Achieving an 11x ROAS and $11,000 in Sales Within a Month

Client Overview

Wedding Decor Mall, an online and retail store specializing in wedding decorations and accessories, was looking to improve its online presence, increase sales, and attract a larger audience. Despite offering a unique range of products for weddings, the brand faced challenges in reaching a wider customer base and engaging returning customers effectively.

Challenges

• Lack of recurring revenue: Most of their customers only bought once and never returned.
• Unpredictable sales: WDM didn't have a way to consistently generate sales. Some months had high sales volume while some had very few transactions happening.

Objectives

• Boost online sales and conversions through paid advertising.
• Increase traffic and sessions on the website to enhance brand visibility.
• Improve customer retention and returning customer rate.

Strategy and Execution

We first started working together with Wedding Decor Mall in 2022. They ran a wedding supply store with a retail and online component. Sales had been flat for several months even during holiday season. Most of their customers only bought once and never returned.

We were brought in to help increase their online sales using our experience in paid advertising and marketing. We identified several unique angles and tested them quickly with ad campaigns on Google and Facebook. Initially the ad campaigns weren't successful even though they had a unique business with few competitors and great products.

We continued split testing different creatives, CTAs and offers for a few weeks however we weren't seeing significant results. We theorized that the root cause must the the targeting since all the other factors were already optimized. We decided to use our own proprietary database of 10M+ contacts rather than rely and Google or Facebooks targeting.

Once we launched the new campaigns the results were immediately apparent. Sales shot up significantly and most importantly many of the customers were recurring. The spike in sales in January (graph below) was attributed to our new campaigns with different targeting. Surpassing their usual black friday and boxing day sales by a significant margin.

As well most of these customers purchased again since this was a completely different segment of the market. 40% of their new customers made another purchase within a month of their first order. Within the first year 90% of those customers purchased again from WDM. We were able to unlock this completely new segment of the market by targeting high value B2B customers through the use of our internal proprietary database of contacts. This also increased the valuation of the business and created more predictable and recurring sales.

Eventually this led to WDM being acquired by a private equity firm for an undisclosed amount on the basis of their increased revenue and diversified customer acquisition channels.

To summarize our customized customer acquisition strategy consisted of :

1. Targeted Paid Advertising Campaigns
   • We launched data-driven campaigns on Google Ads and Facebook Ads, designed to attract a different segment of the market.
   • Audience Segmentation: We targeted corporate and hospitality industries which have a need for recurring purchases and were underserved.
2. Audiences
   • Leveraging our proprietary database of 10M+ contacts to precisely target high value recurring B2B customers rather than the broad B2C targeting possible with Google and Facebook.
3. Conversion Tracking and Analytics
   • Created custom landing pages for specific products designed to maximize conversion rates.
   • Implemented conversion tracking across all ad platforms, ensuring real-time visibility into campaign performance.
   • Continuous A/B testing to optimize ad creatives and messaging, improving click-through rates (CTR)

Results

• 11x Return on Ad Spend (ROAS): Generated $11,000 in revenue from just a $1,000 ad budget.
• Recurring Revenue: Returning Customer Rate: Reached 40%, showing that a significant portion of customers were coming back for repeat purchases.
• Acquisition: WDM was acquired by a private equity firm for an undisclosed amount on the basis of their increased recurring revenue and predictable sales from their ecommerce store.

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