Lichterketten AG hired R17 Ventures (In December 2020) as a marketing agency to assist with paid media and general business development. Lichterketten was a very small business when they started and saw 10X growth through R17’s assistance not just on the paid media side but through general business strategy and advice which skyrocketed the growth.
It was after this that R17 ventures became a shareholder in Lichterketten AG and continue to scale the business and take it to new heights.
Initially, ROAS figures were not super strong but R17 persisted, knowing the importance of letting the pixels and accounts learn. This paid off mid-term with ROAS figures skyrocketing as both social proof and machine learning kicked in.
Using strong eye-catching visuals, trending products, website optimizations and more the business was able to be profitable with the right budget selection for the size of the business at the time. As the company’s infrastructures and processes improved (with the help of R17’s business expertise), more aggressive scaling was done - and it was through this that the company hit 6 figures and was able to scale profitably.
Social Proof & Patience
A key learning that R17 made was to allow the algorithm time to learn and build social proof through letting high-quality ads run for an extended period to let the interactions build up. This combined with eye-catching visuals drove our success. Customers started turning into evangelists and posting pictures of the products they had purchased into the comments of ads.
Omnichannel & Cost / Rev Focus
With the shifts in tracking due to iOS we found a cost / rev focus the key way to scale while remaining profitable. This combined with an omnichannel approach of combining channels and their strengths allowed us to reach users on a diverse number of platforms and in their various funnel stages. This included testing platforms like Pinterest which drove huge engagement at low costs.
Seasonality & Agility
We quickly realized which products were top performers and knew when to scale up and push them, as well as order the right products at the right time and be agile in adjusting our strategy where needed.
Keeping an eye on trending products in the industry and testing them was also a key to product expansion.
Our Areas of Expertise
The following overview shows in which areas we are strategically and operationally active for Lichterketten AG: