Ecomtrics

Introduction

Floris Zwolsman and Robin de Boer are two successful Dutch eCommerce entrepreneurs. They wanted to share their success and help other aspiring entrepreneurs break from the 9-5 and start their own eCommerce business. They packaged their expertise into an online course for the Dutch-speaking market and wrote a webinar to convert and enrol students.

Floris and Robin are extremely competent and skilled Facebook media buyers. However, they run multiple businesses and they had no time anymore to focus on scaling their Facebook ads. After going through a rough experience with another agency, they got in touch for us to take over and scale their Facebook ads. Within two months we scaled up to over $100K/mo in revenue in Netherlands and Belgium alone at above a 2 ROAS – which is very profitable for their digital product.

Ecomtrics Facebook Ads Results

I’m going to reveal our strategy behind how we scaled the revenue of this high ticket course. Since this is a digital product, the margins are almost 100% except for small costs like:

1) An Everwebinar subscription

2) Stripe/Paypal payment processing fees

3) Clickfunnels subscription fees

4) Our agency fee

Step 1: Analyze

The first step was to look at the account and analyze the historical data. We analyzed the full sales funnel and then from this, we figured out the bottlenecks hurting ROAS and preventing scale.

The full webinar funnel works like this:

Facebook Ad > Webinar Registration Page > Thank You Page > Auto Webinar / Replay Page > Sales Page > Order Form > Customer.

During the initial analyze phase, we uncovered the following bottlenecks that were hurting performance from their previous agency

1) Reach campaigns used instead of conversions. This caused a lower ROAS than needed. We almost always get the best results with Conversion Campaigns optimized for Purchase.

2) Pixel turned off on many ads. The FB pixel is turned off by default on non-conversion campaigns. It should always be on to ensure conversions are tracked. Since it was uncertain what the results were for these campaigns, they couldn’t be scaled.

3) Overspending on ads with no sales. Multiple ads with spend > €600 and no sales and overspending on ads or with sales with ROAS below target. Clear ROAS and cut off-targets should have been set and combined with automated rules to improve ROAS. The account was not frequently monitored which also led to wasted budget.

4) Messy account structure with lots of audience testing, but no creative testing. Since they were only targeting the Netherlands and Belgium, there weren’t many differences in the interests to target the business opportunity market. Many of the audiences were similar and the greatest lever instead to pull was creative – which was not tested enough prior to us taking over the account.

These were some of the initial bottlenecks we uncovered during the analyze phase.

Step 2: Strategize

After we took over and analyzed the account, we implemented the following account structure as part of our campaign strategy.

Campaign 1: Creative Testing – Conversions

Campaign 2: Prospecting – Conversions

Campaign 3: Warm Retargeting – Conversions (ad/post engagers + video viewers + site visitors + registration page visitors)

Campaign 4: Hot Retargeting – Conversions (missed webinar / sales page visits / ATC + IC)

This allowed us to develop a full-funnel account structure, and thus target people at all stages of the customer journey. The initial step to generate sales was to get qualified registrants to opt-in and register for the webinar. Through creative testing and analysis, we found that video creative with a very compelling hook (showing live dashboards, ad accounts, etc.) performed best.

In this particular industry, it’s riddled with claims and gurus. So it’s very important to differentiate and show legitimacy and establish trust straight away. Facebook compliance made it tough to get ads approved in the business opportunity space. We aimed to be on the knife’s edge and try to show as many income claims as possible – without getting disapproved. We used a separate creative testing campaign to test new creatives on. If they converted above target ROAS or their leading indicators are within KPI, then we duplicate them into our main prospecting campaign at higher budgets.

Here are some examples of the ads:

Step 3: Optimize & Scale

With more data and spend on the account, we could now set benchmarks to generate cheap registrants that also buy. Cheap registrants don’t always convert into profitable sales, and since it takes time for a registrant to convert into a sale and the average time to conversion is 5 days – it’s important that we viewed all metrics of the funnel on ads manager and work backwards.

ROAS more than doubles from a 1 day click and view to a 28-day click 1-day view window. So we created custom conversions and put them side by side on our reporting. That way we could easily view the full funnel and observe the traffic passing through each stage.

– Amount Spent
– Purchase Conversion Value
– Purchase ROAS
– Webinar Landing Page Visit
– Cost Per Webinar Landing Page Visit
– Webinar Registration
– Cost Per Webinar Registration
– Webinar Live Attendant
– Cost Per Webinar
– Live Attendant
– Sales Page Visits
– Cost Per Sales Page Visit
– ATC
– Cost per ATC
– IC Cost per IC
– Purchases

Here’s a dilemma that a lot of higher AOV product sellers face. Often their products have a long average time to conversion, so it’s risky to keep spending only to find out that purchases don’t back out. If you’re getting cheap registrations for your webinar – but they aren’t converting on the offer you’re losing money.

So after we got enough data on the account, we ran a correlation calculation across our funnel. We calculated that cost per unique registration on a 1-day click attribution window correlates almost as much to ROAS as cost per unique add to cart. This means that for our ads above target ROAS, as cost per unique webinar registration decreases, we’re confident that ROAS will increase. And since it would require less spend to test registrations (rather than spend and wait for people to watch the webinar and then click add to cart), we decided to base our initial benchmarks on these.

We applied automated rules based on our ratio of unique webinar registrants to sales and kept a close eye on the ROAS of those ad sets to see if those registrants convert. If we cut too early and the ad set was at profitable ROAS (due to delayed attribution or delayed reporting), we use the safety net rule to automatically restart paused ad sets/ads so they continue to generate sales and profit.

Here’s our strategy for retargeting. Since this is a high-ticket product with a 5-day average to convert customers. There will be many questions and objections that would need to handle be to convert those on the fence. This is where our retargeting campaigns come in, which were at over 12 ROAS.

Disclaimer: It’s slightly positively skewed, as Facebook’s reporting does take credit from Youtube ads retargeting, but it’s still performing far above expectations.

We segmented our retargeting based on the stage of the customer journey. With a webinar funnel, there will be people who:

a) Have visited the registration page but didn’t opt-in

b) Registered, went through the webinar

c) Those who added to cart but didn’t buy

These different audiences have different objections on why they didn’t convert. So it’s important to tailor your messaging accordingly. Here are two examples we used for retargeting which you can try out:

1. Retarget with testimonials from your current customers

Explain their situation before buying, and explain their situation after buying. Some people are more skeptical and on the fence, so we retargeted them with ads inviting them onto a strategy session. Here, they can talk with a salesperson to learn more about the course and sign up on the phone.

2. Introduce a solid guarantee + offer.

Again this is an industry full of gurus, so what we did was offer a 14-day money-back guarantee + discount to convert those who were on the fence.

Conclusion

Overall, our 3 step scaling process helped NLC scale their business to over $100K/mo at a healthy profit. We were able to remove Floris and Robin from the day to day media buying, thus helping them focus on growing their brand – and not remain stuck working in their business. We helped enroll more students and give aspiring eCommerce entrepreneurs the education needed to start their own business.

Enjoyed the case study? We hope you found it valuable and insightful enough to scale your ads. If you’d like to scale your Facebook ads, increase your revenue and start working ON your business.

(Rather than you or your team stuck in the day to day ad buying)

Why not hop on a call with us and we can see if we can help scale your brand?

We offer free Facebook ad account audits for brands that are looking to scale. It’s guaranteed to unlock scale in your account and plug the leaks that are hurting your account ROAS. Interested? Click here to book your free Facebook ads audit call here