Details
Update for 2024:
Case Study: 7x ROAS for $8k ad spend in 2023 for a micro launch while doubling profit year over year
- Knowing your best customers so you focus on quality over quantity
- Better results year over year
- Increase in profit margins
Are these things you associate with paid ads as of late?
Word on the street is Facebook & Instagram ads have gotten more expensive, harder to track and there’s more competition than ever in 2023.
Is that True or False?
It’s 100% true!
However, that doesn’t mean you can’t get better results than you did a year ago.
The key however is an ad strategy that identifies your best customers and focuses on identifying them, welcoming them into your world, and then transforming them into customers.
Quality over quantity is the key to success at every stage of business.
Here’s a quick example:
In July 2022 we ran a micro launch for the same product we ran a micro launch for in July 2021.
Same launch runway but different ads, ad copy, etc.
The Results:
July 2022: Ad spend of $20k and revenue of $71,000 (a 3.5 ROAS)
July 2023: Ad spend of $8k and revenue of $74,000 (an 8x ROAS!)
The Goal:
We ran this micro launch as a preface to a larger launch coming in October 2023.
Based on the customer journey analysis we did for this client we know that if someone buys this specific product first then they are very likely to buy the next product (which is $3k)
In fact, during the last launch over 60% of the purchasers of this $3k product came bought product #1.
For this client we are aiming for a 7 figure (or more!) launch in October and are laying the groundwork for that now.
So, how is it possible to get better results now even with a harder environment?
Well, it’s a little thing we like to call the Have Them At Hello Method combined with our 401k Snowball strategy.
I’m breaking it all down here so that you too can learn how to, too.
We’ve worked with this client for over a year which has allowed us to evaluate their best lead sources.
We analyzed the buyers of their premium product and asked these questions:
- Is it a free lead magnet?
- Is it a specific product purchaser?
- How long has this person been on their list?
- How fast can we activate them with the Have Them At Hello method to move them to purchase faster?
We realized that our focus was on bringing people in through an epic lead magnet, followed by a path to purchase product #1 within 90 days, and then 60% of those people buy the next product.
So, we worked backward from the launch date to start to bring in the right amount of quality leads that we know will convert the highest come the next launch.
This allows us to save massively on ad spend throughout the year.
It also increases profits as this micro launch is an example of.
This allows us to invest our ad dollars into hyper-qualifying this person (getting them to want to buy from no one else) instead of focusing on the quantity that isn’t as invested in buying from this person (brand).
Interested in knowing your best customers & automating this process with ads?
When you choose to invest in your customer this way the profit always comes back to you.
If you want to:
- identify your highest-quality leads
- their ideal path to purchase
- increase your profit margins
Want to learn how to do this yourself? Just watch our free 30-minute training here.
Your future self (and business) will thank you!
