Going from A$125,294 to A$341,207.91 in Gross Profit Within the First 3 Months

Strategy

To solve the audience overlap in Australia we tried a few, basic things at first:

1. Doing less creative testing to not use up as much of our main audience.
2. Doing more audience testing to have more audiences that wouldn’t overlap.

But none of them had any significant impact.

So we decided to go with something completely out of the box - split the budget into 2 ad accounts so the audiences wouldn’t overlap with each other. It was risky to turn off all of our campaigns - if it wouldn’t work, it would mess up our optimization & the whole account could go down.

But we knew that there was a higher chance of success than failure, & we were right - the strategy worked. What we brought out from this is that the data collects not only from the pixel level, but ad account level as well - Facebook finds new audiences that your old ad account doesn’t target. Here’s how the change impacted our revenue:

Before switching to a Wide Open Structure

After switching to it

Seeing that the testing results were just not that profitable and the process was just too long to wait, we decided to switch to a different testing method - testing on a warm audience.

This allowed our testing to be more profitable since it required less ad spend and the results were better than average. The biggest benefit of testing on warm aside from less spend is the first 500 impressions. Since Facebook heavily relies on the first 500 impressions it receives - it optimizes for them, when you’re testing on a warm audience it gives you a better audience pool of the impressions, which means more chances that the creative will pass the testing phase. After picking out the winning creatives, we pumped the engagement up to at least 200 post reactions with our engagement campaigns and scaled the creatives afterward.

o find the right angle and communicate it in a way that our audience resonated with, we first hired a native copywriter that would speak our audience’s cultural language. This boosted the percentage of creatives that passed the testing phase and also made it easier for the client to review the creatives.  To speed up the review process - we made a rule with the client: if he didn’t review a video in 48 hours, we launched it by ourselves. It made the creative review process so fast, that we were cooking up & launching 15 creatives per week.

Getting back to the creative angles - we still needed to find the best working one & build our creatives after it. After a lot of testing - we ended up with best video formats: “how to”-s & Other Industry-Popular angles which were what triggered our audience’s “buy button”.

Another huge needle mover was our scaling structure.

Because of the high AOV, it was relatively hard for us to pass the learning phase. That’s why we switched to a completely Wide Open campaign without any excludes - we weren’t even running retargeting.

And we’ve been keeping it that way for the past month and have no regrets whatsoever - this was the main thing that has helped us scale to the kind of revenues you see above.

We did a few things from the CRO side that boosted our sales in the long run. First off, we’ve added an app called Candy Rack which offers people product upsells based on what they add to cart.

After that, we did a lot of A/B testing with Google Optimize since we had to convince the client that some of the website changes they did before weren’t the right ones. This also let us find out if the changes we were making were damaging the CR% or increasing it. There were cases when we tried conversion-principles that we were doing for all of our other clients, but in this case, it didn’t work at all since the target audience was different. That’s why it’s crucial to test every small change to your website.

And of course - the email & SMS marketing part. At first, we did what we do for all of our clients - added 5 main e-commerce store flows which drove the most revenue: Abandoned Cart, Browse Abandonment, Post-Purchase, Welcome, and Added to Cart.

But the main focus for this brand was to increase their email open rates because they were getting less than the industry average. We used an advanced segmentation tactic which is based on Subscribers’ engagement and to increase the email open rates, we sent emails using the brand owner’s name instead of the brand name.

This helped the brand to achieve constant 20%+ open rates on Most Engaged and Medium Engaged Subscribers. From the SMS side - we gave all the control to the Cartloop team & didn’t look back ever since.

These were the results they delivered for us:

• 

  30x ROI
  
• 

  $20.624 Cartloop generated sales
  
• 

  $169 Average cart value
  
• 

  40% Reply rate
  
• 

  31% Conversion rate
  
• 

  2491 Active Subscribers
  
• 

  3 Unsubscribed
  

Finally - we can’t take all the credit for ourselves. A big needle mover for this case study was a clever client strategy they’ve been using for a while now.

This brand has been selling their products only in bundles - no individual or evergreen products. But, every 6-8 weeks they have a 4-day sale for post purchasers for these specific products, and since the products are so good, these sales generate 25-30% of the monthly revenue. The last time we did this sale - we generated A$50,000 in 30 minutes.

A$183,402 with a 16.23x ROI

This was done in a single day (Sydney’s Time Zone is 17 hours ahead of the US Pacific Time Zone)

All in all, this was a perfect example of what happens when an amazing brand with an amazing product comes to us & gives us the freedom to fully utilize their Shopify store’s potential.

Next year, you’ll be hearing how we scaled this brand to A$ 3,000,000 in monthly revenue, stay tuned!