Case Study:

Scaling Tech eCommerce Business from $150-$250k/MO to $862k/MO with Facebook Ads ROAS of 6.02

Total Sales Apr

Introduction

In this article, we're going to share our honest case study what it took us to transform this eCommerce business from averaging 150-250k/MO for the last 6 months, straight into 862k/MO giant aiming at the 8-figure level.

All this with ROAS of 6.02 and in an about month's scaling time, plus a few months of preparation.

We're going to cover what brought results, our preparations, planning, core steps we took, and key media buying strategies we've used to make this happen.

Initial Goal With the Client

➜ To capitalize on client restocking the CA warehouses and scale them from averaging 150-250k/MO to close to 2x that – 400k/MO. All this while maintaining their current ROAS of 3.8+.

Results

Edited FINAL

✔ Hitting 862k/MO revenue.

✔ Reaching 25-30k revenue days.

✔ Increasing Facebook ROAS to 6.02x. (DISCLAIMER: While a big part of ROAS increase was new winning creatives, another part of the ROAS increase could certainly be allocated to the "black swan" event of COVID-19 and proper utilization of its momentum. Otherwise seeing ROAS increase as you're scaling is an unlikely event.)

Preparation Was the Key

The scaling itself took us just ~30-days, but the first thing to understand is that these types of results do not come from anything overnight. We had to earn them way before it!

We tell you all this because we believe in honesty and openness. There are way too many “gurus” or “one man agencies” who paint unrealistic pictures. Get the client and fail to deliver.

Now let us explain how getting these results works…

We’ve started to work with this client quite a few months back, but the reason why we haven’t been able to try to scale higher than 150-250k/month was due to stock issues in the US warehouse.

(Fun fact, this is often the most significant problem fast-growing eCommerce retailers are having. They lack the cash flow to fund the needed stock levels for rapid scaling. There are ways around it, but it always takes a bit of time to get loans and credits arranged.)

Now, this meant that we had a few months to “maintain the scale based on inventory left,” some months it was below average, and sometimes more.

But the secret in getting these results was utilizing this time for preparation.

We’ve tested a dozen creatives, sales, ad account structures, and funnel changes.

We did over a 150+ smaller and bigger tests.

And by the time they received a new stock - we knew the best combinations: best creatives, and the best account structures for this account like the back of our hand.

We were able to combine all the things that you will read below into one and at the same time, utilize momentum created by COVID-19 and hit the gas pedal to the results that far surpass initial goals.

Now let’s talk about what strategies 2 to 6 made it all happen.

Micro-Segmented Remarketing Funnel Boosted ROAS by +20-30%

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Usually, the first step when a new client comes to us is revamping their remarketing funnel.

Often, it’s the most overlooked, low-hanging fruit within Facebook Ads.

What a lot of people do is they run big audiences, like 60 or 90-day website visitors, set-up a few ads to and that’s it.

But they forget that there is a real human behind that screen. They often get so pissed at their brand from seeing the same two ads over-and-over again for 60 or 90 days, that they will not buy from that brand even if they would need the product!

Most likely, you know how it feels. We all have been victims of this.

Therefore, we employ a granulated and micro-segmented approach in remarketing. It depends on case-to-case, but often after optimizations, we’re seeing about a 20-30% boost in remarketing ROAS compared to the “90-day approach”.

It’s the same structure that we’ve applied for this client.

We split people by intent:

  • Warm Upper Audiences - Content Engagers
  • Warm Bottom Audiences - Website Visitors
  • Hot Audiences - Add to Cart / Initiate Checkout Based on Event's Triggers
  • Past Customers

And then segment them further by days:

  • 1-3 days
  • 4-7days
  • 8-14 days
  • 15-30 days

This allowed us to swap ads depending on the phase a customer is at and day range.

The best part is that it allowed us to create a specific experience website visitors will be taken through to the minuscule details.

What we usually do in our remarketing funnel is:

  • 1-3 days – We remind customers about the product, introduce different USPs, introduce the brand, it’s mission, drop in a few review ads.
  • 4-7 days – We start building up the “craze.” We run a lot of review content, influencer videos, 3rd party articles about the brand to make it seem like it’s “everywhere.” We also introduce low stock alerts through Dynamic Product Ads carousels so they would seem genuine.
  • 8-14 days – We start stacking small discounts, offering some other ways to buy the product, for example, a mega-bundle.
  • 15-30 days We increase the discounts as a last try to get the customer to convert.

Are You Ready to Transform Your eCommerce Store into an 8-figure Powerhouse?

Let's figure this out! Book a FREE 45-min Discovery Call with us and let's talk about the possibilities of your brand.

New Prospecting Campaigns Structure Capitalized on Facebook AI to Decrease CPA's

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Another thing that was a significant deciding factor in this client's success was the utilization of the right account structures for prospecting audiences.

We can't stress enough importance to this.

In 2018, and 2019 it was usual to run Facebook Ads in a very controlled and micromanaged manner.

But things have changed now.

Artificial Intelligence is making huge advancement leaps, and Facebooks A.I. engine is quickly becoming one of the smartest A.I. engines out there.

It knows even such things as where and when you're most likely to buy so that it could show you the right ad at the right minute. It knows whatever you're buying a product at 9 am at the start of your work, or at 8 pm when you get back home...

And the deeper you dig into the Facebook A.I., the creeper it gets.

It knows your mood, in case you're a woman, even your menstrual circle phase based on your browsing behavior changes. How quick you're changing websites, what type of posts are you engaging with, how long do you stop the scroll for on particular posts, etc.

There are millions of signals you're sending it.

It's downright creepy.

But as eCom growth experts, it's our job to utilize this the best way we can for our clients.

Thing is older account management structures that do not allow you to leverage its power to the maximum.

What is working for us right now is what is called C.B.O. (Campaign Budget Optimization) and our Ad Buying Framework we're currently using – D.A.S.M. - Dynamic Ads Stacks Management.

What it entails is creating 3-4 "Stacks" of 1 C.B.O. Campaign with 5 audiences and 4 creatives in each.

What we do is set-up optimization goals as Website Conversions – Purchase, to let A.I. know what the desired outcome is. 7-days click and 1-day view optimization window.

Now for audiences is where the magic happens. We use open or minimal broad targeting, letting A.I. pick the highest probability converters.

Usually, we have one audience with completely No Targeting set-up; maximum restrictions can be in the age gap and gender.

We have 2 5-10% L.A.L. best-performing audiences in a range of 15-30MM.

And 2 Interests that are at least 50-100MM in size. Sometimes even using "expanded interests" feature on Facebook.

After setting it up, we give it a few days to run.

Clean up 1-3 worst performing Ad Sets, and we're left with a working "Stack."

In case these "Stacks" does not work out, what we do is combine a few different "Stacks" winners into one "Best Audiences Stack."

Now the whole D.A.S.M. framework coverts much more than that. The beauty of it is in how you're able to dynamically test audiences and creatives at the same time while having a smooth account evolution approach that doesn't put you in a "locked way of doing things," but allows you to evolve the structure as things change.

We even have a 19 A4 pages S.O.P. (standard operating procedure) written about it with graphs and decision trees so everybody in our team could execute it flawlessly.

But let's leave that for another topic.

Multiple Video Ads Structures & Sales Angles Ensured Stability When Scaling Up

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Another significant factor in the success of this client was the utilization of multiple video structures and sales angles in their ads.

It means using multiple ways to sell the same product.

Now, why do you need it?

It’s because only a small segment of your whole potential audience will relate to one of the angles, and by using only one angle, you’re severely limiting business scalability by not utilizing other likely segments of the big audience.

For this client, there were two types of prospecting ad structures that were working the best.

One of them was our frequent winner structure of:

Intro – USP – USP – USP – Social Proof – Social Proof – Result - CTA.

What it means is that we’re starting the ad video with the "Intro" or “Hook” by asking a question or mentioning a statement of their paint point.

Then we stack the unique selling propositions of the product.

Add a few cuts of user-generated reviews shots.

And present a call to action at the end.

Another structure that worked well was:

3s Catchy Cut from the Review Video – Intro - Long Review Talking About Paint Points and Presenting the Product - CTA

This is a formula where you put the best “catchy” 3s part of the review at the start, do a 2s intro shot into brand/product so the customer would be aware of what the person is talking about and present the full review with the CTA at the end.

Now we had these structures adapted with multiple sales angles:

This meant taking a winning video structure and trying different “Paint Points Hooks” to it.

To create these, it takes an excellent understanding of your customer base, their pain points, deepest desires, and, in general, a solid understanding of psychology.

Let’s take noise-canceling earphones as an example:

  • Does loud noise stop you from listening to what you love? Meet ___... World best noise-canceling earphones.
  • Can’t concentrate at work? All the noises are distracting you? Meet ___... World best noise-canceling earphones.
  • Want to experience a next-level gaming experience on the go and get an edge? Meet ___... World best noise-canceling earphones.

It’s simple but requires a perfect understanding of the most profound emotions and what makes people tick.

We usually achieve it by doing extensive, 40-60 slides research.

And even then, it takes us some time to create as many different videos as possible and test them through to find “tier 1” winning hooks.

Vertical and Horizontal Scaling Allowed to Utilize Recourses In the Most Efficient Manner

Now then things are going well, the next question is how do you scale up?

In general, there are two ways to do it.

Vertical – it's where you're increasing a daily ad spends on current campaigns.

And…

Horizontal – it's where you're increasing the number of campaigns.

To scale this account, we used both of them in sync.

Scaling horizontally up to a few prospecting D.A.S.M stacks.

And going up +20-50% Vertically to increase the amount of data we feed to the algo per D.A.S.M Stack and letting Facebook's AI do its magic.

Are You Ready to Transform Your eCommerce Store into an 8-figure Powerhouse?

Let's figure this out! Book a FREE 45-min Discovery Call with us and let's talk about the possibilities of your brand.

Creatives Shuffling Made Sure Results are Sustainable

The last thing in the account is to ensure lasting performance.

It’s is often the hardest part.

At one point or another, current winning creatives will start to “burn out.”

This means that majority of the audience has already seen it and will become “blind to it” in their newsfeed.

At this point, it’s usual to see the performance of advertising to drop significantly.

The secret is to be prepared for this point and be proactive about it.

What we did with this client was that we’ve tested continuously at least a few new videos a week and created a substantial backlog of new winning creatives ready to change the ones that are currently running.

We call this - "creatives shuffling" where you are continually introducing new creatives, removing old ones, and after some time (when the audience gets the rest from it), rotate them back in.

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