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Our client is Native Supply, a Christian clothing brand for a popular rapper. We’ve been working with them since December 2019 and have been able to build a great relationship with them. They trusted us to get results, and we were determined to deliver.
This client wanted to increase their sales. Because of fluctuations in inventory, we were able to target a big challenge to effectively scaling and managing performance. Our client expects us to stay on top of their 4 traffic channels and do what's needed to scale, which sometimes means dropping the budgets by 50% or more to keep up with inventory and demand.
We identified two clear challenges to achieving consistent, high ROAS sales.
1. Whenever inventory went below 20-25 products in stock we saw a dramatic decrease in ROAS down to around 1x ROAS, well below our target ROAS.
2. Because some products sold out quickly, we kept seeing comments from customers about products being sold out on static ads (ads that show the same image to everyone).
This showed us that we needed to figure out a few workarounds to prevent displaying static ads for sold out products and find a way around low ROAS due to inventory changes.
To combat the drastic drops in ROAS due to lower inventory, we decided to aggressively increase budgets when inventory is high or there's a new launch or restock to take advantage of their sales. When the inventory is low, we cut back spend significantly to compensate for fluctuating inventory. We've generated 5,348 sales at 3.73x ROAS using this strategy.
Because we wanted to avoid racking up comments about how products were sold out on our static ads, we decided to test using more dynamic carousels and collections with 'in stock' only product sets to compensate for the inventory changes and restocks. This approach has worked well for our client, with 1,692 sales at 3.77x ROAS.
We've generated $347,130.43 from Facebook alone for our client in the past 9 months. We’ve also generated $26,606.20 from Snapchat (a new channel for the client) at 4.06x ROAS in the past 3 months.
Overall we've generated $607,864.10 in the past 9 months even with COVID-19, additional inventory issues, and expanding to new channels.
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