How Tom and Habitual collaborated on paid social

For B2C and especially DTC companies, the critical challenge is getting an early sense of what it's going to cost to acquire a customer, so that you can work out your payback period as part of your unite economics. Particularly ahead of fundraising round, it's important to demonstrate that you're able to manage this effectively, as investors will eventually be looking for a 3:1 ratio on every dollar you spend. Seedcamp-backed Habitual wanted to test and learn with paid Facebook ads: with Passionfruit they were able to have a specialist help them just a month at a time.

Passionfruit connected Habtiual to Tom, a Google Premier Partner and performance marketing specialist with 10+ years experience working for Boohoo, Missguided and Rentgrata. He guided them through the various options - which included Facebook but also other, less expensive platforms, before setting them up a test-and-learn approach that included regular reporting of metrics against KPIs.

A clearer sense of customer acquisition costs which allow Habitual to plan lifetime value and payback period ratios ahead of scaling demand generation, with their seed round funding now complete.