Parachute Home: A Legacy of Innovation, Poised for the Future

Unlocking Profitable Growth: Turn Media Investment into a Revenue Powerhouse

Since its launch in 2014, Parachute Home has redefined modern living with high-quality, responsibly made home essentials. From organic bedding to thoughtfully designed furniture, the brand has built a devoted following that values sustainability, craftsmanship, and comfort.

As a digitally native brand, Parachute quickly gained traction through direct-to-consumer (DTC) excellence, and as demand grew, it successfully expanded into physical retail stores across the U.S. This omnichannel growth strategy positioned Parachute for long-term success, bringing the brand to more customers than ever before.

With a solid foundation and a strong brand reputation, the next challenge was clear—how to optimize marketing investments for the next phase of scalable, profitable growth.

 

The Challenge: Unlocking the Next Growth Chapter

 

Parachute’s expansion into retail, alongside its strong digital presence, opened up new revenue opportunities. However, as the brand evolved, eCommerce sales began to soften, prompting a deeper look into growth strategy optimization.

The first instinct? Cut costs, scale back media investment, and take a cautious approach. But before making sweeping changes, Parachute needed clarity on what was truly driving revenue.

• Was media investment as effective as it could be?

• How did paid media impact both eCommerce and retail performance?

• Were there opportunities to refine the media mix to drive greater efficiency and long-term growth?

Additionally, expanding retail operations had increased overhead costs, making profitable growth a key focus. Rather than reducing investment reactively, the real opportunity was to optimize spend—maximizing impact while ensuring strategic, data-backed decision-making.

To unlock these answers, Parachute partnered with M-Squared to develop an advanced measurement framework that would reveal the true impact of media investment across all channels.

 

Exploratory Data Analysis: Identifying the Key Growth Drivers

Without a robust measurement system, it had been difficult to fully capture the role of media in driving both eCommerce and retail sales. Most existing analytics were digitally focused, meaning that the halo effect of paid media on retail was not well understood.

Key Observations from the Data:

• Both eCommerce and retail sales followed similar seasonal peaks, driven by major promotional events like Memorial Day, Black Friday-Cyber Monday (BFCM), and Christmas.

• New and returning customers exhibited similar seasonal purchasing behaviors, indicating a potential synergy between acquisition efforts and retention impact.

• Media investment had been primarily focused on new customer acquisition, but its influence on returning customers was stronger than previously measured.

By reframing the challenge as an opportunity, Parachute could move beyond basic media attribution and towards a holistic strategy that maximized total revenue impact.

 

The Solution: A Data-Backed Roadmap for Scalable Growth

To accurately measure the true impact of media investment, Parachute and M-Squared developed a triangulated measurement approach combining Media Mix Modeling (MMM) and Flywheel Analysis.

Media Mix Modeling (MMM) for Precision Attribution

While Parachute had previously conducted incrementality tests to assess media performance, a fresh round of MMM analysis provided a more comprehensive and adaptable view of media effectiveness.

The model assessed four key customer segments:

1. New Customer – eCommerce

2. Returning Customer – eCommerce

3. New Customer – Retail

4. Returning Customer – Retail

By isolating each segment, MMM enabled a clearer understanding of how media impacted both eCommerce and in-store transactions.

 

M-Squared Flywheel Analysis: Optimizing for Profitability

To complement MMM insights, M-Squared introduced Flywheel Analysis—a powerful tool that mapped out customer acquisition costs, break-even scenarios, and long-term value creation.

This analysis allowed the team to:

• Determine the true cost of acquiring a new customer.

• Identify breakeven points based on Lifetime Value (LTV).

• Run scenario planning for different media strategies, optimizing for both revenue maximization and return on ad spend (ROAS).

 

The Results: A Clear Path to Profitable Growth

The Advanced Attribution Analysis revealed critical insights that challenged the initial assumption that sales were declining due to inefficient media spend:

• Media was actually responsible for a higher than expected amount of new customer acquisition and was profitable on the first order.

• eCommerce sales decline was primarily driven by a drop in organic traffic, not media-driven sales.

• Retail sales remained stable, reinforcing the importance of omnichannel measurement.

• Optimizing the media mix could unlock a 9% increase in new customer revenue and in LTV revenue—while remaining profitable.

 

Key Takeaway: Media is a Growth Accelerator, Not a Cost Center

Rather than scaling back media investment, Parachute now has data-backed clarity on where to strategically increase spend to drive both immediate and long-term gains.

 

The Opportunity: Scaling Smart for Memorial Day and Beyond

With Memorial Day approaching, Parachute has a prime opportunity to leverage these insights and make data-driven media investments that fuel scalable revenue growth.

Next Steps:

• Increase investment in proven, high-impact media channels.

• Refine media mix to optimize for ROAS and LTV growth.

• Leverage MMM and Flywheel insights to build a long-term omnichannel strategy.

 

The Conclusion: A Data-Driven Future for Parachute’s Growth

The results are clear—Parachute is in a strong position to accelerate growth through smart media investment.

Rather than seeing media as a cost to be managed, it should be viewed as a powerful lever for unlocking revenue potential.

This data-backed roadmap provides the Parachute team with the confidence to lean into media investment, optimize for profitability, and scale strategically.

With the right insights in place, Parachute is well-positioned to turn this next phase into its strongest growth chapter yet.