Case Study: Nuts.com boosts new-customer revenue with Omnitail's lifetime-value bidding

Nuts.com grows new-customer revenue 140% with Omnitail

Nuts.com, an online retailer of nuts and healthy snacks, faced the challenge that a standard ROAS (Return On Ad Spend) target failed to distinguish between sales to new customers and existing ones. They understood that acquiring a new customer was a long-term investment, as they tend to make repeat purchases, but their marketing system treated all sales equally. Their challenge was to maximize new-customer acquisition, even if it meant taking a loss on the first order, without sacrificing overall profitability.

The vendor, Omnitail, solved this by wiring Nuts.com's own lifetime-value calculations directly into its daily bidding system. This allowed Omnitail to set bids based on the contribution margin over a customer's entire lifetime, intentionally spending more on acquiring new customers. As a result, Nuts.com saw a 140% increase in new-customer revenue and a 122% increase in new customers acquired year over year, while sales to existing customers continued to grow.

Nuts.com