Cranking Up Revenue by Shifting Gears from ROAS to Marketing Efficiency Ratio
Growing Cycology during an economic downturn
Discovery
Cycology was "born" in 2012 on Sydney's Northern Beaches.
The founders are a husband and wife team (Sarina and Michael) whose initial vision was to create a t-shirt range with hand-drawn designs that cyclists would get. Those initial t-shirt designs definitely struck a chord with cyclists around the world and the brand journey had commenced. Fast forward ten years and Cycology is a prominent player in the cycling gear industry, renowned for its commitment to challenging traditional cyclist stereotypes. Their unique apparel allows cyclists to express their individuality while prioritising safety and comfort. Cycology's unique selling point lies in its innovative and expressive cycling apparel, catering to men and women aged 25 to 60. With a global presence spanning Australia, the USA, the UK, and the European Union, Cycology was poised for growth.
The Partnership
A Seamless Transition
In January 2023, Cycology partnered with farsiight to tackle a significant challenge: to continue to grow during an economic downturn. During our audit process, we uncovered that the digital strategy had been heavily reliant on repeat customer purchases, limiting its potential for sustained growth. Additionally, their advertising creatives suffered from high frequencies and lacked strategic testing. Faced with these challenges, Cycology sought farsiight's expertise to revamp its marketing strategy and drive sustained revenue growth on a global scale. “They are enthusiastic, and they have a fresh approach which is what we wanted and importantly the results have followed. All agencies will talk a good story and find fault and areas of opportunity in what other agencies may have done in the past but with farsiight their approach was different and their results have vindicated this.” - Michael Tomchin
The Process
farsiight devised a comprehensive strategy to transform Cycology's marketing approach: 1. Paid Marketing Audit: Prior to onboarding the client, farsiight conducted a thorough audit of Google and Meta ad accounts. This evaluation assessed performance, account structure, creative elements, and more. Quick-win opportunities and strategic improvements were identified to meet the future objectives.
2. MER Approach: farsiight introduced a Marketing Efficiency Ratio (MER) framework, shifting the focus from in-platform ROAS to profitability. By understanding that maintaining an MER between a calculated range was essential for profitability, the team strategically scaled the budget using MER instead of in-platform ROAS, surpassing Cycology’s original projection. 3. Digital Funnel Structure: farsiight revamped the funnel structure, targeting new users while refining budget allocation. They transitioned from a heavy focus on middle and bottom of funnel to new users with a 70%/30% split, allowing for more efficient distribution.
4. Creative Strategy: A comprehensive creative audit revealed untapped potential. farsiight introduced a testing framework to identify top-performing angles and ad types, subsequently revamping designs for new arrivals, evergreen content, and promotional materials. In Q2, templates were introduced to empower the client's team, increasing creative output without compromising quality 5. Tackling Seasonality: We quickly saw a huge opportunity to expand into additional countries that weren’t being targeted in the EU to offset the seasonality in Australia.
The Performance
The strategic approach implemented by farsiight yielded impressive results:
farsiight's strategic partnership with Cycology not only met but exceeded the set objectives, driving significant revenue growth, enhancing profitability, and expanding the customer base. The transformation in marketing strategies showcased the potential for sustained success even in challenging economic environments. This case study illustrates how a client-agency partnership, powered by innovative strategies and a shift in focus, can result in remarkable business growth and profitability. MER: remained between the range calculated to achieve profit targets.
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Overall revenue: Achieved ~8.2% YoY increase in overall sales, surpassing revenue goals by ~5%.
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Media spend: ~18.2% increase on initial planned spend by utilsing MER and untapped markets to scale profitability.
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First-time purchasers: A remarkable 25.9% YoY increase, surpassing the initial goal of a 15% increase YoY.
Meet the Siighters that made this possible
There might be two i’s in farsiight but there is no i in team. To produce the best outcomes possible for our brands we work as an integrated team of specialists.
Cycology’s engagement covered media buying and creative strategy. To cover all bases our team was composed of a Lead Strategist, two Performance Managers and a Creative Strategist.
Simón Chang González
Lead Strategist
Malinder Ah-chong
Senior Performance Manager
Lachlan Ward
Senior Performance Manager
What Cycology had to say about the relationship
“Best agency experience we have had to date. They are our third agency over time. Our new vs repeat customer counts are heading in the direction we wanted. New markets are being developed and the top-of-funnel activities are driving session counts whilst still returning historically strong return of ad spends. farsiight seems very competent and has a good track record. We've been impressed with everyone we've dealt with at farsiight."
Michael Tomchin
Co-Founder
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