For this local bakery, their mission is to transform society’s perception of donuts. Everyday should be a cheat day.

The Challenge

In between managing inventory, building a team, fulfilling the large volume of orders, and creating delicious recipes for new specialty flavors each month, our client had little spare time to dedicate towards marketing. However, they knew this was a critical component that could not be neglected in order to make their mission to serve their community a reality.

Our Strategy

Our client has a fantastic product that sells like hotcakes, literally. What they needed was a digital marketing engine that could pump them sales to take their business to new heights – but didn’t require hours of maintenance or attention each day.

From a quick audit of their ad account, we observed that they were solely targeting cold audiences. This is pretty typical in most clients’ accounts: a lot of interests that align with the brand, i.e. weight loss, paleo, keto, and the like. While this works, it’s not a cost-effective Facebook ad strategy that yields the highest ROI.

Instead of marketing to broad interests like crossfit, weight training, and vegan nutrition, we leveraged their Instagram followers, Facebook page fans, and customer list to build an assortment of lookalike audiences. Our strategy was to capitalize on their already loyal fan base to maximize profits, and then reinvest that revenue to expand market share for customer acquisition.

Next, we improved the ad copies to create urgency, reminding customers that the specialty flavors were only available for the month so they would order soon. This simple adjustment was shockingly effective, increasing conversions by 400%.

Our Results

What was perhaps the most surprising was that our new customer segments became even more profitable than existing customers. Cost per purchase dropped 70% to $1.48 from $4.97.

By generating similar audiences and remarketing to the most engaged customers of the brand, sales increased 73% with less than half the marketing spend, producing a 441% higher return with a modest budget of only $471.