KetoNatural Pet Foods

CPG Startup Exceeds Must-Hit Metrics for Next Fundraising Round

9-Month Growth Achievements

+21%

D2C Website Revenue

+116%

Conversion Rate

+137%

LTV:CAC Ratio

+48%

ROAS (Return on Ad Spend)

-26%

Ad Spend Per Order

About KetoNatural Pet Foods

In less than one year, our CPG client needed to develop a solid, positive growth trajectory within multiple D2C channels in preparation for their next financing round. KetoNatural Pet Foods, a pet food startup founded by companion animal nutrition author and activist Daniel Schulof, was poised for rapid growth and looking for an impactful digital marketing partner.

The Challenge

Paid media channels had been managed internally since the company was founded, and due to previous adverse experiences, the founder was transparent with his uncertainty about partnering with an agency. To adequately onboard this small business ready to grow, Subrosa Digital had to create a growth strategy plan as well as a customized onboarding process that truly matched the business needs of KetoNatural. 

Subrosa prepared a thoughtful and thorough proposal which identified all of the services that would be a fit for KetoNatural with additional flexibility to move through rapid growth spurts. 

“I was understandably skeptical about this new external investment for the company at the beginning. I have respect for Subrosa’s ability to work outside of the lines in generating a proposal that included flexibility and thorough check-ins during those first few months.” — Daniel Schulof

In order to hit strong metrics to appeal to future investors, the Subrosa Digital team had to ensure that KetoNatural’s digital ads were bringing in the highest quality leads, ready to buy, thus reducing ad spend waste and fueling customer growth.

The Solution

Our initial analysis showed opportunities to decrease CAC (Customer Acquisition Cost) and increase LTV (Customer Lifetime Value) and deliver a balanced growth sheet for future investors. This quickly became an early pillar of the digital growth strategy plan for KetoNatural.

“Each metric represents something individually about customer behavior and they knew how they fit within other metrics so that they could approach things in a very analytical way. The closest thing to true north in terms of marketing efficiency is how good our LTV to CAC ratio is.” — Daniel Schulof

Dashboards and insightful weekly analysis, along with scheduled and ad hoc status updates with KetoNatural provided the transparency needed to earn this CPG client’s trust. Problem-solving and outlining the next step in the bigger picture in the process was a critical component.

The Results

Within nine months, Subrosa’s strategy reduced the amount of ad spend per order by 26% and increased the number of customers converting to checkout on the website by 116% compared to the same period from the year before. These KPIs and more were the metrics that mattered to KetoNatural when reviewing the top-level data. 

“We needed relative improvements as opposed to the pursuit of specific threshold goals. Subrosa understood that concept and ran very successfully with it.” — Daniel Schulof

The next round of financing for KetoNatural hinged on hitting these KPIs, particularly with regards to the LTV and CAC ratio, that was an important customer economics indicator. Subrosa managed to not only hit these KPIs but exceed them – proving that the dollars invested were bringing in the right customers. KetoNatural saw a 48% increase in ROAS (Return on Ad Spend) in the period working with Subrosa versus the year prior. 

Subrosa Digital helped their CPG client meet its goals in the short timeframe that was available and build a strong revenue growth curve for future investors. KetoNatural is currently in Series A fundraising and looks forward to utilizing Subrosa services in its next phase of business.

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