Candy Street Co. are a UK confectionary brand that launched during lockdown 2020. They initially worked with another agency that were only generating a 0.6 – 0.8 Return on Ad Spend (ROAS) for their ads, which is why they came to Public Nectar to improve their profitability and scale their campaigns.
1) Grouped customers by purchase intent
Instead of mass targeting, we knew that the best results would likely come from splitting their customers up into targeting groups with a funnel.
-> Top of funnel: This was made up of users who had never heard of the brand.
In order to grab their attention and pique their interest, we used a combination of thumb-stopping creative and USP-driven ad copy. Once we had the users interested, they were then guided to the next step of the funnel…
-> Middle of funnel: Here, we worked on further building upon the customer relationship. This was done by showing ads featuring User-Generated Content such as customer reviews, or photos taken by customers themselves. Once we’d built up that trust, users were guided to the crucial “action stage” of the funnel…
-> Bottom of funnel: At this stage, the customer was ready to buy – they simply needed one final nudge. Ads featuring discounts and urgency-led offers were used to encourage the customer to act now and purchase the very same day. We didn’t stop there, though. As a customer that buys from a brand once is about 5x more likely to do it again, the next phase of the funnel was a critical step to double down on profitability.
-> Loyalty phase: This final phase focused on encouraging repeat business from existing customers. This helped us to increase the Lifetime Value (LTV) of the client’s customers, encourage repeat purchases, and add further revenue per customer that went through the funnel. This allowed us to meet each customer where *they* were in the buying process, and be much more cost-effective with the client’s ad budget. Once we had our funnel set up, we then had to identify the product that would drive their campaigns…
2) Identified their ‘‘Hero product’’
To give the brand a unique edge, we helped them identify the “Hero Product” of their offering. For this brand, that meant finding a rare, not-in-the-shops product that could only be purchased from their site. This allowed us to generate audience interest specifically focused on the brand, which we could then convert into action. The next thing we did is a key step for effective advertising with Paid Traffic (like Facebook Ads): We looked to increase their Average Order Value (AOV). This meant creating unique Hero Product Bundles, which gave higher profit margins when purchased. The main benefit, of course, is higher profitability for the brand… But the real, KEY advantage of a higher AOV was that the client was able to spend more to acquire a customer. This gave them a HUGE advantage in the market compared to competitors who may not have been able to afford to spend as much to acquire their customers. By increasing the AOV through Bundle purchases, we made sure the Economics of the campaign were in the client’s favour. We set out to identify our client’s winning ad combinations.
3) Test & scale
To help the client double down on the profitability of their ads, we conducted something called Rapid Fire Testing. In a nutshell, this allowed us to find which combinations of product, creative, and targeting produced the most profitable results. Once these ads were identified, we tested again. And then we tested again. And we kept on testing throughout the campaign, to try and make sure that we were only putting ad budget behind the most profitable ads. Then, once we had finished the initial round of testing, we began scaling the ads. This meant massively increasing the ad spend per day, which led to higher average daily orders, and higher revenue figures in turn.
And what happened when we put these 3 strategies in place for the Candy Street Co.?
These were the results:
Return on Ad Spend (ROAS): 2.22x
But the best part?
These numbers only seem to be climbing. In fact, our most recent results for the same client in the period March 1st – March 11th 2021 looked like this:
Return on Ad Spend (ROAS): 3.74x
For us, this showed yet again that you don’t have to be a huge, established brand just to see good results with Facebook Ads.
In fact, with the right strategy, the right offer, and a bit of testing, it’s possible to see impressive results and build a predictable marketing machine into your business.