In 2022, MainStreet, a B2B fintech startup, found itself facing significant challenges after rapid initial growth during the pandemic. Their key service, R&D Tax Credits, was clouded by a series of new product launches and changes, leading to a breakdown in their customer acquisition process.
When they turned to Rosy Finch Marketing Company, the solution was a complete overhaul of their marketing and sales operations, ultimately achieving reduced customer acquisition costs by over 99%—from $175,000 to less than $500.
Let’s explore how this transformation was achieved and what businesses can learn from it.
The Initial Challenges Faced by MainStreet
In 2021 and 2022, MainStreet saw tremendous growth driven by small businesses in need and the amplification of their brand via social media. However, by the end of 2022, their customer growth began to falter. Several issues compounded the problem:
- Product Focus Lost: Multiple product launches distracted the company from its core offering, R&D tax credits.
- Tech Stack Issues: Inefficiencies between HubSpot and Salesforce led to lost leads, communication breakdowns, and poor lead visibility.
- No CAC Visibility: Marketing spend was out of control, and there was no way to track lead quality or costs effectively.
The situation became unsustainable, and MainStreet realized they needed a strategy overhaul to get back on track.
Enter Rosy Finch: A Strategic Overhaul
Rosy Finch Marketing stepped in with a clear action plan focused on five key areas to address within the first 90 days:
- HubSpot and Salesforce Integration: A core issue was the broken connection between these systems, leading to lost leads. Rosy Finch migrated marketing features into Salesforce Marketing Cloud, creating a seamless lead management system.
- Comprehensive CAC Model: Rosy Finch MC built a full CAC model, tracing the company’s costs back to its founding, enabling MainStreet to identify excessive spending and over-hiring.
- Tech Stack Consolidation: By eliminating redundant tools and streamlining the technology ecosystem, Rosy Finch significantly improved MainStreet’s marketing efficiency.
- Sales and Marketing Realignment: The team downsized, restructuring compensation plans to better align with cost-saving goals while enhancing collaboration between sales and marketing.
- Redesigning Marketing and Sales Motions: Using new CAC calculations, the sales and marketing motions were revamped to drive conversions and more cost-efficient growth.
Key Tactical Changes Implemented
The execution began with a visual audit of the tech ecosystem and a redesign of customer communication flows. The major bottlenecks in lead data transfer from HubSpot to Salesforce were addressed, allowing for seamless integration.
Website Redesign and SEO Optimization
As part of the overhaul, MainStreet’s website received a responsive redesign on WordPress to enhance SEO and better align with user preferences. Recognizing that most of their prospects engaged via mobile, the new design was mobile-first, improving the user experience and search rankings.
Additionally, Salesforce-powered chat features were introduced, enabling potential leads to get immediate answers and helping to capture leads mid-funnel. These actions directly improved lead quality and conversion rates.
Lead Data Centralization and Cost Analysis
With all customer and lead data centralized in Salesforce, Rosy Finch helped MainStreet analyze fixed and variable costs monthly, paving the way for reduced customer acquisition costs. Over-hiring and tool overspending were quickly identified, leading to team restructuring and substantial cost savings.
This streamlined approach allowed the marketing team to focus on lead acquisition campaigns through LinkedIn, SEM, and content, backed by automation to support sales in converting leads to customers.
The Impact of CAC Reduction
The results were immediate and dramatic. By December 2022, CAC dropped from $175,000 to less than $500. This massive reduction was driven by:
- Improved lead management through better integration between HubSpot and Salesforce
- Cost control measures including team reductions and tool consolidation
- Realignment of sales and marketing efforts, optimizing every step of the customer journey
In January 2023, customer response reached its highest level ever, solidifying the effectiveness of the new strategy.
Lessons Learned from MainStreet’s Success
The case study of MainStreet’s transformation highlights key lessons for businesses:
- Full Integration of Tech Stacks is Crucial: A seamless connection between marketing and sales platforms is vital for lead visibility and efficient customer acquisition.
- Understanding CAC is Key to Growth: Without visibility into the customer acquisition cost, businesses risk overspending on ineffective strategies. A clear CAC model allows companies to pinpoint inefficiencies and optimize spending.
- Collaboration Between Sales and Marketing: Aligning these teams under a unified goal of reducing costs while driving growth can unlock significant performance improvements.
Conclusion
MainStreet’s partnership with Rosy Finch is a powerful example of how strategic changes can drastically improve a company’s customer acquisition cost and overall marketing performance.
By addressing tech inefficiencies, realigning teams, and focusing on data-driven decision-making, Rosy Finch helped MainStreet achieve record success.
If your business is struggling with high CAC or disconnected systems, consider how Rosy Finch’s holistic approach can transform your marketing strategy and drive sustainable growth.
