Increasing New Customers to Grow Online Sales
Our client is Coava Coffee Roasters, a specialty coffee shop that has brick and mortar locations and an eCommerce presence.
Coava Coffee has a high customer return rate—when a customer buys from them, chances are good that they'll come back again. But, the company was ready to expand their online customer base, which meant putting them in front of new customers. We needed a strategy that would effectively introduce prospects to Coava Coffee and bring in new customers.
Building on Solid Return Customer Rates
Coava Coffee's retention levels are terrific. They offer both individual items and subscription services, which is a great way to keep customers coming back month after month. We knew that if we got their ad in front of the right people, we'd be able to bring in more customers, many of whom would bring in regular revenue month after month.
We felt that targeting a larger audience at ToFu would allow us to attract more new customers. Once they had a taste of her coffee products, retention would largely take care of itself.
Capturing ToFu Audiences With Historical Data
We approached this client’s goals with 2 strategic perspectives:
- Targeting bigger audiences in ToFu ads would allow the pixel to optimize/find the right purchasers.
- We could utilize the high return rate for a 'winback' campaign by targeting people who have purchased and suggesting a coffee subscription.
Coava Coffee had previously run an ad which was generating 5x ROAS. While we hadn't established a specific ROAS goal when we started, we knew that the Pixel had some great historical data that we could put to use.
Since our client’s ad account was not set up in Facebook Business Manager, we were limited from running custom lookalike audiences. However, by utilizing interest-based audiences and Pixel-data audiences, we were able to overcome that challenge to target her ads to just the right people.
Because we knew that broad audiences perform better we hypothesized that we could significantly increase her conversions by putting her product in front of new prospects. Additionally, we created a campaign targeting purchasers to suggest a coffee subscription and bring them back into the sales funnel.
$138k in Revenue and 3x the Customers
Our strategy yielded impressive results, with 3x the YoY revenue—from $41k in January 2020 to $138k in January 2021. Additionally, our ads brought in three times as many new customers as the previous ads. Thanks to Coava Coffee’s excellent customer retention rate, achieving significant new customer growth is a success that will continue to pay off in MRR.
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