Facebook advertising strategies are not one-size-fits-all. Because of the very specialized niche involved and the monthly subscription aspect to this campaign, we knew that we had to build the right framework for this business to compete in the monthly subscription ecommerce space. 

Prior to reaching out to our team of experts, LWL had been operating for about 2 years and felt ready for substantial growth. The owner and founder had dabbled with Facebook ads very briefly before but didn’t know how to effectively run FB ads. FB ad manager was SUPER confusing for this ecommerce biz owner, which is not uncommon since it’s a very complicated platform. She quickly realized she needed an expert team to help create a killer strategy and manage the campaign in its entirety. While it is possible for someone with no Facebook experience to run ads, it’s quite challenging for anyone not well-versed in FB ads to create a successful campaign from scratch. Scaling a campaign up and allowing room for growth is another piece of the puzzle that is best left in the hands of FB ad experts! 

The owner of this biz felt stuck. She couldn’t grow her promising business like she wanted to without doing more in terms of digital marketing. Influencer marketing had been working well for building up her business, but she had reached a plateau where she knew she needed to be doing more to take her business from feeling like a very involved hobby, to her dream of it being a full-time and thriving business.

When LWL brought our reputable team of experts on board to manage their campaign, they trusted that we would know how to build them the right type of strategy for subscription-based ecommerce businesses right from the beginning. 

One of the first key aspects to the new campaign was creating an irresistible promo for first time customers: JUST $10 for the first month. This type of offer is SO appealing to your target audience customers and removes any barriers to entry for new customers. Don’t underestimate the power of a good promo. 

Most of the time, promotions that are at least 15% off can be a game changer for bringing in new customers. This is because first-time customers in particular are always the most difficult and expensive to convert for any business. After someone makes a first purchase, additional sales down the line are much easier because trust has been established; past customers don’t really need as much of an incentive to purchase as brand new customers do.

PRO TIP: If you're running ads for an ecommerce store and struggling to get new customers in the door, start testing first-time customer promotions! We recommend no less than 15% off, if you want to try a percentage off. Alternatively, you could test a dollar amount off, typically no less than $10 off. Other ideas include: buy one get one free, buy one get one half off, free-trials, a free item with any order, or free shipping. In addition to testing a first-time customer promotion, make sure to test MORE than just one promotion in order to find the most successful one for your target audience.

After launching this specially crafted campaign, we got the immediate ROAS over 3, which was incredible considering we were aiming for just a 1 ROAS immediately. While that 3+ ROAS was amazing in itself, the long term ROAS was 12+! This double digit ROAS is calculated by taking into account the average amount of time someone remains a subscriber and thus how much revenue a new customer will ultimately bring in over the lifetime of them being a subscriber. 

Let's break down some of these amazing results a little bit further, shall we? In just a few short months of running ads for this subscription business, we've generated a 10.99 projected ROAS.

Want to know exactly how we got these figures? 

$4,115.86 in ad spend

$8,887.40 immediate revenue

525 purchases=

10.99 projected lifetime revenue: (525 purchases x LTV of $86.19 = $45,249.75. We then take $45,249.75 in projected revenue divided by $8,887.40 in ad spend = 10.99 ROAS). 

In other words, with every new subscriber, that new subscriber will bring in $86.19 in revenue during the lifetime of them being a subscriber. This is an AMAZING lifetime projected revenue and a result that we are all thrilled with! 

As we anticipated, this subscription business is continuing to grow substantially, as they now have the correct framework in place to do so; they just needed the right advertisers to help them with a killer ecomm strategy and campaign.  Shortly after launching their new campaign with TDM, this client’s business grew so much that she had to find full manufacturers due to growing out of her wholesale suppliers. This was new and sudden territory but also VERY exciting as it means her business is experiencing the growth and success that both she and our team were hoping for!