How One Funnel Tweak Reduced CPA by 38% for a Mid-Sized D2C Brand

Our client, a mid-sized D2C brand selling premium eco-friendly home products, had been seeing moderate growth in sales but was struggling with high CPA. While their product offering resonated with their target audience and their branding was on point, they were spending a lot on ads without seeing the desired return on investment.

• Challenge: High advertising costs led to unsustainable CPA, which eroded profits. The brand needed to reduce CPA while maintaining or increasing sales volume.

• Goal: Optimize the sales funnel to improve conversion rates and lower customer acquisition costs.

Before making any tweaks, the client’s sales funnel was structured as follows:

✔ Paid media (Facebook, Instagram, Google Ads)

✔ Organic search and social media posts

✔ Visitors were directed to a generic product landing page featuring multiple product categories with broad descriptions.

✔ Customers could explore individual product pages, but without clear focus on conversion drivers like urgency, testimonials, or tailored messaging.

✔ A basic checkout page where customers could complete their purchase, but there was no attention given to upselling or cross-selling at this stage.

The main funnel tweak we made was focusing on streamlining the path from landing page to checkout and making the overall experience more conversion-focused. By optimizing specific stages, we were able to reduce friction and better guide users toward making a purchase. Here's how we approached it:

We identified that the original landing page was overwhelming and lacked focus. Customers had too many options, leading to decision paralysis and higher drop-off rates.

• Tweak: We simplified the landing page, focusing on just one product category at a time, with a strong call to action (CTA). For example, instead of showcasing multiple products, we featured the brand’s top-selling eco-friendly home products.

• Result: The CTA was clearer, and the messaging was focused on the unique value of the specific product; this focused the customer’s attention and made them more likely to click through.

The original product pages were too general, offering individual products without much context for upselling or cross-selling. Customers were left to navigate on their own, leading to abandoned carts and missed opportunities.

• Tweak: We implemented personalized product recommendations on the product pages, showing related items or complementary products based on the user’s browsing behavior or previously viewed items. Additionally, we created product bundles at a slight discount, encouraging customers to buy more while saving money.

• Result: By offering recommendations and bundles, we increased average order value (AOV) and drove higher conversions on product pages, leading to a lower CPA.

The checkout process was relatively standard but had several friction points that caused customers to hesitate or abandon their carts before completing the purchase. Customers had to enter a lot of information, and there was no urgency or incentive to complete the transaction.

• Tweak: We streamlined the checkout process by reducing the number of fields on the form and implementing one-click checkout for returning customers. We also introduced a limited-time discount offer (e.g., “Save 10% if you complete your purchase within 30 minutes”) to create a sense of urgency.

• Result: The faster checkout process and time-sensitive offer led to fewer abandoned carts and higher completion rates.

The paid media strategy was broad and unspecific. Ads were running across different audience segments without tailored messaging, resulting in less-than-optimal targeting and high CPA.

• Tweak: We refined the ad targeting to focus on specific customer personas, such as eco-conscious homebuyers or individuals interested in sustainable living. Additionally, we crafted personalized ad creatives that highlighted the key benefits of the product, like eco-friendliness, quality, and sustainability, tailored to the target audience.

• Result: By improving ad relevance and targeting the right audiences with tailored messaging, the cost per click (CPC) dropped, and we were able to lower the CPA.

After implementing the above funnel optimizations, the results were outstanding.

✔ CPA Reduction: We achieved a 38% reduction in CPA, meaning the brand spent significantly less on acquiring each customer, while still maintaining high conversion rates.

✔ Increased Conversion Rate: The streamlined funnel and improved checkout process led to a 15% increase in conversion rates.

✔ Higher AOV: The addition of product bundles and personalized recommendations increased the average order value (AOV) by 22%.

✔ More Efficient Ad Spend: With better targeting and personalized ads, the client saw improved ad performance, leading to better ROI on paid media spend.

By simplifying the landing page and narrowing the product focus, we eliminated decision fatigue. Visitors didn’t feel overwhelmed by too many choices, and the streamlined content made it easier for them to move forward in the journey.

Personalizing the product recommendations and offering tailored bundles helped improve the relevance of the products for each customer. By presenting them with items they were likely to be interested in, we increased the likelihood of purchase.

The faster, more efficient checkout process led to a reduced abandonment rate. The added urgency through limited-time discounts also incentivized customers to complete their purchase.

Refining the ad targeting and creative messaging ensured that the right people were seeing the right products. This improved the efficiency of ad spend, reducing the CPA and driving more qualified traffic to the site.

The 38% reduction in CPA wasn’t a result of one big change, but rather a series of small, strategic tweaks across the funnel. By focusing on simplifying the process, offering personalized experiences, and improving the user journey from landing page to checkout, we were able to significantly reduce customer acquisition costs for our client.

In 2025, optimizing your sales funnel isn’t about adding more steps or increasing complexity; it’s about removing friction, personalizing experiences, and targeting the right audience with the right message. These strategies can have a huge impact on your bottom line, just like they did for this mid-sized D2C brand.

If you’re facing high CPAs and want to improve your customer acquisition, start by analyzing your funnel for inefficiencies and focusing on optimization areas that will have the most immediate impact. With the right adjustments, you can unlock significant savings and better ROI on your marketing efforts.