Revolutionizing Customer Acquisition: How ARCHIVIST added $251,000 in annual revenue through RetentionX's lookalike audiences

ARCHIVIST is a digital luxury archive that offers exclusive sales of designer collections. It serves as an official outlet of various designer brands, providing access to exclusive capsules, limited archive sales, and designer outlets.

When ARCHIVIST signed up for RetentionX, they were looking specifically for ways to maximize the return on their ad spend. Here's how the ARCHIVIST team leveraged RetentionX insights, resulting in an expected increase of 753 new high-value customers and over $251,000 in annual revenue.

RetentionX revealed the importance of high LTV customers to ARCHIVIST's overall success. In fact, the 10% of customers based on their LTV after one year contribute almost 40% of total revenue! Numbers prove that retaining these customers and attracting more similar ones is a top priority.

In order to acquire more high-quality new customers, it was essential for the ARCHIVIST marketing team to first understand who their top customers are. For this purpose they used the RetentionX segment builder and analyzed the preferences, buying habits, and characteristics of their most valuable customers.Once ARCHIVIST identified its top 10% customers, they figured it was likely that these customers have a lot in common with people who aren't yet customers but will also love ARCHIVIST. To target these promising prospects, the team aimed to mimic these customers with lookalike audiences.

To do this, they connected their RetentionX account to their favorite social media platforms and synced the segment with their marketing audiences. RetentionX not only transfers all customers belonging to the segment, but also all associated characteristics such as AOV, product returns, or gross margin. One important factor for ARCHIVIST was that the data transfer is fully encrypted, which it is through RetentionX.To create the lookalike audiences, the social media platforms additionally utilize all characteristics they have themselves about the customers, such as age, income bracket, buying habits, and even aesthetic preferences. This allowed ARCHIVIST to reach potential customers who not only resembled their top 10% customers, but were also more likely to purchase. ARCHIVIST decided for a 1% lookalike audience with high similarity factors to run targeted ad campaigns across Meta, TikTok, and Pinterest.

This strategy is so effective because it targets individuals who are already predisposed to becoming high LTV customers. On average, the top 10% of customers are worth 3 to 5 times as much as an average customer. This means that attracting and retaining more of these customers has a significant impact on revenue.

After the first few months, the lookalike audiences' performance was already outstanding. Based on this, ARCHIVIST is expected to add 1,425 new high LTV customers in the first year alone. This will result in additional annual revenue of $251,000, which translates into a strong ROI from RetentionX.