Offer change can make a massive difference in maximizing the efficiency of your FB ads We turned around this client’s frontend profitability by 3x just by a simple offer change & introducing bundles Here's our complete step-by-step process: [Replicate it for your store]
The potential client reached out to us a few months ago, mid of October They are in the skincare industry, and they had some serious issues with their AOV Actually, the relationship of CPA to AOV Their LTV was decent, but they were losing a lot of money on the frontend
Something needed to be changed, especially considering they were entering Q4 When you combine usually higher CPMs for the skincare industry and even higher CPMs during Q4, they were looking at their cost going up Which would result in a disaster So, we acted quickly
Although Q4 is not an ideal time for testing the offer, we didn't want to discount so we introduced bundle offers By bundling the products we counted on increasing the AOV + the discount there is not hurting them (and their margins) so much as it would do 30-40% sitewide
So we combined a few bundles 1) A hero product combined with another product This is a great way for people interested in one of the products to test another product and potentially start using it on a regular basis.
2) A hero product with a 2-4 months supply This is a great way for people to stock up on the product they are already super interested We created variations of 2, 3, and 4 months' supply and used price anchoring to get them to buy the largest bundle
3) Products they want to clear In order to make this offer interesting, we needed to offer a larger discount than on the other bundles
Additional TIP: include small samples of a few different products on top of that user bought → user gets pleasantly surprised → you get customers potentially hooked on another product
Results & next steps: The overall best-seller was the Bundle with a hero product and a few month supply. As expected, price anchoring worked so people were more likely to buy a 4-months supply as it had a higher discount and it looked like an irresistible and no-brainer offer.
Worked like a charm on paid social. Next step: Keep this bundle on the website as part of the regular offer, but with a smaller discount
Bundles with the product to clear had okay results, but more from the owned audiences, not so great on the paid social side It was hard to get this product profitable considering the big discount we offered Next step: Leave this bundle on the website, but don’t run any ads
If you are spending at least 30k on FB ads a month and you want a custom approach to your store, book a call below, and let's skyrocket your business: https://calendly.com/marin-ist...
@IstvanicMarin What bundling app did you use for this?
@IstvanicMarin Most people focus on effectiveness as the key solution, especially when changing offers; the assumption is that it would increase the number of customers. Can you elaborate on why you think efficiency takes precedence here?
@George_Carpusor if you spend $1 and get $3 or you $5 back, which one would you take? Probably $5, right? Why? Cause the offer is more effective
@IstvanicMarin @threadreaderapp unroll