Have you ever tried to open a Coconut by yourself? Then you probably know that this is a huge pain. The classical musician and entrepreneur David Goodman has solved this problem forever! After years of experimenting he invented the perfect coconut opener and started selling it. He had already generated 325 000 USD in sales when in 2015, he was a guest at the US Start Up Show “Shark Tank”. Mark Cuban immediately saw the potential (“When people solve problems that nobody knew needed to be solved, industries are born.”) and offered to invest in Coco Jack. The business is growing quickly, has a patent pending and is awaiting investments in order to take over the global market.
Our goal was to increase Coco Jack’s online sales revenue while maintaining a strong and positive ROI in order to prove that their sales volume could be scaled.
Coco Jack had previously been able to scale Facebook ads to a daily ad spend of up to 3000 USD. While their sales were still profitable, the ROI dropped drastically during this process. The challenge was to prove that their sales could be scaled without sacrificing a strong and positive ROI.
With our advanced Facebook ad strategy, Coco Jack was able to more than double (126% increase) their sales revenue within 5 weeks while maintaining a strong and positive ROI. Together, we proved that the product could be scaled and that there was a much bigger growth potential for the brand!
The first solution for David was to understand what he needed to take his campaigns to the next level. Dave did a great job running the Facebook ads himself for over a year with a good ROI. For every dollar spend on Facebook ads, Coco Jack was actually making money. Indeed, the big majority of his sales were coming from Facebook ads. This is a remarkable achievement for a CEO and Founder of a company who only has limited time to learn and work on Facebook ads. It showed that Dave had a great understanding of marketing and of his customers.
The Coco Jack campaign had an enviable project launchpad for any serious Facebook marketing expert: An owner who understands the dynamics of online marketing, stacks of previous marketing data and lofty goals with an equally growing marketing budget! It took 4 important steps to achieve our objectives:
1. Data Analysis
The first step was all about learning as much as possible from the previous campaigns and to understand our target audience and their buying motives. The existing knowledge of David was very helpful at this point and gave us a good jump-start. During this process, we identified key data points which guided our strategy. This happened in the first days and implementing our strategy had an immediate positive impact on the sales revenue.
2. Customer segmentation
Naturally, Coco Jack is attracting a lot of different customers. We segmented the different customer groups in order to compare the results (cost per sale) and to market to them one by one, each with its own marketing message. Asians living in the US respond better to certain ads and marketing messages than vegan house wives for example. All of them eventually end up buying Coco Jack for their very own reasons.
3. Facebook Ad Restructuring
We completely restructured the campaigns and focused on the following 3 main campaigns: Awareness, Sales and Remarketing.
Awareness: The existing ad material was perfect to build awareness for our product. Coco Jack had some short Facebook videos that explained the product in a non-pushy way. This allowed us to reach 1000s of new potential buyers every day.
Sales: In the next step, attention-grabbing banners sent people directly to the website.
Remarketing: Not every user is ready to buy “right now”. With 1000s of daily website visitors, there are a lot of lost opportunities. Remarketing helps us to get a lot of people back to the shop once they are ready to buy.
4. Ongoing Optimization
After getting the basics right it was very important to monitor, test, and optimize the campaigns. While we could break it down to the above described three main campaigns we actually had 100s of different ads for different objectives, audiences and different creatives running at the same time.
Within only 5 weeks of work we were able to:
– Increase sales revenue by 126% (yes, we more than doubled it!)
– Maintain a positive ROI of 3x
Along the way we spotted more opportunities beyond Facebook marketing that have helped Coco Jack to save money on ad spend and to better serve and convert the customers such as:
– Switching to a mobile first online shop and optimizing the performance: According to our data, most users were mobile-user. Changing to a mobile-first only shop has increased the conversion rate.
– Introducing Google Adwords: It turned out that Google Adwords could also generate a lot of cheap conversions and is now an important part of the overall marketing strategy
Coco Jack still has huge potential for growth, both in the USA and globally. The main challenge is to source investment in order produce enough stock and set up supply chains in order to serve a coconut-crazy global market!