Healthcare D2C Company's LTV Maximization Strategy Drives 30% Increase in New Customer Acquisition
Designing post-purchase customer experiences to enhance LTV and establish market leadership
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01.
Client Challenge
A D2C health supplement company struggled with rising bid prices for listing ads due to intensifying competition.
Maintaining new customer acquisition became difficult under the traditional customer acquisition cost (CPO) model, leading to slowing sales growth. Aiming to reduce CPO, the client changed advertising agencies several times, but each agency faced limitations in improving ad efficiency.
Therefore, they requested comprehensive consulting from us—not just simple ad optimization, but a review of the entire business model, including maximizing LTV through improved customer retention.
A new approach was needed: one that integrated the design of new customer acquisition and customer nurturing.
02.
Massive Act's Approach
We shifted our focus from "reducing customer acquisition costs" to "maximizing customer lifetime value."
Through detailed customer data analysis and revenue simulations, we calculated that strategically increasing the sign-up rate for premium subscriptions—such as long-term commitment plans and bulk delivery plans—would elevate LTV to a level enabling competitive advantage in search ad bid prices.
Based on these findings, we redesigned the new customer purchase completion experience.
Focusing on the initial touchpoints where positive emotions peak immediately after purchase, we optimally placed multiple continuation options on the completion page.
We introduced a unique design framework enabling clear comparison of each plan's price benefits and perks, building a structure that encourages customers to choose based on their lifestyle.
03.
Project Outcomes
Optimizing the purchase completion page increased the conversion rate from standard subscriptions to premium long-term contract plans and bulk delivery plans by 35%.
LTV improved by 20%, achieving the simulated "acceptable CPO increase."
This enabled us to outbid competitors even for high-cost keywords, driving a 30% monthly increase in new customer acquisition within an intensely competitive market.
Furthermore, implementing bulk delivery reduced logistics costs by 10%, significantly improving the revenue structure.
The client praised the results, stating: "This went beyond conventional ad optimization—it transformed the business model itself, establishing our competitive advantage in the market."