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Luxe Apparel

REVENUE SYSTEM ARCHITECTURE: SCALING FROM DEFICIT TO 4.5X ROAS

4.5x ROAS Achieved
$2M+ New Revenue
+40% LTV Increase
90 Days to Scale

Scaling a fashion brand in today's landscape is not about "prettier ads." It is about financial architecture. When Luxe Apparel approached us, they had a premium product line and a strong brand aesthetic, but their backend acquisition numbers were bleeding. They were relying heavily on broad Meta targeting with zero retention strategy, meaning every customer acquired was a net loss on the first purchase.

Our mandate was clear: Stop the cash burn, restructure the acquisition funnel, and build a system that prints profit.

The Challenge: High Traffic, Low Retention

Upon auditing the Luxe Apparel ad account, we discovered a "leaky bucket" scenario. While their Click-Through Rates (CTR) were above industry average, their conversion rate was abysmal. The data revealed three critical failures:

  • Ad Fatigue: They were running the same creatives for 4 months, resulting in skyrocketing CPMs.
  • No Post-Purchase Journey: Once a customer bought, they were forgotten. There were no email flows to drive a second purchase.
  • Broken Attribution: They couldn't tell which ads were actually driving sales, leading to wasted budget on losers.

"We were spending $50k a month just to break even. We needed a system, not just an ad buyer." — CEO, Luxe Apparel

The Strategy: The "Tri-Phasic" Scale

We didn't just tweak ads; we rebuilt the infrastructure. We deployed our proprietary "Tri-Phasic" scaling method over a 90-day sprint.

Phase 1: Demolition (Weeks 1-2)
We cut 60% of the ad spend immediately. If an ad set wasn't hitting a 1.5x ROAS within 48 hours, it was killed. This stopped the bleeding instantly.

Phase 2: The Retention Loop (Weeks 3-6)
Traffic is useless if it doesn't return. We implemented Klaviyo automated flows (Welcome Series, Abandoned Cart, Post-Purchase Cross-sell). This increased the Customer Lifetime Value (LTV) by 40% before we even scaled ads.

Growth Graph

Phase 3: High-Intent Scaling (Weeks 7-12)
With the LTV fixed, we could afford to bid higher. We launched Lookalike audiences based on their highest-value customers (top 5% spenders). We used "User Generated Content" (UGC) style creatives which lowered our CPA by 35%.

The Outcome

By day 90, the ecosystem was self-sustaining. We didn't just improve their ads; we improved their business health. The brand is now generating $2M+ in annualized revenue from this new channel alone.

Luxe Apparel is no longer guessing where their money goes. They have a predictable, scalable revenue engine.