SEGA January 23, 2023

How SEGA Helped an Anti-Aging Brand Build Long-Term Customer Value and Maximize Profitability

  • Location

    Mallorca, Spain

  • Our Role

    Interior Design

  • Area

    168m2

  • Client

    Exclusive

Brand Background

A Brand Stuck in the Acquisition Trap

This anti-aging skincare brand had a premium product line with scientifically backed formulations. However, despite a high purchase interest, they struggled with retention and profitability.

Their primary issue? An over-reliance on first-time buyers and discount-driven acquisition strategies. The brand poured resources into acquiring new customers but failed to retain them. Customer Lifetime Value (LTV) remained low, and despite a strong initial ROAS, profitability was being eroded by high acquisition costs and poor retention rates.

To break free from the acquisition trap, the brand partnered with Floca Media and the SEGA Program (Sustainable E-Commerce Growth Approach) to optimize retention, increase repeat purchases, and establish a profitable growth model.

Challenges Faced by the Brand

High Customer Acquisition Costs (CAC)

The brand was spending heavily on ads but struggling to retain customers.

Low Repeat Purchase Rates

Customers were not repurchasing despite the product's long-term benefits.

Over-Reliance on Discounting

Promotions attracted price-sensitive buyers who didn’t convert into loyal customers.

Lack of a Retention Strategy

No structured efforts to nurture customer relationships or encourage repeat purchases.

ransforming Challenges into Growth Opportunities

SEGA Program Implementation: Driving Retention and Profitability

Floca Media implemented a multi-phase SEGA strategy designed to maximize customer retention, improve profitability, and create sustainable brand growth.

 

Elevating Perceived Value to Reduce Price Sensitivity

One of the brand’s key struggles was that customers viewed their products as expensive upfront purchases rather than essential long-term solutions. We addressed this through strategic positioning and value-driven marketing.

Educational Content & Thought Leadership

We reframed the brand’s messaging to focus on long-term skin health rather than just anti-aging.

Customer Testimonials & Social Proof

Integrated high-quality before-and-after results to demonstrate effectiveness and justify pricing.

Luxury Positioning Without Heavy Discounts

Instead of discounting, we introduced exclusive loyalty perks and limited-time bundled offers.

Implementing a Smart Retention & Subscription Strategy

The key to unlocking profitability was getting customers to repurchase—which required a structured retention strategy.

  • – Replenishment Reminders & Subscription Model: Customers were offered the option to subscribe for automatic refills and receive personalized skincare guidance based on their order history.
  • – Post-Purchase Email Journeys: Implemented sequences that educated customers on how to maximize product benefits, encouraging repurchase.
  • – Tiered Loyalty Program: Introduced an exclusive members-only club where repeat customers received early access to new formulations and skincare consultations.
Results

A Thriving, Profitable Anti-Aging Brand

Through the SEGA Program, this anti-aging brand shifted from an acquisition-dependent model to a retention-driven, high-LTV business.

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LTV Improvement

Optimizing the value of each customer.

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Subscription adoption rate

Ensuring stable, recurring revenue.

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Overall profitability growth

Proving that retention strategies drive long-term success.

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Decrease in price-sensitive buyers

Strengthening brand equity and reducing reliance on discounts.

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