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CASE STUDY

CHIC GLAM

BRAND STORY

Chick Glam first emerged when two college grads took the seven-day challenge to create an online store and get your first sale within one week. Obviously, they never imagined that they will reach $10,000 in sales in one month and $50,000 in 45 days! 

GOAL

For the first time ever, Chick Glam was ready to run paid ads on Facebook and had very strict demands and guidelines: focus at least 90% of the budget on prospecting (cold) traffic, and get at least a two time return on every dollar spent on ads. 

Chick Glam first emerged when two college grads took the seven-day challenge to create an online store and get your first sale within one week. Obviously, they never imagined that they will reach $10,000 in sales in one month and $50,000 in 45 days! 

For the first time ever, Chick Glam was ready to run paid ads on Facebook and had very strict demands and guidelines: focus at least 90% of the budget on prospecting (cold) traffic, and get at least a two time return on every dollar spent on ads. 

INCREASE REVENUE

200%

ROI

3.3X

INCREASE AVG.

29%

The idea of creating an exclusively online fashion store that was inspired solely by trending style on Instagram clearly was a brilliant move. In three months, the brand exceeded $200,000 in sales. Luckily for Yado, timing was more than perfect – our CFO networked in the same event with one of the Chick Glam owners and the rest is history.

During the next 12 months, Freshhoods is planning to increase their monthly advertising spend gradually so they keep up with the huge number of orders without being slammed with backorders. Having orders pour in at a rate you don’t expect is a good problem to have, but they decided to gradually increase to ensure maximum quality.

CHALLENGES

Although initially it sounded easy, one of the biggest challenges was the average order value Chick Glam had. Because of the low price tags across the site, the average order value was a little under $25. Knowing that advertising on certain platforms can be pricey, we knew that we had to be extremely accurate in our targeting and focus on increasing the average order value to allow a decent room for ad spend.

Strategy

One of our core philosophies when marketing a product or service is to examine before you act. Rushing to create without proper knowledge and background always ends badly. Initially, our goal was to discover the strengths and weaknesses of chick glam. We investigated every post they had and every important metric to learn what was preventing this idea from exploding. After 24 hours of research we found something interesting. Although this brand had amazing results with influencers, the results on Facebook Ads were really poor. One of the reasons was that ads were mostly geared to younger audiences between the ages of 16 and 24. That age group converted well with a cost per purchase of $15 or less, but they also spent very little; less than $25 on average. That meant that even with a $15 cost per acquisition, they lost $1 on average for each order through paid ads. Another important factor that was first detected by our analyst was that the women at the age of 24-35 had a much higher average order value. Their order value was $35, yet only 8% of sales belonged to that age group. 

 

Our goal was to segment the campaigns moving forward and shift more budget towards the older age group that delivered a better ROI. Our analyst team started to segment products based on age groups relevancy and our creative team created two different types of creatives for each campaign – one that would appeal to the younger core audience, and that would appeal to the most profitable age group. In addition, we wanted to see more budget shifted towards the 25-35 age group so the orders will be more diversified. 

 

Our two principles for the campaign foundation were optimizing by value instead of by conversions and using campaign budget optimization to segment the age groups. Value optimization was used not just to simply target people who are likely to purchase but to target the ones who are likely to produce the highest return on investment. Using campaign budget optimization allowed us to use the algorithm to navigate between the best opportunities and maximize the performance of the entire campaign. Segmenting the age groups into two different ad sets allowed us to manipulate spend and delivery between age groups, but more importantly how much to bid on each age group. Then, we could bid a lower amount on the youngest age group, and a higher bid on the 24-35 age group knowing they will result in a better ROI. 

We systematically tested more than 150 different combinations of copy and creatives until we found the winners for each audience. Then it was a matter of fine-tuning the products in the ads to the most relevant audience while using the best practices to leverage data from the Facebook pixel optimization, and elevate our performance. Last, we created a campaign flow that allowed us to introduce new arrivals ads weekly while circling back to the best performance and scaling winners weekly.

 

Fast forward to six months later – we exceeded the initial goal of 2X ROI and hit a strong 3.3X ROI strictly based on the reports from ad manager. That doesn’t account for unattributed sales, future repeat sales from existing customers, organic reach from sharing the ad posts and more. 

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