London

MaisonVerde Home Goods

Duration

6 Months

Situation

CAC Control & Margin Recovery

The Outcome

High-impact margin recovery metrics.

Blended CAC

0%

Reduced

Revenue

0.0%

Increased

Budget Increase

0

Maintained budget

What Was Happening

This was not a failing account.

Revenue was stable. Spend was rising gradually. Platform reporting looked acceptable.

But acquisition cost was drifting upward quarter by quarter.

At £54 blended CAC, the business could still grow. It just could not scale safely.

This is how margin erosion usually starts.

Quietly.

Month 0 → Month 6

Economic Snapshot

Blended CAC

£54 → £38

Monthly Paid Revenue

£312,000 → £336,000

Blended ROAS

2.9 → 3.8

Non-Converting Spend (60 day search term review)

18% → 7%

Phase 01

Baseline Reality

The account structure was volume-optimized, not profit-optimized.
Broad match capturing mixed intent
No separation between acquisition and retention budgets
Automated bidding without margin guardrails
Remarketing pools overlapping prospecting
No SKU-level CAC visibility

Phase 02

Constraint

Competitive UK home goods auction
£128 AOV
52% gross margin
No budget increase allowed
No full site rebuild possible

Core Strategy

The Leverage Insight

Paid platforms optimize for conversion events. If that event is not economically defined, the system optimizes for volume.

So the lever was not creative. It was economic discipline inside bidding logic.

Execution

Intervention Moves

Segmented campaigns into acquisition and retention with strict budget isolation
Performed full 90-day search term audit and tightened match types
Introduced category-level CAC ceilings aligned with margin tolerance
Built recency-based remarketing tiers (1 to 7, 8 to 30, 31 to 90 days)
Excluded recent purchasers from acquisition pools
Prioritized high-margin SKUs in creative rotation
Instituted weekly CAC and search term guardrail review

Proof Set

Conversion Rate (Paid Traffic)

2.4% → 3.1%

Average CPC

£1.31 → £1.18

Paid Orders (Monthly Avg)

~5,800 → ~5,900

Stable volume maintained

Wasted Spend

18% → 7%

Blended CAC

£54 → £38

Economics Translation

Monthly paid orders: ~5,800

Reduction per acquisition: £16

Estimated margin preserved per month: 5,800 × £16 = £92,800

Estimated Preserved Over 6 Months:

£556,800

Assumptions: Orders stable at ~5,800/mo AOV £128 Margin 52% Blended paid basis

Measurement

Control & Tracking

GA4 ecommerce tracking
Conversion API integration
SKU-level margin tagging
Weekly search term audit
Category-level CAC dashboard

Signals monitored weekly:

CAC by SKU cluster

Blended ROAS

New vs returning split

Audience overlap

Frequency and fatigue

Growth Trajectory

Next 90 Days

Scale top margin clusters under £40 CAC threshold
Bundle testing to increase AOV
Expand cautiously into adjacent product categories
Maintain weekly guardrail review

If your paid revenue is growing but your margin is tightening, the issue is rarely volume.

It is allocation discipline.

We will map where CAC is drifting and show you what structural changes protect profit before scale.