Company Background
Beek is a premium footwear brand known for handcrafted leather sandals and shoes, designed in California and crafted with a focus on comfort and timeless style. Beek retain Sunnyside as their performance marketing agency of choice, founded by seasoned brand experts working exclusively with lifestyle brands.
With a strong AOV and repeat potential, paid acquisition plays a central role in driving new customer growth. In this model, margin discipline is essential. Scaling efficiently depends on understanding true blended profitability, not just platform-reported ROAS.
Beek partnered with StoreHero (profit-first analytics platform) and Sunnyside to bring contribution-level clarity into acquisition strategy.
The Challenge
In October and November, Beek and Sunnyside implemented StoreHero to bring blended profitability and contribution margin into view. What became immediately clear was that catalog prospecting spend wasn’t always driving new customer acquisition profitably, a nuance that platform-based ROAS & isolated channel reporting failed to reveal.
When the team tested pulling back on direct response spend in early 2026, they saw new customer counts drop while costs remained relatively fixed. In other words, they were spending on prospecting that didn’t move the needle on new profitable customers.
This highlighted two structural problems:
- Prospecting budget was not aligned with contribution margin outcomes
- Cost patterns were decoupled from revenue generation at the new-customer level
The business needed clarity on which acquisition tactics genuinely delivered new customers at acceptable contribution economics, and which were potentially eroding profitability under the hood.
The Solution
With StoreHero live, Beek and Sunnyside
- Evaluated blended CAC against true contribution margin instead of ROAS
- Compared catalog-level spend to net-new customer returns
- Tested budget increase & pullbacks with contribution impact rather than surface-level revenue signals
4 Key Shifts Enabled by StoreHero
Reframe Performance Beyond ROAS
StoreHero showed that traditional ROAS masks profitability drains when media spend isn’t tied to profitable customer acquisition. The team started prioritising spend where contribution margin was positive, not where ROAS merely looked acceptable on platform dashboards.
Diagnose Catalog Spend That Didn’t Drive New Customers
When Sunnyside pulled back on Beek prospecting spend and observed new customer decreases while costs did not adjust, it became clear that:
- Catalog prospecting was a profit leak, not a growth driver
- Budget allocation needed rebalancing toward channels that produce positive contribution
This insight directly influenced channel strategy.
Align Budget Decisions With Contribution Economics
Budget increases and decreases were tested against contribution and blended CAC, not just revenue or ROAS. This disciplined approach prevented continued spend in areas without positive profit outcomes and moved the team toward financially grounded re-investment.
Align Budget Decisions With Contribution Economics
Although StoreHero was implemented late in the year, the early lessons were pivotal.
Thanks to the work of the Sunnyside team utilising StoreHero, Beek now has:
- Clarity on which paid tactics genuinely deliver profitable new customers
- Understanding of how blended spend impacts profit
- A path to reallocate future budget toward contribution-positive acquisition
Outcome
Thanks to the work of Sunnyside utilising StoreHero, Beek now has a profit-first lens on paid acquisition, anchored in contribution margin rather than platform ROAS. Budget decisions are made with a clearer view of whether spend drives profitable new customers, not just superficial revenue.
This realignment sets the stage for more sensible scaling in future media cycles, with less guesswork and more economic confidence.
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Scott Reynolds
