Nourished Essentials: 43.6% Increase in Return on Ad Spend
Discover how we scaled ad spend to new heights, achieved new levels of sales, and broke all-time profit records for this e-commerce store.
Industry
Health & Wellness Products
Tools Used
Facebook ads
Region
Based in Toronto, Canada,
with a U.S target market
Results
Here Is What You’re Going To Learn In This Case Study
Why it’s so important for e-commerce stores to diversify sales channels and avoid relying on just one channel.
Why segmentation is so important when you want to scale.
Why it’s worth using a new ad account & pixel when releasing new product lines.
Background
Nourished Essentials has a great mission… “Heal your body from within, by making empowered choices about food, drink and lifestyle. Inspired by our own journey to healing, health and wellness; we create and curate the best, tried, tested and loved health and wellness-based products”
We have a long history with Nourished Essentials. When our founders were working at a previous agency in 2017, we worked with Nourished, but we couldn’t achieve the scale they wanted. So it made total sense at that time for them to try out a few other agencies.
One year (and a few agencies later), Nourished came back. None of the other agencies could achieve the results we previously did. Within just 1 month, we scaled to $20k in ad spend. We did even better the following month. However, we hit a ceiling again and just couldn’t scale beyond $25k. We all recognized that focusing on the funnel holistically, instead of only the Facebook campaigns, would be required to grow. Limited by that agency’s specialization in Facebook ads only, Nourished left again for an agency that could optimize the whole funnel.
Lo and behold, in early 2020, with a new product line added to the brand, Nourished partnered up with us again – this time under the banner of Rocket Conversions.
During our initial conversations, we asked Nourished's founder what problems they wanted us to solve for them. Here’s what they said:
- Create a holistic marketing strategy.
- Restructure their ad campaigns.
- Help decrease the dependency on Amazon. Business owners own no data from their activities on Amazon (no emails, can’t leverage repeat business from Amazon customers, no brand building, dependent on Amazon as the only traffic source, lower margins on Amazon etc.)
Goals
Develop a holistic marketing strategy. Market the brand according to the new brand identity, and assist in implementation.
Get back to the $20k ad spend that we achieved before, then scale the campaigns to increase revenue.
Focus on ad revenue diversification. Relying on Amazon or any single platform is risky, many Amazon businesses are shut down randomly.
Provide ongoing consultation beyond just Facebook ads.
Challenges
Challenge 1
The Covid-19 pandemic shocked the world, leaving everyone facing uncertain times with “normal” consumer behavior turned upside down amid broken supply chains
Challenge 2
Campaigns had died, and we needed to restructure the whole campaign setup and ad account.
Challenge 3
Having worked in the ad account so much over the years, we had already tested a lot, so there were no “low-hanging-fruits” for easy wins. Instead, we needed a sustainable, business-wide, long-term approach towards improving results.
The takeaway here is…… scaling up is incredibly difficult sometimes. You may take two steps forward, and three steps backward.
The key to prevent it, or remedy it when you get to that stage, is to focus holistically on your business to find what is holding you back. If you want to prevent this scenario for your business, or you need help solving this, just contact us here.
Solutions
Solution 1
Holistic Marketing Strategy
It was time to upgrade Nourished’s marketing strategy and set up. In the old agency we worked at, the success of our clients was limited to the scalability of Facebook campaigns. “We can’t help you, this is out of the scope of our service” was something we frequently had to tell those clients. We left that agency to start Rocket Conversions, and to do things differently!
Solution 2
Long-term Marketing and Short-term Advertising Plan and Execution
Taking over the account for the third time, and freed from the constraints we experienced at the old agency, we developed a long-term game plan for Nourished’s brand and conversions, and a short-term solution to scale the campaigns.
Best Ads
Below are the best performing ads, measured by the volume of conversions delivered:
If you’d like to learn more about how to analyze ads & make yours convert better, feel free to
send us a message here
Takeaways
Takeaway 1
If you want to scale your business, don’t rely on just one conversion stream like Facebook campaigns. If your current strategy is purely focused on Facebook and doesn’t look beyond the platform – you’re driving your business in first gear, and you will burn out your gearbox sooner rather than later! Your advertising campaigns can only be as strong as your business itself, so pushing your business operations to the next level becomes crucial to scaling your revenue.
Takeaway 2
Turn threats into opportunities. Many advertisers decided to cut their marketing budgets as a first reaction to the pandemic. With clever marketing, the majority of our clients were able to leverage the lower competition on all the ad platforms into huge increases in revenue.
Takeaway 3
If you add a new product line to your business, consider setting up a new ad account and pixel for that line, so you can better train Facebook’s Artificial Intelligence on the specific product lines.
Takeaway 4
Segmentation: The key to scaling the campaigns here was segmentation. With surveys implemented to better understand the different reasons why people bought our products, we could craft more specific messages to more specific audiences, leading to much better results. This is a crucial element of our scaling process beyond $20k.
You Say It Best...
The results are in. Our clients report more conversions, more customer lifetime value, and more bottom-line profit.