We Analyzed Our Biggest Client Failure (And This Is What We Learned)

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Aug 12, 2025

In this engaging discussion, growth strategist Ricardo Pouwels from Tier 11 shares valuable insights from a challenging client case in the gardening niche. He highlights the critical importance of tracking key metrics like new customer acquisition costs, particularly when a business model is flawed. The conversation delves into the struggles of reallocating advertising budgets between Google and Meta amidst stiff competition. Pouwels also emphasizes the necessity of patience and strategic planning, especially when client expectations misalign with reality.

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INSIGHT

Paid Media Can't Save A Flawed Model

Paid media cannot fix a fundamentally flawed business model.
Ralph Burns and Ricardo found marketing couldn't overcome pricing and antiquated data practices.

ANECDOTE

Gardening Client Faced Brutal Competition

The gardening client sold highly commoditized products and faced brutal price competition.
Ricardo discovered the business had declined for years and 60% of revenue came from shrinking repeat buyers.

ADVICE

Measure New-Customer Metrics First

Track NCAC and other MPIs before you judge channel ROAS.
Measure new-customer revenue separately so short-term top-line drops don't kill longer recovery plans.

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