Double your ROAS with a BOGO offer NOW (Case Study)
Nowadays is the period of very contradictory Facebook advertising…
While SOOO many businesses die out due to lack of flexibility and resources to handle the changes, most of my clients make hundreds of sales every day EASILY (I’m sure you’ve seen this in my recent videos).
The question is – what is the difference between those 2 categories? The answer is hidden in the previous sentence – flexibility – ability to adapt to changes and actually manage to use them to your advantage!
Today, I’m gonna tell you a PROVEN method to boost your sales for a considerable period and adapt to the changes – a “buy one get one” or “BOGO” offer.
Below I’ll be discussing 2 things:
1. How we turned things around on one account by adding BOGO on cold ads (1.5 -> 2.6 ROAS in a few days).
2. How you can do that yourself EASILY.
Beauty product CASE STUDY:
Step 1: detecting the core of the problem
– Finnish cosmetics for women
– BEP – ~1.7 ROAS
– Targeted countries: Finland and Sweden (small markets)
– Initial problem: ROAS went down after covid-19 issues had occurred
– Proposed solution: make a more appealing offer to bring back buyers
(25 March 2020, sorted by amount spent, campaign level)
So, as seen above, we went down below BEP (~2.0 ROAS before that) due to the pandemic.
Most of the KPIs became poorer, which meant lack of appeal from the clients’ side as the ads did not change much.
The situation required drastic changes, so I offered introducing a BOGO offer in cold campaigns, which would allow to:
– get much more new buyers that would be offering more in future (it’s a high-quality Finnish product)
– push from stock unneeded item – clay mask in this case that was not selling at all and it’s production cost was very low
– boost ROAS, as the offer would become much more appealing
– stand out over competitors and gain people’s trust
The offer included the best-selling item (serum) + the cheapest item on stock (clay mask).
The breakeven point went up to only 1.85 (from 1.7).
(26 March 2020, sorted by amount spent, campaign level)
Just one day after making the offer live, we’ve increased ROAS by almost 1 point – from 1.5 to 2.5!
The results were just great:
– we went back up to being profitable (significant profit)
– started spending even more/day (~1,800 euro/day -> ~2,500 euro/day)
– the cold traffic actually was doing better than HOT traffic
(26-31 March 2020, sorted by amount spent, campaign level)
So, we kept on pushing the offer as hard as the stock and market (small markets – Finland and Sweden) allowed till the end of the month while remaining highly profitable (~2.35 ROAS)
At that point, we were that aggressive that ~95% of traffic was cold traffic (have never seen our ads before)
However, aggressive offers cannot be sustainable for a long period of time – it’s just that you need to know when to stop.
The offer, at one point, became not that appealing as we couldn’t find new cold traffic given the limitations of Finnish and Swedish markets in terms of # of Facebook users.
We’ve been running the cold BOGO campaigns till 10th of April, during which:
– we’ve acquired ~1,500 NEW buyers
– Stood at a comfortable 2.0 ROAS overall (with 1.85 BEP)
Now, we could retarget all these buyers with our new products/other old products/new offers/same products.
Once we say that the daily ROAS went down to 1.7, we’ve decided to turn off the cold BOGO campaigns.
(2-9 April 2020, sorted by amount spent, campaign level)
Instead, we just moved the BOGO ads to RETARGETING so that we could show them again to those people who:
– haven’t bought it yet but already saw the ad OR
– bought and wanna buy again.
At that point, we went back to a standard 70/30 budget split between cold and warm/hot campaigns.
We will be running the BOGO ads on retargeting till the end of the month, presumably, and then turn it off again, to repeat the whole process 1 month after.
(11-14 April 2020, sorted by amount spent, campaign level)
Having moved the offer to retargeting, we’ve immediately gone back to highly profitable results (~2.2 ROAS, with BEP 1.7).
(11-14 April 2020, sorted by amount spent, ad set level)
The retargeting setup was very simple:
– Facebook (you can add IG if you have a lot of good traffic there) post engagements
– Those who initiated checkouts
How you can do that YOURSELF:
1. Determine your bestseller + a cheap product that you can offer with the bestseller as a BOGO.
2. Make simple ads with the main angle being the OFFER itself…We recommend this structure:
a. Offer itself in the headline (name the current price and the price without discount)
b. Add delivery straight to mailbox in description (works very well atm)
c. For ad copy, from top to bottom, 1 testimonial (don’t use 5-star emoji) -> short product description -> 3-4 usp’s (unique selling points) -> BOGO offer conditions -> bit ly link (or your link if it’s short)
3. Run aggressive cold BOGO campaigns as long as they are over BEP – generate as many new buyers as you can.
4. Turn off BOGO campaigns on cold and turn them on on retargeting:
a. for post engagements
b. added to cart or initiated checkout but didn’t buy
c. bought a product within the past 7-30-60 days
d. winback (have bought from you more than 180 d ago last time)
5. Make the most out of it -> turn off BOGO campaigns on retargeting as well after a few weeks.
6. Repeat the same in 1 month.
AND remember to stay at home and wash your hands! Let’s make this work together!!!