- Case 04
- Anonymous client · Venture validation · 10-week test
Demand was there. Paid growth didn’t add up.
A new venture in a niche fashion rental category needed to validate demand and the economics of acquiring customers. NAVIN helped shape the business case and ran a ten-week test across META and Google. The campaigns generated leads, but acquisition costs and order values weakened the case for scaling through paid advertising.
A brand and operations ready for a market test
A team of founders with backgrounds in top-tier strategy consulting had built the brand and operations for a new fashion rental venture. They needed a partner to validate demand and establish whether the business could acquire customers at a cost its model could sustain.
The project drew on NAVIN’s experience in ecommerce, creative strategy and advertising, alongside our core work with B2B companies.
How the work developed
Define what the business needs to work
NAVIN supported the founders on the business case. We helped examine the relationship between average order value (AOV) and customer acquisition cost (CAC): what customers would need to spend, and what the venture could afford to pay to acquire them.
These assumptions gave the advertising test a commercial purpose. We needed to understand whether paid acquisition could support the founders’ growth plans.
Ten weeks across META and Google
NAVIN combined creative strategy with campaign execution across META and Google. Over ten weeks, we tested demand and assessed the results against the business case.
The campaigns generated leads, showing interest in the offer. Customer acquisition costs were too high for the model, while average order value came in below the initial estimate. The venture was generating less revenue per order than expected, with too little room to absorb acquisition costs.
The project ended with a clear conclusion: paid acquisition, at the economics observed, could not support the planned expansion.
A different route for the venture
Organic growth remained a possible route. The founders judged that building it would take more time and investment than their intended pace of growth allowed.
With evidence of demand but an acquisition model that was difficult to sustain, they changed direction. They are now exploring a sale to a company with its own established channels. The rationale is that an owner with access to relevant customers may be better placed to develop the business.
Start here
Can your acquisition model support growth?
NAVIN helps teams test demand, compare acquisition costs with the business case and decide whether further investment is justified.