Establishing a Premium Last-Mile Delivery Powerhouse During the Pandemic
D2C Growth Unlocked: What It Really Takes to Scale to $10M Fast
Summary
• COVID-19 shut down 75% of the client’score B2B revenue overnight
• The business pivoted rapidly from B2B to a Direct-to-Consumer (D2C) model
• Built a premium last-mile delivery ecosystem
• Leveraged online channels to scale fast
• Generated $14.6M in revenue in the first full year post-pivot
• Turned crisis into a record-breaking growth opportunity
When the COVID pandemic struck in 2019, this client’s once-thriving B2B model—servicing over 75% of Australia’s fine dining scene—came to a sudden halt. Faced with unprecedented disruption, they were forced to make a bold pivot.
What followed was a rapid reinvention: a shift to a diversified online strategy that defied the odds and generated $14.6 million in revenue within their first full year of operations. Discover the behind-the-scenes decisions, scrappy innovation, and relentless drive that turned crisis into a record-breaking opportunity.
The Volume Advantage: Why More Orders Mean More Power
More Sales Drive Bigger eCommerce Wins
Summary
• Refrigerated last-mile delivery costs were significantly higher than standard eCommerce shipping
• Minimum order values were introduced to protect margins
• A loyalty program was launched to drive repeatpurchases and increase CLTV
• Data analytics identified post-first-purchasechurn as a key risk point
• Targeted retention campaigns reduced churnsignificantly
• Customers reaching their third purchase nearlydoubled lifetime value
• Returning customer rate increased by 36.5%in the first year
As one of the early pioneers in the home-delivered meat space, we quickly discovered that relying on refrigerated courier and last-mile delivery services came at a significantly higher cost compared to traditional Australia Post options used by most eCommerce brands. This meant we had to get strategic — balancing cost efficiency with customer expectations such as free shipping thresholds.
To maintain profitability while staying competitive, we implemented smart measures like minimum order values, ensuring each transaction remained viable after logistics costs. We also introduced a best-in-class loyalty program, offering rewards like milestone bonuses for consecutive orders — a key driver in growing customer lifetime value (CLTV).
Leveraging advanced data analytics and segmentation, we identified major drop-off points — particularly after the first purchase — and launched targeted campaigns with compelling return offers. This allowed us to significantly reduce churn during a critical stage of the customer journey. Once customers reached their third purchase, we found that 47% of them nearly doubled in lifetime value. By focusing on nurturing this segment, we boosted our overall returning customer rate by 36.5% within the first year of rollout.
Constant hike of average order value
How a +$1 shift translates to net profit.
Summary
• Increasing Average Order Value (AOV) became critical amid rising costs and economic pressure
• Low-spend, discount-driven customers werestrategically phased out
• Minimum order values and shipping thresholdswere increased
• Focus shifted to high-value, brand-alignedcustomers
• Customer quality improvements lifted NPS andbrand equity
• Higher AOV protected margins and maintainedtarget ROAS
• A stronger customer base enhanced long-termbusiness valuation
Amid rising living costs and ongoing economic fluctuations over the past five years, maintaining a strong Average Order Value (AOV) became mission-critical for maximising return on investment across all digital channels. To protect profitability, we strategically phased out the bottom-performing segment — customers with consistently low spend over a six-month period — and adjusted minimum order values accordingly.
While this may appear counterintuitive to the goal of increasing order volume, our analysis showed that these low-value customers were typically bargain hunters who only engaged during sitewide sales or exploited discount codes, with little to no brand loyalty. By setting higher thresholds for shipping and minimum order values, we filtered out these one-time, low-margin purchasers and focused on retaining high-value customers more aligned with long-term growth.
The result was a significantly healthier and more engaged customer base — active across loyalty programs, email, SMS, and social channels — which directly contributed to an improved Net Promoter Score (NPS). This not only elevated brand equity and customer satisfaction but also enhanced the business’s valuation by strengthening the quality of the customer database.
Furthermore, this approach ensured sustained profitability even as acquisition costs rose with increased competition. Higher AOVs allowed the brand to maintain target ROAS levels without sacrificing margin, creating a more resilient, high-performing digital sales ecosystem.
Acquisition is Expensive. Retention is Smart and makes it worth the $
Want to Scale Profitably? Start With Who’s Already Buying
Summary
• Email and SMS became high-ROI owned growth channels
• Structured weekly campaigns built habit andanticipation
• Segmented content increased relevance andengagement
• Customer traditions (e.g. birthday sale events)emerged organically
• Reduced reliance on Black Friday and high-CACperiods
• Repeat purchase rates reached up to 70%month-on-month
• Strong retention reduced dependency on expensiveacquisition
Email and SMS marketing are among the most powerful owned channels available to eCommerce brands for driving ROI and maintaining high returning customer rates — yet they remain significantly underutilised by many.
By implementing a consistent and strategic communication cadence that went beyond generic updates, we delivered tangible value through segmented content such as “Wednesday Weekly Deals,” “Saturday Collaboration Dishes,” and “Monday New Producer Spotlights. ”Over a 4–5 year period, this consistent structure conditioned the customer base to anticipate and engage with each campaign. This not only aligned with natural purchasing habits like family gatherings and seasonal moments, but also gave rise to customer-initiated traditions — including a personalised annual birthday sale event that gained its own traction.This strategy allowed the brand to bypass high-competition acquisition periods such as Black Friday, EOFY, and Christmas, avoiding inflated ad spend while maintaining strong revenue performance.
The result was a highly engaged, loyal customer base, driving repeat purchase rates as high as 70% month-on-month. By reducing dependence on constant new customer acquisition, the business was able to weather market volatility, rising customer acquisition costs, and increased competition — ultimately proving that deep customer retention is one of the most resilient and cost-effective growth levers in eCommerce.
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