Function Growth, also referred to as FX, was launched last year as a “snap-in, in-house” agency partner for founder-led DTC brands. Under this model, the agency made $1.46 million helping grow startups and winning projects with five clients.
Function Growth established itself as a plug-in agency to boost e-commerce for DTC brands
One example of how the agency works is with its client Wellow, a compression sock company. FX helped launch and grow the company, which posted $5 million in revenue in its first year and is projected to deliver $24 million in revenue in its second year.
During the pre-launch phase, FX led brand building, product development, price strategy and financial planning. It also created a digital marketing plan that included launching up to 30 ads per week and building Wellow’s e-commerce strategy. One example was a feature that offers consumers the chance to purchase a pair of “mystery socks” at an additional cost prior to checking out.
Overall, Wellow’s website conversion rate was 280% higher than the industry standard in its first year.
For another client, Shady Rays, it used the sunglass maker's customer database to create technology that allowed the business to curate its email and text communications based on customer cohorts, shopping behaviors and offers. This resulted in 25.9% year-over-year growth in June, July and August last year.
Through that strategy and others such as website personalization and a tech-based upselling strategy, Shady Rays more than doubled the conversion rate from email communications and increased the average order value by nearly 27.7%