Key Results
Subscription Growth
380% increase over 3 years (from ~360 to over 1,700 subscriptions)
Revenue Transformation:
Off-season monthly sales increased 276%.
Peak season sales increased 6x!
TACoS Reduction
TACoS reduced from 18% to 9% (50% improvement, well below the category average of 15-20%)
ACoS Improvement
ACoS reduced from 51% to 39% while increasing sales
The Challenge
This premium CPG brand was struggling to grow due to operational inefficiencies and underperforming advertising efforts.
When they approached us, we discovered barcode errors that were triggering costly fulfillment fees on every unit sold.
Despite strong customer loyalty and frequent repeat purchases, their subscription rate remained surprisingly low.
Compounding the issue was their highly competitive market, dominated by established players with deep advertising budgets.
Why They Turned to Rio Roo
This CPG company needed a partner with substantial years of experience in creating and executing strategies for growing brands on Amazon.
Our team delivered results through a clever combination of data-driven analysis, deep platform knowledge, and active listening skills.
The Strategy
Our multi-faceted approach addressed immediate operational problems while building a foundation for sustainable, profitable growth.
We began by solving the critical backend issues that were eroding margins and preventing the business from scaling. This included eliminating the costly labeling errors that led to additional fees and resolving the customer confusion that was causing frequent product removals.
To drive growth, we implemented a comprehensive strategy that included a strategic product portfolio expansion. We introduced new trial sizes to create a low-risk entry point and build an acquisition funnel. We then coupled this with a psychology-based pricing model, a tiered subscription system that used graduated discounts to incentivize larger, more profitable orders.
Finally, we built integrated advertising campaigns that moved customers from initial trial to long-term subscription, all while optimizing for customer lifetime value rather than single-transaction profitability.
Execution: From Strategy To Results
- Built a Tiered Subscription Model
- Resolved Barcode, Inventory and Logistics Issues that Eroded Margins
- Created More Effective Advertising Funnels
- Implemented a Strategic Product Portfolio Expansion
- Employed a Psychology-Based Pricing Strategy
- Optimized Systems for Customer Lifetime Value
Truth Or Dare?
The Truth:
- We have over a decade of deep Amazon expertise.
- We partner with clients in 9 countries, across diverse sectors — from emerging to heritage brands.
- Our clients have averaged a 42% YoY revenue uplift for 4 consecutive years.
- 93% of our clients have stayed with us after 13 months.
Dare to see the results once we’ve tackled what’s holding you back!