- Low Pricing & Profit Margins: Products were priced too low to sustain advertising costs and long-term profitability.
- No Retention Model: Customers made one-time purchases with no incentive to return.
- Underutilized Subscription & Refill Options: Without an auto-replenishment system, customers had no structured way to maintain their hair care routines.
- Weak Perceived Value: The product’s true benefits weren’t effectively communicated, making it hard to justify a price adjustment.
- Over-Reliance on Paid Media for Sales: Without a strong LTV strategy, the brand was caught in a cycle of spending more to acquire new customers without maximizing their lifetime potential.
Transforming a Low-Ticket Hair Care Brand into a Profitable, Scalable Business with SEGA
We’ve created a unique visual system and strategy across the wide existing spectrum of visible mobile applications and found yourself in a wide, straggling with wainscots.
This hair care brand had developed a highly effective, naturally formulated product line, but low pricing and razor-thin margins made it difficult to scale profitably. Despite strong initial interest, the brand struggled to break even, as customer acquisition costs (CAC) consumed most of the revenue
Additionally, the brand had no structured strategy for customer retention, leading to a reliance on continuous ad spend to drive sales. Without a sustainable way to increase Lifetime Value (LTV) and Average Order Value (AOV), long-term growth remained out of reach.
Floca Media and the SEGA Program implemented a strategic overhaul to shift the brand’s trajectory—focusing on profitability, retention, and sustainable scaling.
To position the brand for sustainable growth, we conducted a competitive analysis and implemented a strategic price adjustment.
One of the biggest missed opportunities was the lack of a subscription option. SEGA introduced:
With higher margins and a structured LTV model in place, SEGA restructured paid media efforts to focus on profitable growth rather than constant acquisition.
Instead of broad targeting, we refined ad audiences based on repeat buyers and high-AOV segments.
Automated follow-ups provided usage tips, cross-sell recommendations, and membership upsells to keep customers engaged.
Focused campaigns on upselling hair treatments, bundles, and refills instead of just acquiring new customers.
by restructuring product offerings and messaging.
securing long-term revenue predictability.
through subscriptions and a structured retention model.
Allowing the brand to scale more efficiently with a higher ROI on paid media.