[Before working with us]
August 2021 – $2,812
[We start working with them]
September 2021 – $45,482
October 2021 – $93,219
November 2021 – $213,412
December 2021 – $145,933
$0 ad spend in creating this revenue.
Total revenue generated after working with us after 1st 4 months:
As we work on an account, we usually get better results progressively because we test a lot of the messaging, designs and automations in order to understand what customers like/don’t like.
The more data that we have, the better campaigns normally peform.
The customer base and ‘engaged contacts list’ also gets larger overtime so open rates and engagement rates of our emails improve.
Who is this article for?
- If you are an eCommerce business owner selling $1-25m/year in revenue
- If you want more profit/free cash flow in your business
- If your ads are not profitable
I hope this serves you well, please read this article as it will help you.
Why bother reading this article?
- You have product market fit, but rising customer acquisition costs are eating into your margins
- It’s getting increasingly more difficult to convert customers on the 1st touchpoint so you need something that can extend the Lifetime Value (LTV) of your business in order to stay profitable and growing
- You may even be selling very expensive things online (>$500) or a product that requires constant education in order to convert the customer to purchase (Eg. Supplements, Health Products)
Challenges that LifeSpanFitness was facing before working with OXG Media
#1: Google Ads as the frontend acquisition channel was inconsistent & volatile
LifeSpanFitness (LFS) was using google ads as their main acquisition driver to acquire customers on the frontend. Using very obvious search terms like ‘Standing desk’ with google search and shopping ads.
However, because of competition they saw inconsistencies in their advertising performance as the google channel was flooded with a ton of other brands who were selling cheaper versions of similar products.
The CPCs for these types of products were competitive and so the margins on the frontend purchase would be consumed in the 1st time purchase.
There were only 2 ways to increase gross profit of each purchase:
- Decrease cost of acquisition with ‘better marketing’, more efficient marketing
- Increase the LTV of the customer to pay for the increased acquisition costs
#2: Customer journey was very transactional, and low conversion rate for high ticket product
Most of the customers who come from google are already looking for a product to purchase. They are bottom of the funnel (BOF) customers who are in the stage of searching for a solution. These customers, although high quality traffic, usually do not make a purchase the 1st time that they come on site.
- Land on the product page and leave
- Opt in for a discount on the popup, browse through a couple of pages and leave
- Add to cart, checkout, see the final price and leave
It is very easy for customers to hit the ‘backspace’ button purely because the product does not interest them. And the problem with that is that, most of the interactions with a brand become transactional and people are quick to go price shopping and compare prices.
The thing is, that once someone has clicked on your ad, you have already paid for that click or impression (FB and other platforms) and you do not fully utilize or extract any value from that customer interaction.
LFS also sells high ticket products in the price ranges of $500 and above, this generally means that the conversion rate for cold traffic is usually extremely low. So when CPC prices can be $10 and up, the brand needs to make every click that lands on the website count.
To be able to convert traffic into paying customers especially for high ticket products, complicated products (like supplements and subscriptions), there is usually an educational aspect that you need to fuse into your marketing strategy in order to generate sales.
Most brands simply focus on pushing ads on the front — and don’t build out the backend in order to cultivate a relationship with their customers over time.
#3: Had a massive customer database that was not utilised at all
Lastly, the customer database that was in the Klaviyo CRM was massive but the brand had not sent emails for a very long period of time, making it challenging because we had to start from scratch to get the list opening our emails.
When a list is not active for long periods of time, suddenly emailing everyone will affect email deliverability and domain reputation with the email servers.
These were the problems that we were facing.
EXECUTION GAME PLAN
In this section, we will share what we did in order to produce results like these. Keep in mind, everything that we do has to drive revenue for our customers. These are the actions that move the needle.
- Opening up top of funnel with popup optimization
- Creating automated flows
- Ensuring email deliverability
- Customer segmentation & higher
Opening Up Top Of Funnel With Popup Optimization
Before we came onboard, the client was only collecting emails when people purchased something from them, this really stagnated the collection of emails and there was very little lead flow coming through into the email automations.
Furthermore, a good 95% of the entire list was actually suppressed Klaviyo profiles, meaning that they were inactive and lots of them were hard to reach/low likelihood of opening the emails.
This made it very difficult for us to start generating revenue quickly as they were considered ‘dead leads’.
Hence we had to create separate, customised pop ups from scratch to start collecting ‘fresh leads’ who have not bought from the brand in the 1st place.
We implemented a series of mobile and desktop customised popups to increase likelihood of opt in rates, also testing several different offers in order to attract a higher quality audience.
This enabled the fresh leads coming into the funnel to enter the ‘welcome series’, the email flow that would build rapport and start the relationship off with customers.
Creating Automated Flows
Besides that, we always 1st build out the essential email flows that every eCommerce brand needs, here are the following:
- Welcome Series
- Abandoned Cart
- Browse Abandonment
- Product back in stock reminder (if physical product needed)
- Post purchase thank you + Upsell
For email designs and such, we designed custom designs and graphics for the brand in order to match their customer persona and target audience. The designs that you see here are some of the newer designs that we created.
Note: This definitely requires testing overtime as you would be able to observe from the data which designs work resonate better with your audience.
Ensuring Email Deliverability
In the past, the team was just sending emails to their entire email list, this caused the open rates to suffer greatly and some emails were being sent out at a very measly 5-7%. This is bad because it affects your domain reputation with the email service providers (ESPs).
When you send emails out in bulk, and have very low open rates, the email networks will flag your domain and IP address for low deliverability. Usually when very few people open your emails, it is a sign to gmail for example that you may be spamming people which they do not like at all.
Customer Segmentation & Higher Open Rates
Hence what you need to do instead is to send people emails based on your per user activity such as…
- Number of times visited website
- Number of times visited product page
- Number of times opened or clicked upon the email
- Whether they have bought from you in the 1st place
All of these factors lead to the ESPs giving you the signal that this person is active and willing to be on your list, hence when you do send them an email for example, you would have a high open rate.
Here’s Our Call To Action
We have been able to and are generating significant value for the clients that we serve. If you are interested in us possibly helping you with your business, we would love to have a chat.
And if you don’t get results with us, we will literally refund you so you don’t pay.
Book a call below to find out more.
No commitments, if there is a possibility for us to add value to your company, we can talk!
I help ecom and info product businesses scale through paid traffic.