“How A Supplement Company Exploded Their Profitability In 45 Days Without Ramping UP Their Facebook Or Google Spend”
For most profitable funnels, Facebook and Google Adwords are vital to bringing in new customers every day but there’s only so much you can invest in these platforms before your ROI starts to stagnate or plateau.
After all, Facebook and Google are just one data provider and their clients have to make sales within their “closed gardens”.
Facebook especially has its limitations.
You’re relying on making sales as people browse social media. The second they swan off to do something else you’re no longer in their thoughts until they return to browse their newsfeed.
With that, re-targeting is limited too and it can be tough to build multiple custom audiences that produce a healthy ROI on your ad spend.
Outside of the FB universe, your best prospects are shopping around, doing their research, looking at various solutions to their problems.
This is 95% of the internet and buying intent is just as serious (if not more so) here.
To highlight what can be done with an already profitable funnel in the supplement space, I’m going to share a client's recent results.
Their starting point was similar to most successful vendors in this space:
High margins to work with
Free trial offer
ROI was $1.10 for every $1 spent on FB
Retargeting produced $1.30 for every $1 spent
Adwords/Bing produced slightly better but cost was higher
Their $40k/month ad budget had once performed better than this but as they looked to grow, their most profitable campaigns either stayed the same or dived.
They couldn’t seem to hit that sweet spot of spending more and making more despite many efforts to do that.
Immediately we looked at their funnel and noticed their funnel was a little off the mark.
It didn’t really aggravate the pain enough and therefore the solution pitch was a bit weak.
Their CTA’s could be stronger.
The design could be simpler and cleaner on mobile devices.
Our team went to work and 7 days later we had sharper copy, a design that passed the “eye-test” and CTA’s that were much more enticing for the market.
We then looked at lifetime value of each client.
Again, a little on the low side as they were just going for the one upsell.
That changed to a killer 3 step one-time offer sequence which netted us an almost instant 76% increase in their average order volume.
Going from $120/sale to $212/sale
was BIG for them.
But that wasn’t really how we really accelerated growth.
We took about 33% of their current FB spend ($15k) and brought them into our world of big data and premium ad inventory.
The audiences we can build by matching 1st party data with 3rd party data mops the floor with anything Facebook and Google can do in terms of targeting.
We leveraged the data we had on their existing buyers to build a solid custom audience right away.
Every time someone clicks on one of our ads, we pull an additional 15,000 data points (compared to FB’s lame 500) and then we have the power to do a lot of cool stuff with lookalike audiences.
By day 30, we were running a decent volume of traffic to the lookalike audiences and filtered out the vast majority of prospects who were not a fit/no longer in the market by matching our data with 3rd party data.
As we continue to pull more data points from an already near perfect audience we’re able to ramp up the ad budget without seeing any kind of drop off.
In fact, at time of writing, this campaign continues to increase in profitability as our clients continue to figure out their back-end and invest more in our traffic (bringing their average CPC down).
They make 2.2x the amount of money with us than they do with Facebook now.
Their success is down to how they drive traffic with our technology:
- They push VERY targeted ads to their audience 400 milliseconds after their prospects have shown buyer intent by Googling a relevant keyword (This is called “grapeshotting” and we’re basically leveraging real-time browsing habits to display ads)
- Their ads ONLY show up on highly relevant websites to their niche so it’s not like our best prospects are being asked to buy a supplement while they’re reading the devastation hurricane Maria caused on NY Times.
- All the clicks they generate from FB are then retargeted outside of FB’s closed garden so they’re staying front of mind more and always in the prospects mind throughout the buying process.
(FYI - Just doing retargeting outside of Facebook increased ROI from $1.30 to $2.50)
As they move into new product offerings and geographic locations, they will again be able to double or triple down on traffic without seeing any kind of drop off.
If like them, you’re doing well with Facebook ads or Google and you’ve reached the stage where you can invest in every affordable, quality click you can get your hands on then you need to look at this traffic source.
“Mega-Scaling” to 2x, 3x or even 10x the amount of business you’re doing now requires a more “everywhere” approach and as your competition are (for sure) not doing this yet, the opportunity for growth is MASSIVE.