£20k p/m To £100k+ p/m In 30 Days – How To Scale Quickly, Maintain Profitability By Using All Aspects Of Facebook
Contents
Going from a 6 figure company to a multi 7 figure run rate company in a matter of weeks is something dreams are made of. So call us a genie, because we can make dreams come true.
Now I know that sounds really cheesy, but all jokes aside we’ve done this over and over in different niches, different countries, which is exactly why I want to share this specific case study with you. Spoiler alert, VERY NICHE business only selling in the UK (very small country!).
A very small family run business selling high ticket products in the automotive industry at rock bottom prices! The unique twist was that only 1 of each product was available and you could ‘win’ it by purchasing low ticket products on the website.
Not only was this unique business model a twist on anything else, but they were also running this business as a ‘side hustle’ from there main eCommerce brand. Furthermore, they ONLY sell in the small UK market.
The Problem
With any ‘side hustle’ time is a major limiting factor. There was also a very niche market, so to understand whether or not this was a viable business to scale long term they required our help.
Alongside that, skepticism and scams are rampant with any business, especially new businesses when it comes to any style of competition/win model.
The Solution
Such a unique business model obviously faces challenges, however, there are also some incredible upsides to a business that operates like this.
Unlike with most eCommerce businesses, there was no fake scarcity, NONE! Meaning? FOMO (fear of missing out) was something that we could leverage in a big way to reduce our customer acquisition costs.
That combined with gamification of products and giving prizes meant they were having fun buying from the brand.
We saw this as an amazing opportunity to engage with their fans and decided to heavily leverage Facebook’s organic page engagement to not only drive massive awareness but also significantly reduce advertising costs.
The Strategy
1) Product, Offer, Market Fit
Product market fit is without a doubt the most important thing to your success. Once you’ve proven that, the offer is the ‘icing on the cake’. Think of it this way, the market is the ‘fish’, the product the ‘bait’ and the offer is the ‘hook’. The better the hook the more of the market you capture with a product that you know the market wants.
In this case, the real hook was the potential for winning a price worth 20,000 times or more than the product you originally bought.
Let me give you an example, let’s say you like this apparel brand and when you bought from them you got entered to win a $50,000 Rolex, chances are you will continue to buy from them just in case you win that Rolex. Yes, the chances might be slim but there is a 100% more chance of winning than going to a brand that doesn’t do it.
Obviously by doing something like this when you have a proven product and a market you know wants it, gives you a truly unique hook that will make you really stand out.
2) Real scarcity
Have you ever heard the saying ‘flogging a dead horse’? If there was ever something that has been utterly ruined but small-time eCommerce business its scarcity. With their fake countdown timers, inventory bars, and ‘stock running low’ they really ruined it for everyone.
Customers have become so desensitized to it that now even with real scarcity they don’t believe it until they see it. It starts out as a real hurdle, a trust barrier to breakthrough, but once you’ve shown them that it’s true, then the flood gates open.
People naturally have FOMO (fear of missing out) and with the giant hook that we already have, its the cherry on the cake. The way we utilized it in this instance is with dates/times. The giveaways were scheduled for certain dates, and if you wanted to be a part of it you had to buy before either the time ran out or the number of available entrants.
3) Organic Facebook isn’t dead
“Facebook organic is dead” I’ve been hearing this for years now, ever since Facebook changed how it weighted organic vs paid people have been crying about it. Heres the thing, they aren’t wrong, but they aren’t right either. The power of organic Facebook isn’t what it used to be, however in conjunction with Facebook Ads its a completely different story.
You may not know, that posting content on your wall and engaging with your fans reduces your CPM’s when advertising, that’s correct, Facebook rewards you for organic. You can then take it up a notch using this sneaky tactic, Facebook Lives!
Once you have a reputation, even a small one, you can use Facebook lives and engagement with your audience to turn the dial to ‘11’, and here’s how. When you are engaging with fans tell them they will be entered into a ‘mini giveaway’ but they have to turn up to the live to find out how. Then when on Facebook Live ask questions, essentially bait engagement which Facebook will look at incredibly favorably. This has 2 effects, not only a reduction in costs but also an increase in how many fans will see your future organic content which will then bait further engagement, and the cycle continues.
Organic Facebook isn’t dead, people just don’t know how to use it or why. But now you do.
4) The Power5
“The days of manually hacking your way to ad success are no more. Top direct-response advertisers are now leveraging a specific set of automated ad tactics to unlock new phases for growth. We call these tactics the “Power 5” and when used together, they have the ability to transform ad performance and scale across the Facebook Family of Apps.” – Facebook
We couldn’t agree more, 2019 marked a big shift in how we advertise on Facebook, it was the end of gimmicky tactics. Instead, Facebook wants us to now leverage their AI to our advantage. If Facebook could speak here’s what they are saying “go broad, give us choices, sit back and let us do the work”
(Source: https://www.facebook.com/business/m/power-five)
Power5 made everything much simpler from a day-to-day management perspective and allowed us to focus on the creative aspect of the ad campaigns. In conjunction with increasing CR and AOV we generated over £480k in 90 days at 4.05X ROAS.
The Result
Combining everything from our years of experience paid off big-time in this case. 5X Increase in sales in 30 days and 19X increase in sales in the first 120 days.
