Before getting deep into the step-by-step process of how we’ve scaled this brand, let’s see what we’ve achieved within 1 year:
Scaling DTC eCommerce brand from almost $0 to $3.8M;
Managed to scale the brand from scratch with a 27% NET profit margin (Yearly ROI: 3.1x).
Increased the AOV by 94% (From 35$ to 68% on average).
Increased the number of fulfilled monthly units from almost 0 to 70K.
Initial goals/challenges with the client:
Finding the best creative/marketing approach (messaging) which would let us start sustainable growth.
Increasing our AOV would lead us to bigger profitability.
Decreasing the CPA (which at the start was around ~$40) in a very competitive market.
Developing creative angles which would align with the brand owner's vision.
How does Kandy scale e-com brands?
It's simple. We reject most of the applicants.
That's not just a marketing trick. Most don't fit our specific criteria. We've failed to scale businesses in the past. That's why now Kandy only works with clients that we know we can bring results for.
And then, we run them through our process, which leads them to fast & sustainable growth.
The same thing happened in this case. They approached us, had a call, analyzed them and we saw that “yeahhh this product has it all”. All main features & attributes to be a successful business were in place. They already had established Amazon business with data, which has let us understand that the product fit in the market is great. This brand had the potential to become the #1 Fidget Toy in the USA eCommerce market.
At first, we had 0 data points for running Facebook ads or any type of traffic to our Shopify website. We didn’t even have any data in Shopify. We had to start from almost 0. But we knew that the product fit is in place and by implementing our consistent & sustainable processes we’ll be able to grow fast and prepare for the Q4, which will happen at the end of the year (obviously: the most important event in eCommerce).
Bu saying that I believe we can jump into the more in-depth analysis of each quarter.
Q1 January - March
Quarterly Revenue: $193,667.07.
Quarterly Ad Spend: $90,586 Quarterly ROI: 2.14x
Conversion Rate: 3.52% Average CPA: $22
Whenever we onboard a new client, especially those which are in the very early stages of their journey in Shopify eCommerce, we kick off with MMM Triangle.
MMM Triangle contains 3 main variables for building a scalable funnel. It helps us to start building a strategy around the things that actually mean the most in growing.
Message: A truly compelling, preferably irresistible, marketing message or in other words: Offer.
Market: High-profitability target marketing that identifies only those most like to respond. Or it can be called -> Advertising.
Media: The most appropriate, effective combination of media used to deliver your message to your market., also known as Marketing/Creatives.
...and yes, there are a lot of more narrow things that lead you to sustainable growth, but if you look at every business from a bird’s eye view, you will be able to that these 3 things, are the MOST important in the game of marketing, eCommerce or any other online business.
Since they didn’t have any type of data, we’ve started to execute with Market & Media.
Within the first week, we built a website without any offers, filmed & edited a batch of 25 video creatives, wrote 10x copies, set up 2 most important email flows (welcome & abandoned cart) and we’ve launched our first Facebook campaigns.
The reason why we executed fast was super simple -> to get that first piece of data, from which we would be able to start crunching those numbers and making important data-driven decisions.
After the first 2 weeks, we saw, that this account has a lot of positive potentials.
The Interest in the product was high -> High CTRs.
Creatives & Product creates a high emotional state for the target audience -> High Engagement Rates.
The Ad Account was instantly very scalabl