How Skincare Brands boost CAC efficiency with Full-Funnel Radiance

We need to talk about your relationship with CAC. It's complicated, we know.  

At first, it's all rainbows and roses as you watch those acquisition costs drop. But then, faster than you can say "retinol," you hit a wall.  

Suddenly, your tried-and-true tactics aren't working their magic anymore. Sound familiar? Let's dive into why this happens and how to fix it – no 10-step routine required. 

From Dewy to Dry 

Many skincare brands have followed a similar trajectory in their digital marketing efforts. Initially, focusing on conversion-driven campaigns yielded impressive results. 

Initial optimization efforts led to decreasing CACs and increasing ROAS, creating a sense of mastery over the digital landscape.  

As brands reach market saturation within their initial target audiences, the effectiveness of purely performance-based tactics begins to wane. The cost of acquiring new customers increases, while the pool of potential new customers shrinks.  

This phenomenon, often referred to as the "CAC Valley," is a critical juncture for marketers in the skincare industry. 

This valley is where many skincare brands find themselves stuck. You've maxed out your initial audience, your search and conversion activities are running on fumes, and suddenly, acquiring new customers costs more than your latest miracle serum. It's enough to give any marketer premature fine lines. 

Hydrating the Upper Funnel  

Remember, the best skincare routines balance active ingredients with nourishing ones. Your marketing strategy should do the same. While your performance marketing is the active ingredient that drives results, brand building is the nourishing base that keeps everything healthy in the long run. 

Recent data from Fospha indicates that optimized brands allocate at least 18% of their budget to awareness and consideration efforts on platforms like Meta, and 22% on TikTok. 

This shift doesn't negate the importance of performance marketing but rather complements it. By investing in upper-funnel activities, brands create a broader base of aware consumers, which in turn feeds into more efficient lower-funnel conversions. It's a symbiotic relationship that drives sustainable growth. 

Aveda’s full-funnel facelift  

Even the most established brands can find themselves stuck in the CAC Valley. Take Aveda, the hair and body care giant, who discovered their new customer acquisition was drying up faster than an alcohol-based toner. Despite their market dominance, their mid- to lower-funnel media strategy wasn't cutting it anymore. 

So, what did Aveda do? They gave their marketing strategy a full-funnel facelift. 

They whipped up a YouTube Ads strategy that would make any beauty influencer jealous, focusing on boosting awareness and brand desirability among key segments. They mixed up a cocktail of Google and first-party data to create target personas, then matched their creative to the perfect YouTube ad formats. It was like finding the ideal serum-moisturizer combo for their brand. 

The results? Let's just say Aveda's glow-up was more dramatic than your before-and-after skincare selfies. They saw double-digit jumps in website sessions and search impressions. "Aveda salons near me" became the hot new search term.  

North American sales? Through the roof. New customer acquisition goals? Smashed them. 

The Glow-Up Gameplan  

Implementing a full-funnel strategy requires a recalibration of marketing efforts: 

1. Channel Strategy: Leverage the strengths of each platform. While search excels at capturing bottom-funnel intent, social media channels like Meta and TikTok offer powerful opportunities across the entire funnel.  

2. Social for Conversion: Once you've built awareness and consideration, use retargeting to seal the deal. But remember, without the upper funnel work, you'll quickly exhaust your audience. 

3. Influencer Partnerships: Find influencers who align with your brand values. They can help you reach new audiences and build credibility. 

4. Product Expansion: Consider how you can broaden your range to create new demand.  

Measuring Success  

Remember, success in this new full-funnel world isn't just about CAC and ROAS anymore. Keep an eye on metrics like brand lift, search volume for your brand terms, and waitlist numbers for new products. These are all indicators of a healthy, growing brand. 

The skincare industry moves fast but that doesn't mean always chasing the next quick fix. By investing in brand-building early and consistently, you're setting your brand up for sustainable, long-term growth.  

It's time to look beyond immediate performance metrics and consider the lifetime value of a customer base that genuinely connects with the brand.