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A PARTNERSHIP SUCCESS STORY
Revitalizing Marie Nicole Clothing’s Sales and Profitability Amid Retail Shifts
Industry:
Direct to consumer children’s clothing company
Size:
$10-$50 Million
Multi-year Digital Transformation: Sophelle provided fractional leadership at the CMO and Director levels.
SINGLE-DIGIT SALES INCREASE in 2024 vs. 2023 WITH:
5
PERCENTAGE POINT INCREASE
23%
REDUCTION
in ad spend
in gross margin
8%
DECREASE
in customer
acquisition costs
8.5
PERCENTAGE POINT INCREASE
in operating profits
THE OPPORTUNITY
In the rapidly evolving online retail landscape, many online brands - such as Marie Nicole Clothing face significant challenges. After several years of significant sales and profitability growth, fueled by inexpensive reach via social media and pandemic-related online shopping habits, the brand now grapples with rising customer acquisition costs and diminishing organic reach. This shift has resulted in slipping topline sales and profitability. To address these challenges, Marie Nicole Clothing sought a partner to develop not only new digital marketing strategies, but also to recommend and help execute new holistic business strategies to restore profitable growth.
"Marie Nicole Clothing had built a great business with a loyal customer base, but it had become too dependent on paid media for traffic, and uneven product selling led to too many stockouts and overstocks. The company engaged with us to address the constraints on profitability, while still maintaining an upward topline growth trajectory."
Dan Sackrowitz
Practice Leader - eCommerce Profitability, Sophelle
THE APPROACH
COMPREHENSIVE P&L REVIEW
Analyzed the full profit and loss statement to understand product margins and unit economics, revealing limitations in traditional ROAS metrics used by digital marketers.
DIGITAL MARKETING STRATEGY
Developed a robust digital marketing strategy and facilitated agency selection, to align outreach efforts with corporate goals.
FRACTIONAL RESOURCES
Introduced fractional resources, including a website merchandiser, to optimize product sales, margin, browse-to-buy ratios and sell-thrus, boosting both conversion rate and AOV.
OPERATIONAL EXPERTISE
Engaged COO expertise to negotiate favorable shipping rates with FedEx and UPS, improving overall cost efficiency.
SHOPIFY DEVELOPMENT
Selected and managed a new Shopify development agency to streamline operations and enhance the online shopping experience.
STRATEGIC ALIGNMENT
Fostered collaboration between the CMO, CFO, and CTO to ensure cohesive decision-making and alignment with corporate objectives.
“The Sophelle team really helped me create a much stronger foundation for growing the business. Our digital advertising is much more efficient now, and we have a much better understanding and better control of how merchandising, marketing and promotions all work together to drive profitability”
Jane Zhu
CEO, Marie Nicole Clothing
THE RESULTS
NEW ANALYTICS STACK:
Implemented a new analytics stack to provide deeper insights into business performance and unit profitability..
REPORTING CADENCE:
Established a new daily and weekly reporting cadence for effective management of day-to-day activities.
ELEVATED WEBSITE MERCHANDISING:
Established a new approach to promotional planning and digital product merchandising; integrated website merchandising into the optimization of the Google and Meta channels.
“I didn’t fully understand the power of effective website merchandising before. Now, we are selling more products at full price, so our margins are higher, our AOV is higher, and our digital marketing is more effective.”
Jane Zhu
CEO, Marie Nicole Clothing
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