Maximizing Revenue Growth Pre-Acquisition
Natural Elements’ challenge: Accelerating revenue & valuation
Natural Elements is a D2C food supplements brand of Natsana based in Germany; whose main investor is BAYER Pharmaceuticals. Towards 2024, BAYER moved to acquire the rest of their shares, officially making Natsana a fully-owned subsidiary of BAYER.
8 months before the deal closed, the team at Natsana reached out to me to ramp up their revenue and secure a strong exit.
That meant:
- Re-assessing their real potential
- A full review of staff and re-org
- Maximizing D2C revenue
How I led Natural Elements to a 40% revenue surge
With a tight timeframe ahead, it was essential to work on multiple fronts: not only tuning up marketing but also revamping the entire company setup, including operations, tech, and human resources.
I tackled this mission in 2 stages:
Stage 1: Assessing the potential
1. Reviewed the business case and current operations, technology use and performance of all teams - performance marketing, e-commerce, logistics and BI, amongst others
2. Reworked the organisational chart: identifying in-house capabilities and rightsizing to get the team ready for acceleration in a few months
3. Set up the martech stach and ensuring smooth reporting
4. Identified new channels to develop
5. Setting up more ambitious targets
Stage 2: Leading the acceleration
After getting both tech and teams ready to roll, I started heading that transformation alongside the C-Suite; managing 25 people in operations and marketing as fractional VP of D2C.
Together, we focused on 4 key areas to get Natural Elements to the next level:
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Diversifying Marketing Channels to expand reach:
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Maximized the performance of existing channels (Google and Meta)
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Rolled out new channels like Social Media, Google Shopping, SEO, Display Ads and Influencer Marketing
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Improving CRM for a smoother sales process:
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Switched to more agile, D2C-tailored CRM tools
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My hot take: there’s more to CRM than Salesforce and Hubspot - reach out if you want advice on my top picks for e-commerce and D2C
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Optimizing CVR to reduce acquisition costs:
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Boosted CVR
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Implemented additional flows and campaigns
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Increasing Data Accuracy & Comprehension for better decision making
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Refined management tracking system, helping not only marketing but also operations, logistics and stock management
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Upped data literacy across the teams
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Built reporting and PowerBI dashboards
The Results: A 40% increase in revenue vs initial yearly spend while keeping margins positive
In under 8 months of undergoing that transformation, the results speak for themselves: a revenue increase of 40% above the projection, for a business already generating 8 figures revenues.
And because I am allergic to vanity metrics:
This 40% revenue boost was achieved whilst staying CM3 positive - ensuring that each revenue gain effectively contributed to enhancing profitability ahead of the exit to BAYER.
My advice to pre-exit start-ups looking to boost revenue & valuation:
1. Yes, you can - and should! - grow exponentially without blowing your marketing budget. Focus on diversity of channels, solid tech, sharp data tracking and a strong team - these are as crucial as the marketing spend itself.
2. Marketing doesn’t operate in a vacuum. Make sure your marketing goals are aligned with the entire organisation; and that whoever is in charge of marketing also understands your sales, tech, and ops.
3. Beware of vanity metrics sold to you by agencies. Real marketing results show up on the profit line, so invest in strategies that drive actual profitability. If you feel like something is off with your marketing results… it probably is.
4. Remember: proper marketing data should help inform decisions outside of marketing. In D2C, it can for example help inform logistics and stock management.
5. No CMO budget yet? Hiring a fractional transformational CMO who can deep dive into every facet of your orga, rather than only on ads, can and will propel you to the next level. Of course, you didn’t hear it from me.
Need to scale your D2C startup? Let's discuss how a strategic, integrated approach can boost your revenue and valuation.