4Scale
Case #1

Scaling eCom Business from $152k/mo to $250k/ mo revenue in Just one month with Facebook Ads. ROAS – 802%

Month #1 month-info

First attempts at scaling campaigns, revenue growth from $3,500/day to $9,000/day

Month #2 month-info

Is the stage of stabilization and smooth scaling of results, reaching $10,000+ in revenue per day.

Results for 2 months of work:

00-1

$250,889.00

Store growth from $152,020.60 in March to $250,889.00 in April. In fact, in a month, they grew by $100k more in revenue

00-2

$31,000

Effectively scaled Facebook ad budget from $300/day to $1,000/day; April's ad spend was ~$31,000

00-3

802%

Total ROAS in April for all advertising campaigns was 802%

00-4

Working link

Found a working link for scaling campaigns by reducing the cost of attracting a visitor

Introduction:

In this article

I will share an interesting case in which I managed to scale in revenue almost twice in just a month.

Since we

are constantly trying to bring customers to a new level, we approached this issue responsibly and decided to find options for scaling the current store.

In this case

I will talk about what actions gave a positive result. At the same time, you can use these strategies in your projects.

Some background information about the project:
Market: USA, Canada, Australia;
Niche: Goods for beauty and health;
AOV: ~120$;

Beginning of work:

Our main task was to find a working link, thanks to which we could scale advertising campaigns without losing site conversion and drawdown in the average check;

First of all, we calculated the unit economy. We realized that our task is to influence the price of the visitor. Since the site CR Rate was ~2%, and the AOV was ~$120.

Unit economics for the period of March

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In March, we only tested standard funnels and approaches in ads:

01

Used catalog ads and video creatives for Acquisition audiences;

02

Worked exclusively on interests for three GEOs: USA, Canada, and Australia

03
Audiences used for remarketing:
  • Those who viewed the product in 7, 14, 28 days;
  • Those who added to the cart in 7, 14, 28 days;
  • Those who interacted with social networks in 28 days;

Beginning of work:

The data on the number of purchases and the total amount of sales in the Shopify account and analytics did not converge due to degraded event tracking due to IOS 14.5 updates;

Campaign results in Facebook account:
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Scaling:

Based on the current situation

the project decided to reduce the cost of an attracted visitor to the site while maintaining the conversion and average bill.

The cost of User Acquisition on the site for the March period was $0.45;

Of all the hypotheses collected

we decided to test a 3-stage funnel by attracting an audience to an Instagram profile** through promotions and closing this traffic through retargeting to those involved with social networks + dynamic site retargeting.

For the period of testing

this hypothesis, we disabled all campaigns to convert to attract the Acquisition audience. We left only campaigns on Retention.

What is the essence of the test?

01

First, we prepare Instagram profile to receive traffic (make posts, pack highlights, write a profile header, make Instagram Shopping, and in the URL specify a link to the site with UTM tag [utm_source=instagram&utm_medium=cpc]

02

Then, we make posts with the product itself and promote through the “Promotion” button directly on Instagram;

03

The traffic that comes to the profile is interested in the product and, following the link in the profile header, goes to the site and buys the product;

Here you need to make the transition from advertising to the profile as cheap as possible and calculate the % of conversion from the change to the profile via the link in the profile header

What did this strategy look like:

As you can see, most of the campaigns are Instagram posts/story promotions. And only a minor part is conversion campaigns for retargeting those who interacted with Instagram and dynamic site retargeting.

Campaign results in Facebook account:
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What format of creatives did we use?

(02)

Have we managed to reduce the cost of a visitor?:

March 2021

Standard funnel with Advertising Target: Conversions

month

April 2021

Funnel through the Instagram header and post/story promotions

month

Unit economics of the project in April 2021:

Lowering the price by $0.14 per visitor increases ROAS above ~300%.

And also, taking into account the addition of the advertising budget, in total, we grew by $100,000 in the context of one month🔥

Unit-economics of the project for the month of April

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