Fresh Clean Threads uncovers Meta's incremental impact on Amazon and DTC sales
April 30, 2024
Our first Haus test was a crucial factor in gaining executive alignment around our go forward omnichannel strategy, and specifically how to approach our growing Amazon business. This one test has given us value that exceeds the annual cost, and we are thrilled to continue to gain more value from the tests we run with the team over the next year.
Nicola R. VP of Marketing @ Fresh Clean Threads
The Challenge
Fresh Clean Threads is a direct-to-consumer (DTC) apparel company that sells high quality clothing through its website and Amazon. While the company understood their marketing's impact on direct sales, it wasn't clear to what extent their marketing also had a 'halo' effect on Amazon sales. Fresh Clean Threads turned to Haus to provide comprehensive, actionable measurement of its marketing efforts across sales channels.
The Solution
To start, Fresh Clean Threads wanted to understand Meta’s halo effect on Amazon sales since Meta is one of their highest investment channels. They used the Haus GeoLift platform to set up a scientifically robust lift test, dividing the country into two groups - treatment (run Meta ads) and holdout (no Meta ads). They designated Amazon orders as the primary KPI to power the experiment off of, but they also tracked Amazon revenue, DTC Sales and DTC revenue. Using Haus's powerful experiment design tools to determine the right balance of speed to insights, size of holdout group, and statistical power (likelihood to detect lift), Fresh Clean Threads opted for a longer test with a smaller holdout (3-weeks; 10% holdout)
The Results
The GeoLift experiment results revealed that Meta was effective at driving incremental Amazon sales for Fresh Clean Threads. Meta was responsible for a 23% lift in Amazon sales while simultaneously driving a 21% lift to DTC sales. The incremental ROAS for DTC was sufficient but quantifying the omnichannel impact made the total iROAS increase 14%. Fresh Clean Threads was excited to finally be able to quantify this impact and can now confidently rely on Meta as a lever for scaling Amazon sales, while considering the omnichannel implications of Meta, a crucial top of funnel channel for the brand.
About Fresh Clean Threads
Fresh Clean Threads is a lifestyle brand committed to simplicity, comfort, and effortless style. Born out of a desire to provide men with high-quality, versatile essentials, Fresh Clean Threads offers a curated collection of premium tees crafted from the finest materials and designed with meticulous attention to detail. These pieces embody the essence of clean living, seamlessly transitioning from day to night. Learn more at https://freshcleantees.com/
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