Social Media Ad Campaign for Chalet Boutique
Imagine generating more than $14,000 profit from a $2,500 ad spend
The client.
We were approached by a Chalet Boutique, an incredible local Hobart-based business that sells lush, healthy plants across Australia who were interested in seeing how Facebook Ads be utilised. They had an engaged existing following on their Facebook and Instagram platforms but knew that there was a much larger customer base across Australia where social media ads could be used as a way to tap into that market.
The ad strategy.
The objective was clear – drive sales on the website by introducing the products to new customers based across Australia. We did this in four different ways
Audience segmentation to conserve ad spend & preserve the ad quality
Utilising email marketing post-purchase to encourage subsequent purchases and increase the overall customer lifetime value
Running dynamic product ads so the client wasn’t paying to advertise a product that had sold out
Consider customer purchase patterns and psychographics to determine what products to promote
One of the things we consider prior to initiating an ad campaign for a client is whether they have the processes and systems to maintain the customer experience & encourage subsequent purchases once the ads are running. The cost of acquiring a new customer is decreased significantly when they’re returning customers or when they become advocates for your products and services (gotta love that word of mouth marketing!)
The results.
When we run advertising, we’re looking at the long term results from an ad, which takes into consideration the returning customer rate, average order value and finally the number of clients obtained during the ad campaign.
During the ad campaign, Chalet Boutique gained 137 new customers, 60 of which made their purchase within the attribution window (attribution window = they made their purchase within 7 days of interacting with the ad). The long-term gain from the ads was $14,611.80. This is a 3.8 x Return on Ad Spend (including all agency fees paid to us)
Additionally, during the ad campaign -
the average order value for Chalet Boutique was increased by 71%
their retuning customer rate was increased by 83%
47,260 people saw the ads, raising the overall awareness of the brand – a benefit other than our core objective of generating sales
At the height of the campaign for this client, they were seeing an average CTR of 1.93% - that’s more than double the average benchmark.
For some context Home and Garden Ads on Facebook and Instagram have an average Click-Through-Rate of 0.71% - in layman’s terms, this means that for every 129 people who view your ad only one person will click on the link or action within your ad.
If you’re considering utilising Facebook and Instagram ads in your eCommerce business get in contact to chat about how it could work for you and help you reach your long term goals (and even some short term ones too 😉)
Or read more about our Facebook and Instagram Paid Advertising services.
If this article has you keen to purchase some high-quality plants for your office or home head on over to Chalet Boutique
