How Oats Overnight 3x'd Subscribers and Boosted LTV by 50% with SourceMedium

KEY
STATS

82%

higher LTV for retail customers

93k+

Google CPC conversions attributed

50%

LTV increase

"For us, SourceMedium has become our source of truth with data, delivering the clarity and transparency we need to make sound decisions."

Thomas Keller

Director of eCommerce

"We've always believed in having actionable data to validate how we should make decisions, and SourceMedium has been instrumental in uncovering that for us.”

"SourceMedium has transformed our business."

“Other platforms like Shopify couldn’t provide enough information for us to confidently pull the plug; we made this decision because of SourceMedium data."

About

Oats Overnight, renowned for its "spoon-free oats," is a convenient, ready-to-eat oats brand that was born out of necessity. Founded by CEO Brian Tate (a former professional poker player), the company has prioritized quality data since day one.

"We tried to use data wisely from the very beginning, but there's a big learning curve to being data-driven," said Thomas Keller, the company’s Director of eCommerce.

But when Oats Overnight scaled to a critical inflection point, they knew they needed a platform that could unlock insights to help them scale further, and that’s when they turned to SourceMedium.

And the results tripled their subscriber growth within twelve months

The challenge

Since it was founded in 2016, Oats Overnight has been on a rapid growth trajectory, from being a small team of 20 employees and 1,000 subscribers to a CPG powerhouse with over 350 employees and a whopping 140,000+ active subscribers.

But, by mid-2022, the company hit a roadblock: despite signs of strong customer acquisition, they noticed slow(er) subscription growth.

As they dug deeper, they noticed:
‍
1. Large-looming data quality issues, complicated by the maintenance of legacy systems and new product SKUs.
‍
2. Off-the-shelf data products lacked flexibility, raising questions about accuracy due to their black-box nature.

3. Native platforms lacked the depth needed to make confident decisions.

Thomas, who has a background in statistics, was fully aware that making decisions based on unreliable information is a dangerous game to play, much less how easy it is to manipulate data to tell you what you want to hear.

He needed something definitive.

The solution

As soon as SourceMedium was deployed to Oats Overnight’s tech stack, it helped reshape their subscription business.

Access to accurate numbers enabled them to move swiftly and discontinue their flagship acquisition SKU and introduce a product called the 8-pack sampler, among other things. 

Beyond that, Oats Overnight has leveraged SourceMedium to uncover data that helped them: 

1. Effectively segment their customers based on the value of a customer’s first order, which led to clarity on how those orders later influenced Customer Lifetime Value (LTV).

2. Validate (and at times refute) data from other sources, which allowed for more effective A/B testing.

3. Combined last-click attribution and zero-party data from KnoCommerce.

4. Understand their subscriber unit economics, which allowed Oats Overnight to justify increased spending across platforms like Meta, TikTok, and so on.

Sunsetting their 8-pack sampler product was a big gamble.

Looking back, Thomas and the team realized that they wouldn’t have felt confident making that decision without SourceMedium connecting their data streams across e-commerce and marketing.

The results

Oats' adoption of SourceMedium led to impressive results:

<h3 id="h3-result" class="text-rich-text-two" style="color: none;" fs-test-element="test">82% 1st-time subscriber rate</h3>
First-time subscriber rates surged from 30% to over 82%
<h3 id="h3-result" class="text-rich-text-two" style="color: none;" fs-test-element="test">93,000+  sub increase</h3>
Subscriber count increased from 47,000 to more than 140,000 in less than 12 months.
<h3 id="h3-result" class="text-rich-text-two" style="color: none;" fs-test-element="test">50% LTV increase</h3>
Subscriber LTV increased by 50% within 6 months.

"SourceMedium has transformed our business," said Thomas, and as Oats Overnight continues to scale, SourceMedium remains the company’s source of truth, trusted by Thomas, the Oats leadership team, and its external agency partners.

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