Atone Skin Clinic made 63% more profit on new customer orders in six months

Background

A Melbourne skincare clinic selling across Australia since 2020

Established in 1999, Atone Skin Clinic has become a trusted leader in Melbourne’s beauty industry. Since then, the clinic has built a loyal client base by prioritizing customer satisfaction above all else, known for its personalized skincare and highly effective treatments. In 2020, Atone Skin Clinic expanded its reach across Australia by launching an e-commerce platform. This move, brought Atone’s premium products and expertise to a nationwide audience.

However, as competition in e-commerce increased, staying profitable became more challenging. The beauty brand faced difficulties in gaining a clear view of its financial health, especially when it came to accurately tracking net and order profitability. This gap made it tough to understand which products and orders were driving the most profit.

The challenge

Growing revenue, sales and customers without seeing the benefit in profit

Atone Skin Clinic was growing revenue, generating more sales and customers but not seeing the benefit of this in terms profits in the business. Operating expenses had grown over time, and ad performance wasn’t performing at a high enough level. Atone Skin Clinic partnered with growth strategist Collective led by founder & director David Collins. David knew he wanted to provide a more profit driven service to clients and thought StoreHero was a great fit to do this.

What StoreHero did

Order-level and product-level profitability, and a clear view of operating expenses

In January 2024, Atone Skin Clinic partnered with StoreHero to gain better financial insights and uncover new profit opportunities. The first step was for the StoreHero team to sync Atone Skin Clinic’s information into the platform, generating a forecast plan and identifying potential areas for growth.

Key StoreHero features highlighted critical areas for improvement:

• Order-Level Profitability. This feature allowed Atone Skin Clinic to monitor profit on each individual order, helping them spot profitable patterns and make adjustments focused on high-margin orders.
• Product-Level Profitability. By analyzing the profitability of each product, StoreHero enabled the clinic to identify the items driving the most profit. This insight informed their marketing and inventory strategies, directing ad spend to products with the highest returns.
• Finance – Consolidated Expert View. The Finance Expert View gave Atone Skin Clinic a comprehensive perspective on the business’s financial health. This view helped them track operating expenses carefully, leading to informed decisions to cut unnecessary costs.

The results

63% more profit on new customer orders and 20% lower operating expenses

In only six months using StoreHero, the health and beauty brand achieved remarkable results:

• 63% Increase in Profit on New Customer Orders. By improving profit margins on first-time purchases, Atone Skin Clinic achieved a 63% increase in profit on new customer orders. As a result, they could scale more effectively, with higher first-order profits now covering ad costs.
• 20% Reduced Operating Expenses. With a clearer view of business operations, the skincare brand identified and reduced unnecessary expenses, enabling them to operate more efficiently.
• 40% increase on Repeat Customers sales: By freeing up resources and improving initial profitability, Atone Skin Clinic could concentrate on growing repeat customer sales, further boosting overall profit.

The partnership between Atone Skin Clinic and StoreHero has been truly transformative, enabling them to make informed, strategic decisions. This approach now drives sustainable growth and profitability.

• Profit on new customer orders up 63%
• Operating expenses down 20%
• Repeat customer sales up 40%