Through our tailored marketing strategy, we have been able to successfully grow the revenue of this online women’s designer clothing store through Facebook Ads, turning an ad spend of £5,156 per month, into £24,911 in sales. A Return on Ad Spend (ROA) of 4.83X. Read how below…
This business is a high end clothing store that sources quality, designer products from around the world, with a focus on latin inspiration. They have a physical store in sought after location Chelsea, in London and already did well in store, but wanted to grow their online sales which were quite low in comparison to store results.
The store owner had been trying Facebook marketing with another agency for 6 months, and while the Return on Ad Spend (ROAS) was positive, it was not yielding a positive Return on Investment (ROI) due to the product margins, agency fees, and ad spend.
The client needed to be able to achieve 3.5x ROAS to make profit, and they were currently at a lifetime 3.34x ROA which had rapidly started to decline each week. A reasonably good result from Facebook ads is a 3x ROAS, so this was a trickier situation. But we were still confident we could do better based on the current state of the business, and seeing some missed opportunities we knew would help.
After spending time doing a deep dive into the business, the first thing we did was assess the current set up. We immediately noticed some issues:
It was clear the previous person knew how to run great ads, but may have been used to huge budgets and potentially not used to luxury products, and they didn’t adjust their tactic accordingly. Essentially, they were trying a little too hard with the strategy, and it needed to be simplified.
Despite all of this, they had managed to maintain a lifetime ROAS of 3.34x over the 6 months they worked with the client. To be fair this was skewed by a couple really good random weeks. This is actually a good result for Facebook, but this client needs a minimum of 3.5x to see a return on their ads. This is because of ad spend, a lower margin, and fees.
The first thing we did was fix up the retargeting. We created a staggered approach, with longer time intervals. Immediately sales started rolling in. Next, we started our rigorous testing phase to find out which audiences would work best, and what USPs would work well with this client.
Once we had our test results, we went ahead with two winning audiences, and created some great ads based on what we had learnt.
Initially our new ads would do amazingly well for a few days, and then all of a sudden they would die. That’s when we came across our first challenge. The core of the business was to provide exceptional, unique, designer garments. The products are very high priced, and the ‘unique’ factor means only stocking a limited amount of each item. Usually 1-2 in each size. We soon worked out that due to the low stock of the items, creating winning ads that last over time was unrealistic, because the items would sell out very quickly or would often not have the size left available for the viewer.
Another challenge faced, was the low site conversion rate. Due to the low stock, but also due to the high prices. People would often love an item, click-through, and quickly leave upon seeing the price. Other times they would leave seemingly due to being sold out in their size (we had software installed to view what was happening on site which was how we knew these issues). The website itself also needed some changes to be better optimised and improve the conversion rate.
There were a few things that helped us get this client where they needed to be. A few of those things were:
We have been working with the client for just over 4 months now, and have a lifetime ROAS of 4.46x. Already much better than the previous agency. For the last 30 days, we have managed a 4.83x ROAS. A total of 1.33 more than the target set for us by the client. Turning just £5k spend, into £25k.
We only take on clients we know we can help, which removes some of the risk for you because we will let you know if we don’t think our system would work for you. Fill out our form to see if we are a right fit, and we will discuss what we can do for you.
INCOME DISCLAIMER: The sales figures stated above are sales figures from the results we achieved for our client. Results are not typical. We are not implying that you will be able to duplicate these results and are using these references for example purposes only. Your results will vary and depend on many factors…including but not limited to your product, background, experience, and work ethic. All business entails risk as well as massive and consistent effort and action.
Our director is qualified in Marketing, Public Relations, Business and Journalism. After a career working for massive brands like Billabong, Schoolies and Cupid Media, she decided to use that knowledge to start a marketing agency, and build a great team made up of skilled marketers, each with their own specific expertise.
Working for big companies means getting a business partner at each of the big marketing platforms. This meant advanced training from teams at Google, Facebook, Bing and Adobe in how exactly to use their products. That inside knowledge has helped shape the strategies we use today to smash results for our clients.
Founder + strategy
Social Ads + Creative Writer
Social Ads + Graphic Design
Social Media + Logistics
Strategy + Reporting