NOVEMBER
25th
Sanfe
How we scaled a leading UK-based Wall Art brand from £20K revenue to £75K in 3 months
How server based custom event helped to reduce NCAC by 24%, 26% and 34% respectively in mutiple ad accounts with different SKUs and different AOV products of a skincare brand.
About the
Brand Products
01.
Under Eye Gel Serum
02.
Lubricating Eye Drops
03.
Healthy Vision Supplements
04.
Anti Ageing Supplements
05.
Eye Lid Wipes
06.
Kids Eye Vitamin Gummies
Problem
Our skincare brand invests between 4 to 5 lakhs per day in advertising. We understand that our brand’s success relies heavily on acquiring new customers. Therefore, reducing the cost of acquiring new customers (NCAC) is a top priority for us.
However, despite our efforts, we faced a significant challenge. We lacked visibility into which ads, campaigns, or ad sets were performing better or worse in terms of NCAC. Additionally, we couldn’t determine which campaigns, ads, or ad sets were bringing in more repeat customers compared to new ones.
This lack of insight was especially frustrating because our dashboard showed an attractive Return on Advertising Spend (ROAS). While the ROAS looked promising, it didn’t provide us with the detailed information we needed to understand the dynamics of customer acquisition and retention
Solutions
To address our challenge, we decided to implement a server-side custom conversion event, known as CAPI (Conversions API).
Here’s how it worked: Whenever a new customer made a purchase through the pixel, the CAPI would trigger and record the relevant data. Since we opted for CAPI, we knew the data collected would be highly accurate.
After the implementation, we were able to track important metrics such as:
01.
New Customer Purchase
02.
Cost per new customer (NCAC)
03.
New customer revenue contribution
04.
Repeat Purchase
05.
Cost per Repeat purchase
06.
Repeat Customer revenue contribution
Optimization
01. We shifted our focus from optimizing for Return on Advertising Spend (ROAS) to optimizing for New Customer Acquisition Cost (nCAC) directly on the dashboard.
Explanation:
Rather than solely prioritizing ROAS, which measures the revenue generated from advertising relative to the cost, we began concentrating on nCAC. This shift allowed us to specifically target and assess the effectiveness of our efforts in acquiring new customers. By optimizing for nCAC on the dashboard, we gained a clearer understanding of the actual cost associated with acquiring each new customer, enabling us to make more informed decisions to enhance our customer acquisition.
02. We’ve set specific targets for our maximum New Customer Acquisition Cost (NCAC) at 250, 300, and 360. Any ad exceeding these benchmarks is optimized to lower the cost, unless it’s generating a high volume of conversions and significantly contributing to acquiring new customers. This way, we ensure efficient spending while also considering the overall performance and contribution of each ad to new customer acquisition.
03. We began focusing our ad optimization efforts on New Customer Contribution, even though our Return on Advertising Spend (ROAS) was higher than the account average. Despite the seemingly positive ROAS, we discovered a different story when we looked at New Customer Contribution and New Customer Acquisition Cost (NCAC).
For Example :
Account Average
04. Focusing on New Customer Acquisition Cost (NCAC) makes managing multiple Facebook ad accounts and pages easier. When we focus on NCAC, we can see which ads and pages are best at bringing in new customers. This helps us spend our money wisely by putting it where it brings in the most new customers. Also, NCAC N helps us figure out which strategies work best so we can use them in other ad accounts and pages. By keeping an eye on NCAC, we can track how well our ads are doing and make changes to make them work even better. In the end, focusing on NCAC helps us grow our business on Facebook by getting more new customers at the best cost across all our ad accounts and pages.
Results
1. Taking 1st Ad account into consideration
(Our bestseller product is in this account
75% increase in New Customer
Impact on Cost Per New Custome
75% increase in New Customer
2. Taking 2nd Ad account into consideration
44% increase in New Customer Purchase
Impact on Cost Per New Custome
26% decrease in NCAC
3. Taking Third account into consideration
75% increase in New Customer Purchase
Impact on Cost Per New Custome
24% decrease in NCAC
Best Performing Creatives
Conclusion
New Focus:
We shifted our attention from one metric (ROAS) to another (nCAC) on the dashboard. This change helped us understand how much it costs to get new customers better.
Better Tracking
By using CAPI, we made sure our data was more accurate, which was important because tracking became harder after iOS 14. Learning from Results
Smart Decisions:
Now that we can see which ads work best and how much they cost to get new customers, we can make smarter decisions about where to spend our advertising budget.
Always Learning:
This experience showed us the importance of always adapting and improving our digital marketing strategies to keep up with changes in the industry
How creative theme analysis helped reduce CAC of HPS 13% and improve conversion rate by 15%
Boosting Brand Revenue
by 40% with New Customer
Purchase Optimization
Boosting Brand Revenue
by 40% with New Customer
Purchase Optimization
