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Momcozy: Catchy funnels & comfy products that moms can’t resist

- LTV SPOT: an honest review

We don’t teach you how to think outside of the box, but how to get rid of the box altogether.

In 10 minutes or less, here’s what you’re discovering:

Knowing your customer wasn’t just a test question in marketing class — it’s the best way to reach and convert them effectively.

How even DTC eCommerce brands with a relatively niche potential customer base can leverage their customer insights to grow a product line outside of their original offering.

Product recalls can have a massive effect on DTC brands — so you need a crisis response team ready at a moment’s notice.

Establishing your brand as a trusted friend and source of information can help increase LTV and create loyalty among your customer base.

Why financial metrics and ratios matter, and can signal a path to success, stagnation, or failure.

Momcozy’s Incredible Growth

Company Name: Momcozy

Founders: Athena Pan

Country: United States

Nº of employees: 200

Funding Amount: Privately held

Revenue: <$5mm

Specific cause of success: Products, campaigns, and funnels that address major pain points with their target customer

Extra:

Monthly Similar Web Traffic: 168,610

FB Ad Library: Momcozy FB ad library

Link to Hero Product: Momcozy V2 Hands-Free Breast Pump

AOV (estimate): $250

LTV (estimate): $500

CAC (estimate): $80

Momcozy’s Metrics Explained:

Based on the Momcozy Facebook ad library, their most advertised item is the V2 Hands-Free Breast Pump. This product costs just under $199, and based on the breadth of products offered, we can assume that at least 30% of customers add another $60 item to their cart + a $30 bump before checking out. This would give an AOV of around $250.

While the breast pumps aren’t likely to be purchased again, a converted customer will likely buy more breast milk storage bags, or perhaps a baby gate, bamboo baby wipes, or even the baby monitor that is offered by Momcozy. We can estimate the LTV at $500 per customer with these additional purchases.

Based on metrics from the DTC Index, we can estimate that the CAC for Momcozy is likely around $80. This puts their LTV:CAC ratio at 6.25:1, which greatly exceeds the industry benchmark of 3:1.

With industry-standard costs and current shipping rates, Momcozy’s cost of goods sold (COGS) and shipping should be no more than $70, which puts their profit margins at a likely $100 per sale.

If our estimates are correct, that means their likely Return on Ad Spend (ROAS) is 3.1x, and the company’s gross margins are about 40%.

While those are gross margins, they leave a lot of room for increasing the employee count, investing in R&D and future product lines, and of course, finding the best marketing technology to help fuel sales.

With financial metrics exceeding industry benchmarks across the board, this company would also be ripe for an acquisition offer from a larger brand (if that was something the leadership was interested in).

Momcozy has grown from providing a single product to offering a wide suite of options for new moms by following the most steadfast rule of marketing: know thy customer.

As a company founded, run, and staffed by its target demographic (moms), it’s not hard to see why they’ve been so effective.

For now, keep reading to discover how Momcozy went from offering breast pumps for moms on the move to filling up the wish lists of new moms globally by speaking to the pain points of their potential customers and leveraging an optimized, well-run ad funnel strategy.

Prospecting ads that speak to the target customer

A 9700% growth rate should be something that all business and marketing leaders want to look at to decipher the “secret sauce” of how it happened. So how did a company initially targeting a niche customer base find that much growth?

They understand their customers’ pain points and developed a comprehensive funnel strategy to explain exactly how Momcozy would solve their issues.

Once the brand found success with its initial product line, it expanded to meet other demands inherent within its demographic that were not being met.

The very definition of an entrepreneur is one who meets unmet demands within the marketplace, and Momcozy gets an A+ for their performance.

It’s not just about having an excellent product, however — they also devised a marketing strategy to find their potential customers at the right time, in the right place, and with the right message.

If you want to understand just how well Momcozy knows its customers, start by clicking the link to the video from their About Us page linked above (or here if you don’t want to scroll back up).

For extra credit, let’s dive into some examples from the Momcozy Facebook ad library:

What’s the first thing you notice when looking at these prospecting ads for Momcozy?

We’ll give you a hint: it’s a strategy that the brand employs across all of its digital campaigns.

Momcozy not only designs products that are meant to alleviate the pain points of their target customers, but they use their target customers to communicate that message.

Active new moms don’t want to be confined to a couch at home or a nursing room at work in order to pump — and Momcozy helps them achieve that goal.

Their prospecting ads use language targeted at their customers’ pain points, use influencers discussing those pain points who are new moms themselves, and most importantly, their ads all address how Momcozy will solve those pain points.

While you will see discount codes and offers on certain Momcozy prospecting ads, their campaigns and funnel strategies are powerful enough that they aren’t often needed.

Showing new moms that one of their largest pain points — a pumping schedule — can be solved by Momcozy is an extremely successful prospecting and marketing strategy.

It’s not always about ads — information can be key

While Momcozy has its prospecting advertising game on point, growing your Lifetime Value (LTV) takes more than just ads. How does Momcozy keep customers within their brand after an initial purchase and keep them buying their products?

To help create “stickiness,” Momcozy also includes informational articles that are extremely important to their target customer across their website and social media channels.

While breastfeeding and pumping may seem like a simple process to the uninitiated, those who’ve gone through the experience of newborns know that often isn’t the case. Momcozy knows the questions and fears that new moms are likely to have and provides the answers for them.

This establishes the brand as a trusted friend and information source for new moms, which is a surefire way to create a lifelong customer — who will tell their friends about your brand as well.

Word-of-mouth promotion from a personal connection is the strongest form of social proof that exists within the marketing world. Momcozy seems to be in a very good place to leverage that organically because of its strategies.

Successful bundles can help build an empire

Once a well-run campaign and prospecting strategy converts potential customers into buying customers, how does a brand create an uplift or pivot into their other product lines?

If you know your customer demographic as well as Momcozy does, bundles can be the key.

As of the time of this newsletter, the Momcozy site has so many bundle sales offers that they can’t even fit on one page:

Baby monitors, bamboo baby wipes, diapers, activewear, pregnancy pillows, and even baby gates are all product lines outside of the original lactation devices that show Momcozy knows exactly what their customers need.

Smart and personalized retargeting

To test their retargeting strategy, I selected items from both their website and Facebook ads, put them into my cart, and abandoned the website & cart entirely. Within minutes I was served this retargeting ad, which proves their data and retargeting game is quite strong (full disclosure: I am a military veteran).

Notice the two-fer included in this retargeting effort. Not only is the brand reaching back out to me with a personalized offer (military discount), but it’s also a bundle that includes items that new parents would need (breast pumps and a baby monitor).

Digging into MomCozy’s marketing channel spend

Many brands provide coupons, deals, bundle offers, and highly-produced direct marketing sales strategies within the shipping box, and that could be the strategy for Momcozy.

High-end brands that target women rather than men find a lot of success with this strategy, for a simple, stereotypical reason: men tend to rip apart their packaging and focus on the product, while women often take the time to actually look at what’s inside.

The eCommerce and DTC brand kryptonite

Although Momcozy has exploded over the last several years and grown the scale & scope of its company, it recently hit a snag that can be a major issue for any eCommerce or DTC brand:

The company didn’t have the appropriate medical device licenses in Canada for one of their wearable breast pumps (their flagship products), and so the country issued a national recall.

While the company offered full refunds, headlines like this (that hit the net and social media in February) are never good for a brand image:

Can Momcozy pull their numbers back up?

It’s easy to cheerlead for brands when things are going well, but the defining times for a firm’s leaders are how well they perform during downturns.

New moms are incredibly cautious about what types of products they will trust with their newborns, so headlines like those listed above can often be enough to scare them away from a brand forever.

Heading into some potentially troublesome economic headwinds with already flagging engagement and site visits could be troublesome for the Momcozy leadership team. If they are able to pull the brand’s numbers back up, it will be a great example of how well they can operate in both good and bad times.

Momcozy knows how to speak to this demographic incredibly well, so we will see if they can leverage that understanding to put their numbers back on track.

The Marketing Machine and Numbers Behind Momcozy

It’s difficult to find specifics on the financials for Momcozy as they are a private company, but there are a few insights that we’ve been able to decipher during our deep dive.

Firstly, they have 162 different technologies incorporated into their website, ads, and social media tech stack (via SimilarWeb):

The public numbers for their employee count range from around 10 employees to over 25, but Apollo.io says they’ve grown to 200 in 2023:

heir revenue estimates range from $1.1mm per year (GrowJo) to over $5mm per year (ZoomInfo), but as a privately-held company, they aren’t required to release that information like a public company would through SEC filings.

From the growth listed above, however, it does seem like employee increase has been driven by revenue, as we can’t find any outside funding sources via Crunchbase.

❓ How Can You Apply this?

What high-level takeaways can you discern through this deep dive into Momcozy’s DTC eCommerce marketing strategies? Let’s have a look:

Applicable insights:

The cardinal rule of marketing is to “know thy customer.” When you understand their pain points and can communicate how you will solve them, your marketing can be extremely effective.

Ad funnels are an excellent opportunity to increase AOV through bundles and discount order bumps, even if your brand incorporates those strategies in the post-purchase process as well.

Establishing your brand as a trusted friend and/or information source can increase stickiness and LTV as a result.

If your eCommerce brand is going to use retargeting (as it should), leverage data to send the most applicable message or deal to each individual potential customer.

If you plan on using post-purchase direct marketing package inserts with a male customer base…good luck. Remember:

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