140% Revenue Increase in less than 3 months
The challenge
- Increase profitability
- Scale ad spend and revenue
- Introduce new creatives, boost AOV and CR%
The result
- 143% revenue increase
- 40% ROAS increase
- 209% rise in net profit
What you will learn from this case study…
- Strategies for brand profitability
- How we significantly enhanced AOV and conversion rates
- Effective Facebook Ads campaign structure
Introduction
When we jumped in, this brand was struggling to be profitable, and they wanted to up their revenue. We saw a lot of opportunities to turn things around by focusing on freshening up the creatives, refining media buying tactics, and increasing the CR%. Their past efforts didn’t work because they were way too focused on one metric, missing the bigger picture. When we brought everything together, revenue and ROAS started to increase.
Creative Adaptation
With limited room for drastic changes to existing creatives, we dove into a detailed analysis of the brand’s assets. Our strategy was to leverage quick video formats and introduce more angles to showcase the products. Instead of promoting just the best-seller product, we also directed our efforts toward another product with a higher Lifetime Value (LTV), and easier to cross-sell with other products. This led to more recurring sales, and a higher AOV.
Increasing Average Order Value (AOV)
We successfully increased the AOV by more than 20% using the following strategies:
- Increased prices of the two main products by about 15% (with almost no decrease in CR%)
- Added valuable bundles and upsells
- Increased the free shipping threshold
- Added quantity discounts on the product page
- Bump offers and post-purchase offers
To further boost the AOV and customer experience, we improved the web design and the creatives within the site. This not only enhanced the brand’s visual appeal but also facilitated easier navigation for customers.
Boosting Conversion Rates
To further optimize the conversion rates, we added photos to product reviews. In addition, we incorporated better images and infographics detailing product usage, which enhanced customer understanding and trust in the products.
Campaign Segmentation
We created a testing campaign to test ads for new products and new creatives.
We separated the bestseller products into two categories, one for each CPA target, and created two scaling campaigns.
When we increased budgets to more than 200/day on Facebook, ROAS started to decrease. So we added Cost Cap campaigns and optimized bids every couple of days, which, together with the new creatives, helped us to achieve a significantly higher ROAS and scale the campaigns further.
Our new FB Campaign structure looked like this:
- 1 Testing campaign
- 2 CBO campaigns with broad targeting (1 per product category)
- 2 Cost Caps campaigns with broad targeting (1 per product category)
- 1 Retargeting campaign.
Conclusion
To scale an ecommerce brand you can’t focus just on optimizing a single metric. You need to focus on improving media buying strategies, creating better creatives, and increasing CR% & AOV.