Lamrod GPS Case Study

Background and Challenges:

Lamrod GPS, a direct-to-consumer (DTC) GPS brand, initially experienced robust sales and recognition as one of Amazon’s best sellers in the GPS category. The company operated with a revenue model based on device sales and yearly subscriptions. However, their success trajectory hit a roadblock due to the emergence of numerous low-priced competitors within the industry. This intensified price competition led to fluctuations in sales, undermining their consistent revenue stream.

Moreover, sustaining customer subscriptions became a challenge due to an unorganized follow-up system. The inability to retain customers for subscriptions added to their revenue instability.

Solution:

Recognizing the price sensitivity of the Amazon audience and the competition’s impact on market share, we suggested launching a sub-brand that offers lower-priced GPS devices. The primary goal was to capture a larger market share while maintaining a predictable revenue stream through recurring subscriptions.

To address the subscription retention issue, we planned and implemented retention marketing strategies by leveraging WhatsApp and Email automation. This involved creating targeted offers and timely follow-ups through automated messages. Additionally, we integrated sales calls when personalized assistance was required.

Furthermore, we set up Meta and Google Ads with complete analytics for retargeting. Our omnichannel marketing efforts expanded their brand beyond the Amazon marketplace audience while also nurturing the Amazon audience.

Result and Metrics:

The strategic initiatives yielded promising results for Lamrod GPS:

53% Increase in Subscription Revenue: The systematic approach to subscriptions, including automated follow-ups and targeted offers, resulted in a significant 53% boost in subscription-based revenue.
Successful Sub-brand Penetration: The introduction of the sub-brand at a lower price point effectively tapped into a new segment of price-conscious customers. This not only expanded their customer base but also generated recurring revenue through the subscription model without conflicting with their premium brand.
Optimized Product Positioning: With tailored offers and clear positioning, all products within the portfolio now effectively cater to specific audience segments, ensuring higher engagement and retention.
Unlocked new Stream of revenue: By advertising beyond Amazon on Meta and Google properties and implementing omnichannel marketing, Lamrod GPS strategically tapped into new revenue-generating opportunities and amplified its brand presence. This approach not only bolstered revenue but also heightened their brand recognition and appeal among existing and potential customers on Amazon.

Through a comprehensive strategy encompassing product diversification, optimized subscription models, and expanded marketing channels, Lamrod GPS successfully navigated the challenges posed by increased competition. This resulted in sustained revenue growth, improved customer retention, and heightened brand recognition across diverse platforms.