Our client, owned and operated factory in Sonora, Mexico sells high quality, sustainable and custom made furniture. The company has a big variety of products from general furniture, decor, pet furniture and free samples of textures and fabrics to close collaboration with interior designers as a B2B way of doing business. Everything is made to bring up the best customer experience and interior atmosphere. Since it is high-quality furniture, pieces are quite expensive and building a good strategy was of great importance here. The intention was to inform customers, spread awareness of how beneficial this furniture really is and to share that unique value the company provides.
The client’s needs were to lower spend and cost per purchase and to increase purchases and overall account ROAS (return on ad spend). Here it is good to monitor, calculate and learn the duration of the product cycle. Well, we have sold high quality and rather expensive products and it is natural that customers will not decide to buy, for instance a sofa with just seeing an ad for the first time. We approached to solving this with a strategy which included phases.
Following the strategy, for this Facebook account, we made several customer avatars. Customer avatars are made in order to target people more granularly and with more success of course. Since the converting period goes up to 30 days here, or maybe even more for some products, we set up separate miny strategies within the main strategy.
In the period of three months, we launched campaigns for three different customer avatars when it comes to prospecting, along with standard remarketing set up that always follows prospecting. Firstly, we focused on pet furniture and used it as a low barrier to enter the market and to prove high quality at the same time. It was a pure success and now people have that important knowledge and they consider buying the next more expensive piece of furniture for themself. Here, we used interests based on our experience and search to work the best.
Another prospecting campaign included selling almost free samples of fabrics and materials. This didn’t bring us profit at first, but those samples helped us in the long term. Free samples convert in a longer period of several weeks, but it pays off! It is always important that you provide value to the final customer, and here we gave them a chance to feel the materials, choose the best in their opinion and finally to make a purchase. Also we managed here to attract another niche which includes interior designers and to start building a more deeper, serious and long term business relationship.
We gradually built all this structure with several prospecting campaigns and standard remarketing campaigns. The ad structure includes all types of ads that currently exist on Facebook. By doing this we manage to decide which one has the greatest impact on the targeted audience, and of course, it is always good to test.
We would like to point out a few facts which are supported and easy to see in the pictures that come after the text. When we took over the account the client wanted a bigger ROAS (return on ad spend), increase in purchases and decrease in budget to be spent on ads.
This is the account overlook in the period when the previous agency was in charge. As we can see from the picture above, cost per purchase was rather high and at the same time the amount of money to be spent on advertising is really high. It means that the client spends a lot and almost nothing gets in return. These two problems were the main focus to be solved in the next three months.
We approached seriously to the problem, made the strategy document, focused on the problems and after the period of three months the situation was like this:
Now it is so much easier to see the improvement and let’s compare the data now. After the period of three month we managed to increase the account ROAS for almost 700%. Also the intention was to lower the cost per purchase and we managed to lower it from $1,000 to $231 in the period of three months which is a success! Finally, website conversion value, also explained like account earnings jumped from $2,856 to $11,714, that is more than a 300% increase. All those movements made an impact and improved overall account ROAS.
Since the account had a steady increase in the last couple weeks we began to increase the amount to be spent on ads, in this case towards even better results which would definitely lead to higher number of purchases, earnings and finally much bigger ROAS.
At the end of this case, We would like to point out the knowledge we gained working on this account. It is very important to understand the product life cycle and customer behaviour when it comes to purchase decisions to be made. Here we have a bit longer cycle but it is natural since the products are expensive and we must exclude impulsive buying. Also, the valuation of total costs are important to set up your goals for a profitable campaign to be run and at the same time to make sure client’s needs are fulfilled.