Lifeboost Coffee Case Study

Success Story

We deployed an aggressive creative strategy to increase Lifeboost’s Return On Ad Spend (ROAS) by 55% in the first month. We more than doubled their Average Order Value (AOV) through a series of offer and landing page tests.

Every month was a record month for them. We grew their revenue from $17K per month to over $765K per month while maintaining profitability. Now over 100,000 people have tasted Lifeboost healthy coffee. And arge percent of those people become subscribers.

RESULTS

Increasing The Average Order Value

We knew that for Lifeboost one of the key components to stay competitive at scale was to increase the Average Order Value.

To increase the AOV we ran multiple tests with combinations of bundles, price discounts and upsells.

The biggest win we found was to offer multiple units at a higher discount followed by one click upsell. That alone increased the AOV over 2.5X. Now we had more room to continue with aggressive creative testing.

Aggressive Creative Testing

We have created over 389 videos and did 77 creative tests in 12 months. As a result we increased ROAS +55% and reduced Cost per Purchase -64% while scaling revenue from $17K per month to over $765K per month.

Creative is KING. As machine learning has drastically improved and media buying is simplified and automated, creative now is the main driver of performance on Facebook.

When it comes to testing creative we believe that “Speed Beats Quality”. 95% of all creative tests fail. To achieve high performance it is crucial to produce high volume of creative and test it fast.

When you scale spend fast creative begins to fatigue and performance starts to decline. To offset that we increase the volume of creative testing and find fresh winning concepts that will maintain ROAS at scale.

Scaling Fast And Efficiently

At this stage we had strong AOV and multiple strong creative wins that gave us confidence to start scaling ads aggressively

We knew that our high quality and highly engaging creative is winning viewers in the auction against other competitors bids.

To maximize spend and conversions fast we launched audience expansion campaigns using CBO (Campaign Budget Optimization) and highest value bidding strategies.

One way to scale fast and efficiently that works very well for us is Audience Expansion. The idea is to build a high volume of Lookalikes based on different high value customer segments. Then we run our top creative against these audiences. This allows us to tap into net new users, reduce audience fatigue, reduce CPM, and then convert visitors with retargeting at a higher ROAS.

Retargeting And
Customer Retention

To maintain growth month over month it is important to find the sweet spot of your retargeting and acquisition spend. For eCommerce that number is 30/70. That means your retargeting spend should be around 30% of total spend.

As retargeting drives up to 3x the ROAS we allocate spend strategically to complement the acquisition growth while hitting ROAS target.

To increase customer retention and Lifetime Value (LTV) we created tailored offers and creative combinations that target different customer segments.

As a result customer Lifetime Value increased over +90%.