Magnetic Me Reduces Cost of Acquisition (CPA) by 76% with Ambassador Storefronts

Magnetic Me revolutionized baby clothing for families by making adorable baby clothing with patented magnetic fasteners. Their customers are steadfast in their passion for the unique, safe and adorable products.

Magnetic Me initially sought out a scalable solution to increase UGC and customer lifetime value (CLTV) from their dedicated consumer base. After successfully launching their ambassador program with LoudCrowd, they also wanted a way to turn their most passionate members into sales reps, without the traditional tired affiliate link.

Magnetic Me partnered with LoudCrowd to manage and build an ambassador program that was focused on:

• Providing ambassadors with a unique affiliate solution to drive traffic and sales
• Incentivizing ambassadors with free product to get more reusable UGC
• Creating continuously engaging experiences to maximize the CLTV from ambassadors

Their hope was to meaningfully grow their ambassador program while also providing top performers with a personal Storefront on the Magnetic Me site, much like the popular Amazon Influencer Storefront.

All Customer Ambassador Program to increase CLTV

Magnetic Me launched their white-labled ambassador program to all of their customers. Through LoudCrowd’s seamless integration with Yotpo, Magnetic Me offers ambassadors points in exchange for UGC content on Instagram and TikTok. Magnetic Me hit 500+ ambassadors rapidly, with an EMV of $50k+ in the first 4 months.

At the same time, members who joined the ambassador program became more profitable customers. Ambassadors’ CLTVs grew by $453 compared to their pre-membership spend, and also was $1.12k higher than non-member spend. Magnetic Me’s investment into their customers translated into higher CLTVs that paid off the investment with an ROI of at least 4x in the first couple of months alone.

After the successful and rapid growth of the program, it was time to turn top performers into powerful sales representatives. Using LoudCrowd’s Ambassador Storefronts, which brings the Amazon Influencer Storefront shopping experience, natively to brands’ eComms, Magnetic Me offered top ambassadors their own personal My Magnetic Me Shop.

Ambassador Storefronts to reduce Cost per Acquisition

 

Magnetic Me offered their ambassadors a 10% commission on all sales driven through their personal shop. The shop enabled ambassadors to drive incredible affiliate sales by:

• Featuring the ambassador’s Instagram & TikTok content automatically on their Storefront
• Permitting the creator to curate personalized product bundles of their favorite Magnetic Me items
• Offering an automatic exclusive 10% discount for any prospective shopper who visited the Storefront, equipping ambassadors with a powerful tool to drive conversions

On top of that, ambassadors love their My Magnetic Me Shops because they:

• Make the creator feel closer with the brand by claiming exclusive real estate on the native Magnetic Me eComm site
• Creates a conversion funnel that more aligns with the ambassador’s content. Rather than having an affiliate link to a homepage, creators can link directly to the products featured in their content.

Magnetic Me’s first test of their new ambassador shops was during their semi-annual sale campaign. Magnetic Me told their shoppable ambassadors to use the Storefront’s product picker functionality to personalize their shop with product bundles for the promotional period.

The simplicity of the product picker functionality enabled ambassadors to create a special curation of product bundles for the promotional period that optimized CVRs and AOVs. Simultaneously, the automatic discount and powerful UGC compelled conversions even more. The end result of the campaign metrics, from Magnetic Me Shops, speak for themselves.

Consumers who arrived on the eComm site via a Storefront converted at a CVR 35% higher than those from other marketing channels. Optimizing the social media to eComm shopping funnel, coupled with powerful UGC, enabled Magnetic Me to convert leads at a significantly higher rate.

Compared to Magnetic Me’s overall CVR during the semi-annual sale, customers who made purchases through Magnetic Me Shops had a 23% higher AOV. Cohesive product bundling for the ambassador resulted in more ‘add to carts’, because shoppers were able to quickly decipher which products work best together.

The best result being that 60% of all shoppers who made purchases through Storefronts were first-time customers with a low CPA. In fact, the average CPA of a Google Ad in the Baby & Infant Care space is $49.36, whereas for Magnetic Me Shop customers was $11.95 (avg. commission paid to the creator), a CPA that is 75.7% lower than industry.   

And all of these milestones were achieved with little management, and a team of 2 overseeing all 500+ ambassadors and Storefronts. LoudCrowd’s automations enabled seamless delivery of ambassador communications, free product, commission payouts and more.