MandM: Moving Toward the Optimal Budget Mix and Driving 20% New Customer Growth Year-over-Year

The Challenge

Before partnering with Fospha, MandM was looking to optimize customer acquisition efficiency and use it more confidently to drive the business. Budget decisions were largely driven by channel-level performance metrics that favored lower-funnel activity. As a result, investment became concentrated in demand capture channels that generated strong click volumes but delivered diminishing incremental returns.

At the same time, demand generation channels appeared under-invested relative to their true acquisition efficiency. However, without visibility into channel saturation and scaling potential, reallocating budget carried significant commercial risk.

The Solution

Armed with a clearer picture of acquisition efficiency, MandM began making budget decisions with a level of confidence that hadn't previously been possible. Working with Fospha on a weekly basis, the team gained visibility into channel saturation curves and scaling opportunities, consistently uncovering the same pattern: demand capture channels were over-saturated relative to their incremental contribution, while demand generation channels had significant headroom to scale efficiently.

Acting on Fospha's recommendations, MandM introduced CAC as a guiding KPI for the first time and began a deliberate reallocation of its budget mix. Across European markets, investment was shifted towards demand generation channels with greater incremental growth potential. The change represented a fundamental shift in how channel performance was evaluated - from click volume to acquisition quality.

Across seven European markets (DE, DK, FR, IE, NL, PL, UK), 1 Apr – 15 Jun 2026 vs 1 Apr – 30 Jun 2025 (YoY):

• +20% blended new customer conversions from a 19% increase in paid media spend
• Paid Media CAC down 8% YoY and blended CAC held stable at higher investment levels
• +21% blended new customer revenue YoY
• +7% blended revenue growth YoY

By reallocating budget towards higher-opportunity channels identified through Fospha's headroom analysis, MandM delivered efficient growth at scale - driving 20% more new customers while reducing Paid Media CAC by 8%, despite increasing investment by 19%.

“Fospha has helped us successfully optimize our CAC and confidently use it to drive the business, which is a game changer in the long run. We've been able to understand where to move investment in order to better optimize the channel mix.” - Phil Twigg, Head of Digital, MandM

The Bottom Line

MandM's success demonstrates the impact of combining clear acquisition measurement with confident budget decision-making.

By introducing CAC as a core KPI and leveraging Fospha's weekly headroom analysis, the team gained a clearer understanding of where incremental growth could be achieved most efficiently. This enabled a deliberate reallocation of investment across channels and markets, shifting budget towards opportunities with greater acquisition potential.

The result was efficient growth at scale: 20% more new customers, an 8% reduction in Paid Media CAC, and 7% blended revenue growth across seven European markets.

Footnotes

• Impact Type: Blended, across all paid media channels. All CAC figures relate to Paid Media CAC, unless otherwise stated.
• Time Range & Period Comparison: Period-on-period analysis: 1 Apr 2026 – 30 Jun 2026 vs. 1 Apr 2025 – 30 Jun 2025 (YoY).
• Markets Analyzed: DE, DK, FR, IE, NL, PL, UK