Stats:
Revenue 559k EUR
Ad spend: 65k EUR
ROAS: x8.6
When we started working on this store, they had only two products and very low sales. They had tried running Facebook ads themselves and had a couple of sales here and there, but eventually it became unprofitable.
Our strategy was to analyze their ad account and find some low-hanging fruits so we could quickly recover a positive ROI. Within a week, we were already spending hundreds on ads daily profitably, even without changing the creatives.
It was October, so we had to prepare the store for the Q4 season very fast. We created special offers for BFCM and Christmas sales and crafted ads. They were very successful as the product is highly giftable.
After the new year, we expected a sales drop, but ads surprisingly performed well until April. That's when our ROAS and profitability started dropping rapidly.
As we know, when times are tough, we need to double down on testing, and that's what we did. We also worked on adding new products and increasing website AOV by offering pre- and post-purchase upsells (the pre-purchase upsell had a staggering 70% conversion rate!).
And it worked.
In June, our sales started growing, and we had a very profitable Q3 and Q4.
The key takeaway from this case study is to always think about how to increase your AOV by offering upsells and bundles. This can transform unprofitable ads into profitable ones.