Case Study: Supplement Business

In a span of just 45 days, a health supplement company revolutionized its profitability without resorting to an escalation in Facebook or Google advertising expenditure.

The conventional reliance on these platforms for daily customer acquisition often faces limitations, leading to a point where return on investment (ROI) stagnates or plateaus.

Recognizing the inherent constraints within the closed ecosystems of Facebook and Google, the company strategically navigated beyond these confines, uncovering secrets that propelled its ROI to unprecedented levels.

The reliance on generating sales while people scroll through social media presents its own set of challenges. Once they divert their attention elsewhere, your brand fades from their thoughts until they resume browsing their newsfeed.

This poses limitations on effective re-targeting efforts, making it challenging to create multiple custom audiences that yield a substantial return on ad spend.

Beyond the Facebook universe, your prime prospects are actively exploring, conducting research, and evaluating diverse solutions to address their concerns. This vast expanse constitutes 95% of the internet, and the buying intent is equally, if not more, significant here.

To illustrate the potential of an already successful sales funnel in the supplement industry, let's delve into recent results achieved by one of our clients.

Similar to many successful vendors in the industry, their initial strategy boasted high margins, a free trial offer, and a commendable ROI of $1.10 for every $1 spent on Facebook. While retargeting yielded $1.30 for every $1 spent, Adwords/Bing showed slightly better results with a higher cost. However, as they aspired to expand, their once thriving $40k/month ad budget faced a plateau. Despite numerous efforts, the challenge persisted in finding the optimal balance between increased spending and enhanced returns.

Upon scrutinizing their funnel, our team identified areas for improvement. The pain points weren't adequately emphasized, weakening the solution pitch. The calls-to-action (CTAs) lacked strength, and the mobile design needed a simpler, cleaner approach. Within seven days, we overhauled the copy, enhanced the design for visual appeal, and crafted more enticing CTAs tailored to the target market.

A closer examination of the lifetime value of each client revealed room for improvement. Shifting from a singular upsell to a dynamic three-step one-time offer sequence resulted in an impressive 76% increase in their average order volume, soaring from $120/sale to $212/sale. However, the real catalyst for accelerated growth lay in reallocating approximately 33% of their existing Facebook spend ($15k) to leverage big data and premium ad inventory in our specialized domain.

We harnessed the data from their existing buyers to swiftly construct a robust custom audience. Each click on our ads provided an additional 15,000 data points, a significant leap compared to Facebook's meager 500. This abundance of data empowered us to execute various strategies with lookalike audiences.

By the 30-day mark, we had directed a substantial volume of traffic to the lookalike audiences, effectively filtering out a majority of prospects who were not a suitable fit or were no longer in the market. This precision was achieved by aligning our data with 3rd party data. As we consistently accumulate more data points from an already near-perfect audience, we've been able to scale up the ad budget without experiencing any drop-off in performance.

Remarkably, at the time of writing, this campaign continues to enhance its profitability. Our clients are refining their back-end processes, and increased investments in our traffic are driving down the average cost per click (CPC), contributing to the sustained success of the campaign.

Their prosperity is attributed to their innovative traffic-driving approach with our technology: They strategically deploy highly targeted ads to their audience a mere 400 milliseconds after prospects display buyer intent through relevant Google searches, a tactic known as "grapeshotting," where real-time browsing habits are leveraged to display ads.

These ads exclusively appear on exceptionally pertinent websites within their niche, ensuring that their prime prospects aren't confronted with supplement pitches amidst unrelated content, like news about the aftermath of Hurricane Maria on the NY Times.

Furthermore, all clicks generated from Facebook are retargeted beyond the confines of Facebook's closed garden. This ensures they remain at the forefront of their prospects' minds throughout the entire buying process. Notably, incorporating retargeting beyond Facebook has elevated their return on investment (ROI) from $1.30 to an impressive $2.50.

Following a 45-day run of our initial 1 million impressions campaign, we acquired the necessary metrics and audience data to effortlessly scale it up by fivefold. This expansion occurred seamlessly, eliminating the need for additional campaign setups, the creation of new ads, or the risk of investing in uncertain audience segments that may not guarantee conversion.

As our client ventures into introducing new products and exploring different geographic locations, they can confidently double or triple their traffic without experiencing any decline in performance. This scalability ensures a flexible and sustainable approach to accommodate future growth initiatives.