From Rs. 20k ($250) to Rs. 12 Lakhs ($14.5k) in monthly revenue with ROAS improved from 0.4 to 4+
Background:
Niche : Gymwear / Activewear
Adspend: Rs. 80k / month ($1k)
ROAS: 0.2 - 0.4
Challenges:
Low ROAS, indicating inefficient ad spend.
Product lines that weren't yielding profitability.
What did we do?
Optimising ad acc & creatives: Within the first month of our collaboration, we revamped their entire ad acc right from targetings to creatives to copies as current efforts werent yielding any results. After rigorous optimization, we were able to end the month at 1X ROAS on adspend. Which we were able to optimise to a ROAS of 2 in coming months.
Product Line Evaluation: After extensive testing, it became evident that the existing products weren't going to be profitable in the long run. This led to a pivotal discussion with the brand's team, when they visited our office earlier this year. This span about 3-4 hours, where we charted out the next steps:
Website Optimization: Acting on our CRO recommendations, the brand's website underwent significant improvements, ensuring a seamless user experience.
Introduction of New Product Lines: In February, the brand launched a new product line. This move, combined with our refined advertising strategies and learnings from past months, led to an immediate surge in orders, with the latter half of February witnessing a 4x ROAS.
Consistent Performance: From that point onwards, we've consistently achieved a 4x to 4.5x ROAS. This includes the experimental spends aimed at identifying new winning products and collections. In fact, last month, the brand hit a revenue milestone of Rs.12,00,000 at an impressive 5x ROAS.
Identifying Bestsellers: Our data-driven approach helped us pinpoint multiple product categories that are generating an astounding 8x to 10x ROAS. However, stock issues with these bestsellers have been a limiting factor, something the brand is aiming to overcome in the coming months.
Whats next?
Future Goals: With the groundwork laid and a clear understanding of the target audience, creative styles, and communication, our next objective is to elevate the brand's monthly revenue to Rs.35,00,000 to Rs.40,00,000. We've already tasted success with achieving 100 orders a day at a ROAS of 8+. As the brand gears up to restock its bestsellers, we're poised to ramp up our efforts.
Redefining Account Structure: As we set our sights on achieving 200 to 300 orders daily, we recognize the need for a new account structure. The existing one, while effective for our current scale, might not support the brand's ambitious growth trajectory. Which is where our teams attention would be for the current month, so that we are ready to scale once the best sellers are back in stock in coming weeks!
Conclusion:
Its important to nail the TGs along with creatives and communication early on, while also understanding whether its the products or the ads which aren’t yielding results.
Simple fact is, some products would require alot more push than others, and you will find yourself to be profitable in lines which dont require alot of push. Once you have such a product - the right TG, communication and creative will help you elevate your performance and help you scale the brand up in a very short span of time.
Hope you found this case study useful! What points from this you found to be most useful?