How We Scaled a Print on Demand T-shirt Brand From Negative ROI to $15K-$17K/day in Revenue
Teepinch is a print on demand apparel brand that sells family t-shirts and jumpers in the US and Canadian markets. They sell matching apparel to families that create memories of a lifetime for them. The owner, Nick Fiorante, approached us as he was struggling to scale his Facebook ads himself. Results were inconsistent and he wasn’t meeting his target ROAS. (Return On Ad Spend) Couple that with the demands of growing a brand, hiring staff, managing fulfilment, etc. it left little time for him to focus on scaling his account whilst growing his eCommerce brand.
Using our 3 step eCommerce scaling process, we scaled his ads and revenue whilst freeing up his time and bandwidth from the day to day ad buying.
Step 1: Analyze
When we took over the account, we saw a lot of disorganization and the lack of a clear account structure. No exclusions of audiences in different ad sets were present, which caused the data to be skewed in certain campaigns.
There weren’t any systematic methods present to test different t-shirt and jumper designs, which meant a lot of potential popular designs went untested. There was a significant underspend on retargeting, thus there were a lot of missed sales by not frequently retargeting site visitors and cart abandoners. In addition, we saw that no rules set on the account – this caused overspending on ads below target ROAS.
Overall, a lot of missed opportunities
Step 2: Strategize
After we diagnosed the issues in the analyze phase, we aimed to fix them in the following way:
The first thing we used, was a creative testing process designed to discover winning creatives. The creative and offer are some of the most important factors to make Facebook ads convert. We advised the client to provide us with as many different images and videos for each holiday period.
We tested different creatives for each holiday period. Once we found winners, we aimed to scale them whilst maintaining our target ROAS. Since our offers were holiday-specific, this helped to drive urgency within our ads. We could emphasize final shipping dates in the copy to encourage customers to take action ASAP.
Whilst developing the campaign strategy, we needed to overcome one of the biggest bottlenecks Teepinch had when it came to scaling – the t-shirts are priced on average at just $21. After COGS (Cost Of Goods Sold), processing fees and other variable costs – it left little margin to scale. Winning on discounts or price wouldn’t suffice.
Therefore, we decided to focus on bundles and win on AOV (Average Order Value). The t-shirts are bundled so mothers bought 1 for the son and one for the father. A mother would need two to enjoy the full experience on Father’s day – resulting in better customer experience for them and more margin to scale for us.
Here are some examples of ads that helped us scale during this period
Step 3: Optimize & Scale
The Father’s Day holiday performed best for us, allowing us to scale to $15K-$17K/day in revenue the week before.
Below Here are the following optimization and scaling strategies that scale to $5,000/day in spend at 3X ROAS:
SCALING STRATEGY 1 – LOOKALIKE EXPANSION
One way to scale is to launch more ad-sets and have more ad-sets running at the same time. In this account, we had a bunch of lookalike audiences that were already proven to be profitable. We then expand these lookalikes by creating all the ranges – 1%-2%, 2%-3%, 3%-4%, 4%-5% etc. These lookalikes all go in their own separate ad-sets. We used our automated rules to cut the ad-sets that performed below target and scale up further the ones that were above our target ROAS.
SCALING STRATEGY 2 – MANUAL BID TESTING
Manual bidding is a great cost control tool. It helps control cost per conversion the same way budgets help control your spend. With auto bidding, Facebook can bid any conversion value – even if it means going after the most expensive conversions. But with manual (bid cap), you tell Facebook NOT to bid above a certain amount in an auction.
When we find ad-sets that are profitable for a consistent period of time and spend, we test switching over to manual bidding. For us, if an ad-set is profitable for 3 consecutive days AND is above target ROAS, we’ll switch it over to MB. We’ll use a high daily budget and we’ll test at least many different bids which are 0.5x, 1x, 1.5x, 2x and up to 20x target CPA (Cost Per Acquisition). In our testing, a $30 bid cap was performing the best, so we scaled the ad-spend on this bid.
SCALING STRATEGY 3 – PRODUCT SPECIFIC LOOKALIKES AND CREATIVES
For lookalike audiences, we’ve found seed audience quality is more important than the seed audience size. If you have a store with hundreds of different products for different audiences, you can create custom audiences on Facebook of people that have purchased a specific category/product.
In this case, we set up Purchase, ATC and VC custom audiences. We segmented them by individual products (focusing on the top 3 bestsellers) and created the lookalikes from these seed audiences. The next step was to ensure that the ad creative showed the same product that we built the lookalike audience from. For example, if we have creative X (which shows a specific product), we’ll match that with a product-specific lookalike (audience of people who bought that SAME product). These audiences allowed us to scale to over $5K/day spend at 3x ROAS.
RETARGETING STRATEGIES TO MAXIMISE THE VALUE OF OUR AUDIENCES
Converting your past site visitors is critical in achieving a healthy ROAS at scale. Without a proper retargeting funnel in place, it would be impossible to achieve. Here are our top retargeting strategies that brought in 3.5X ROAS and above.
When running ads at scale, we quickly build up large remarketing audiences. These audiences will have interacted with our ads in some way (watched a video, commented, shared etc.) or visited our website and performed some actions.
We built up our retargeting custom audiences and used dynamic product ads alongside normal website conversion campaigns. The screenshot below shows the retargeting funnel we used. As you can see, dialling in your retargeting is crucial to increasing your account ROAS and converting potential customers who are on the fence.
Overall, the campaign brought consistent sales and helped Teepinch grow as a brand. Not only did they achieve the highest daily sales on their store, but also they gained valuable customers they can remarket to and maximize customer LTV. They hired extra staff to cover the fulfilment and the time freed up helped Nick the owner focus on working on his business – not in.
If you’d like to achieve similar results for your brand, why not get in touch? If your brand qualifies, we’ll be able to go through the initial analyze phase for you through an account audit. It’s completely free and if you like our suggestions and want to move forward, we may invite you to become a client.
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