The client was a single store brick & mortar retailer in the personal fitness niche with a product line that included fitness apparel and workout at home accessories.
They had recently established an online store on Shopify and wanted to find the best & most cost-effective way to generate revenue and build a customer list.
Since this was a brand new online store in a fairly competitive niche, we decided to test both Google Adwords and Facebook Ads to see which of the two platforms produced the lowest CPA (cost per acquisition) and therefore the best return on ad spend.
We decided to focus only on a few select products at the beginning. We then created a Facebook fan page and ran a small “Like” campaign so that we had some activity on the fan page before we ran paid traffic.
The next step was to select the actual products we wanted to test, starting with the female fitness niche.
Our “hook” was to focus on the prospect who didn’t have time to go to a gym (like a stay at home mum) but still wants to work out at home.
The products selected where all around this theme.
Above are two examples of ads for a resistance bands kit that we ran. This is just one of the products we selected to run traffic to.
Because of the passion in the fitness niche on Facebook, we were able to get a good click-through rate (7.5%) as well as a fairly low cost per click ($0.15/click).
This traffic was sent directly to the Shopify product page, so as to give the prospect an opportunity to purchase the product immediately.
We also tested using a bridge page/pre-sell page with content, however sending traffic directly to the store converted better. With some products, pre-sell pages work very well so testing both funnel types is important.
On Google Adwords, we focused only on search ads instead of display.
Our reasoning was that search traffic has the highest buyer intent, therefore in a lot of cases will convert better when compared to Google display ads.
The keywords were tightly focused around the same theme as Facebook, i.e. the stay at home mum looking to workout at home. Also, by using long-tail keyword phrases only, we were able to keep the cost per click below $1.
The click-through rate was much lower than Facebook, averaging 0.79% with the highest being 1.52%.
Both campaigns were able to acquire customers at a profit.
Although Facebook traffic had a high overall click-through rate, the cost per acquisition between both sources of traffic was similar.
The lowest cost per customer for Facebook was $23.36 (shown above) and for Adwords, $23.70 (also shown above).
Adwords traffic converted better, even with a higher cost per click and lower click-through rate because of the higher buyer intent. The prospect was already searching for the product (or something similar) and therefore was more likely to become a buyer.
We also had built a retargeting campaign so that both visitors from Adwords and Facebook that didn’t convert the first time were approached several times and offered additional incentives to purchase the product.
Some of the incentives included a free ebook, free fitness training videos, etc.
All the customers who purchased were placed in a post-purchase email sequence that offered complementary products over a period of 60 days, this increased the lifetime value of the customer significantly.
For example, customers who purchased the resistance bands were later offered fruit infuser water bottles with a free ebook at a discount. A significant percentage of those new customers took us up on the additional offers.
Overall the campaign produced revenues of over $600,000 in the first 90 days with double-digit ROI.
In this case, both Facebook and Adwords were viable sources of traffic for the new store, and having a retargeting strategy helped increase the number of first time buyers by re-offering product to prospects who didn’t convert the first time.
Lastly, the email follow-up campaign to new customers also added significant profits to the bottom line because this traffic was essentially free after the first purchase.