₹0 to ₹2500K in 63 days - 4X ROI

Challege: 

A new brand in the kids clothing space faced several challenges, such as a high cancellation rate of 16% and a majority of cash on delivery (COD) orders. The brand needed to increase their net revenue and improve their ad campaigns to reach their target audience effectively.

Solutions: 

To address these challenges, we implemented several solutions. We created a larger catalog and optimized the website and product images to improve the customer experience.

We also offered value packs, which helped increase our average order value and sustain our cost-per-acquisition (CPA). We tested different objectives and creatives on Facebook and used UTM's to track our performance on Shopify and Google Analytics.

We broke down our ad structure by top cities, gender, age, and catalog categories, and gradually scaled our ads using automatic rules.

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Results:

Our solutions proved to be effective in achieving our goals. With a total ad spend of ₹622K, Facebook contributed the most significant amount to our ad spend at 85%, followed by Google at 15%.

Our net revenue after cancellations was 2500K, and our gross revenue was 2984K. Our ad spend achieved a 4X net ROI. Our average order value increased due to selling in packs and sustaining our CPA.

The CPC for Facebook ads was ₹3, which drove a considerable amount of top-of-funnel (TOF) traffic at a lower cost.

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Lessons learnt:

Our experience provides important takeaways for e-commerce brands looking to improve their sales through Facebook ads.

- Firstly, product-market fit is crucial for the success of an e-commerce brand.
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- Secondly, gamifying the price to sell higher average order value products can be an effective strategy.
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- Thirdly, getting the basics right and leaving the d account to optimise for at least seven days can lead to better results.
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- Finally, scaling gradually is essential for maintaining control of ROI or CPA.