Villa Sophie. From a local secret to one of Germany’s most beloved social media brands.

About

Villa Sophie is a fashion label based in Münster, founded in 2018 by Charlotte Teupen (formerly Wehberg). The company operates its own online shop and has stores in Münster, Hamburg, Berlin, Cologne, and Munich.

Challenge

Our partnership with Villa Sophie began in early 2021, shortly after the label parted ways with a previous performance marketing agency.

Despite a rapid increase in sales and growing demand, Villa Sophie faced profit declines due to excessive spending on their social media campaigns.

Approach

Rapidly growing brands require meticulous cost control, taking into account factors such as cost of goods sold, return rates, shipping costs, and other variable expenses.

Our collaboration started with the creation of break-even calculations and the establishment of target benchmarks to ensure Villa Sophie’s sustained growth while improving profit margins. We implemented a multi-channel data dashboard, which continues to be a vital tool today. This dashboard allows us to track daily online store sales in relation to advertising costs and calculate daily profits based on contribution margins 2 and 3.

Instead of following the common social performance strategy of running generic ads on social media, we take a targeted approach by testing and scaling individual SKUs. Product ads that do not meet the established performance benchmarks are promptly deactivated, while profitable products are reproduced and scaled throughout the season.