loungewear in the next campaign.
The result? A 60% uplift in revenue from repeat customers and 22X ROI.
The Shark Tank India Marketing Push
Bummer’s appearance in the first season of Shark Tank India gave them the visibility they needed to scale even faster. Sulay was able to secure INR 75 L from Namita Thapar and Aman Gupta in exchange for 7.5% equity.
What Shark Tank Did for Bummer 🏆
🔷 Massive Brand Exposure: Shark Tank India gave Bummer national visibility overnight.
🔷 Consumer Trust: Namita Thapar’s investment served as a vote of confidence, adding credibility to the brand. This helped Bummer win over new customers who might have been hesitant to try a relatively new D2C brand.
The Sharks Are In For Hefty Returns!
What’s Next For Bummer?
According to a Bain & Company study, increasing customer retention rates by just 5% can increase profits by 25% to 95%.
For Bummer, focusing on retention allowed them to grow exponentially without constantly having to pour money into customer acquisition.
Ask yourself this: are you focusing enough on retention, or are you still chasing acquisition at all costs?
Until the next one!
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