M.M.LaFleur, a women's workwear brand, successfully navigated the challenges of skyrocketing customer acquisition costs and the pandemic by strategically pivoting its business model. The company moved away from its initial subscription service and digital-first acquisition, re-investing in physical retail locations. This pivot transformed their stores and showrooms into a primary, high-performing customer acquisition channel, offering vital lessons for DTC brands facing similar challenges in the evolving retail landscape.
Key takeaways
Analyze your customer acquisition channels and diversify beyond solely digital; M.M.LaFleur found physical stores to be a more cost-effective acquisition method than paid digital in a changed landscape.
Consider how physical retail can enhance customer experience and acquisition; M.M.LaFleur utilizes both intimate showrooms and street-facing stores to engage different customer segments and drive growth.
Be prepared to strategically pivot your business model in response to market changes and rising costs, rather than clinging to outdated but once-successful strategies, as M.M.LaFleur did by discontinuing its subscription service.
Recognize that customer acquisition costs can fluctuate dramatically; M.M.LaFleur's experience with $16 CAC to significantly higher costs highlights the need for continuous evaluation of marketing spend.
Don't underestimate the power of a strong brand narrative and the ability to adapt; M.M.LaFleur's survival and growth after facing near collapse during the pandemic demonstrates resilience and strategic foresight.
After a difficult 2020 and 2021, women's work apparel brand M.M.LaFleur is once again in growth mode.
The company is investing in new stores and showrooms, and says that sales are picking up again after business cratered during the pandemic.
"There were multiple times where I thought maybe we won't make it, maybe the business won't survive," said founder and CEO Sarah LaFleur. She joined the Modern Retail Podcast this week and spoke about the company's new focus on stores and how it's positioning its overall marketing going forward.
M.M.LaFleur is celebrating its 10th anniversary. And its trajectory as an online business provides a great glimpse into the changing dynamics digital brands face. It first launched with a subscription model with the aim of bringing women into the fold and giving them a variety of options to try out every month. While the intent wasn't to solely be a subscription business, M.M.LaFleur was known as one for years.
During this time, the brand relied on all the old digital acquisition strategies to grow. "I remember there was a time where we used to acquire customers for $16 per customer -- I mean, it was kind of crazy," LaFleur said.
But then two big things happened: customer acquisition costs skyrocketed and the pandemic hit. Beginning in 2019, M.M.LaFleur stopped its subscription business. And it also worked to diversify its marketing budget.
Now, LaFleur said that stores have become one of its best-performing customer acquisition channels. "The thought there was let's shift our acquisition channel to now be from something else, and [using] our stores [as] a source of acquisition," she said.
The company uses two types of retail models -- showrooms and ground-floor retail. The showrooms have long catered to power M.M.LaFleur customers, giving them an intimate environment in which to shop. Meanwhile, the larger, ground-floor retail formats are intended to catch people's eyes on the streets. It recently opened a ground-floor store in the Uppe
What does this episode say about retail & omnichannel?
Analyze your customer acquisition channels and diversify beyond solely digital; M.M.LaFleur found physical stores to be a more cost-effective acquisition method than paid digital in a changed landscape.
What does this episode say about paid acquisition?
Consider how physical retail can enhance customer experience and acquisition; M.M.LaFleur utilizes both intimate showrooms and street-facing stores to engage different customer segments and drive growth.
What does this episode say about dtc strategy?
Be prepared to strategically pivot your business model in response to market changes and rising costs, rather than clinging to outdated but once-successful strategies, as M.M.LaFleur did by discontinuing its subscription service.
What does this episode say about founder & leadership?
Recognize that customer acquisition costs can fluctuate dramatically; M.M.LaFleur's experience with $16 CAC to significantly higher costs highlights the need for continuous evaluation of marketing spend.
What does this episode say about retail & omnichannel?
Don't underestimate the power of a strong brand narrative and the ability to adapt; M.M.LaFleur's survival and growth after facing near collapse during the pandemic demonstrates resilience and strategic foresight.
