A US Meal Prep brand who deliver refrigerated meal kits to busy families.
The business had grown rapidly and was sat at around 2,000 customers, signing up between 20–40 new customers per month on subscription.
When we started working with them this increased to over 200 new customers per month, whilst increasing Average Order Value and Lifetime Value.
They are up against large competitors who are funded by venture capitalists and use loss-leading giveaway deals to attract initial customers (such as HelloFresh or Blue Apron).The client had been testing these types of deals, but found that customer retention was low after the initial deal ended.
Their initial focus had been on growing the business locally and needed to expand nationally, although they found this to be challenging. The main goal was to attract new customers who order on average 10 times. Their Average Order Value (AOV) is $150.Previously they had successfully done local radio advertising, but had done no online digital advertising.
We were tasked with developing a full paid media strategy, and implementing it in order to achieve their desired revenue goals.These are some of the specific strategies we implemented and consulted upon:
We started off by dissecting the sales funnels of their 3 biggest competitors, which were Hello Fresh, Blue Apron and Marley Spoon.
We looked at competitor offers, landing pages, pricing structures, copy, videos, images, ads they were running and compiled all of this information into a report to present back to our client.
Some of the offers that we uncovered were not sustainable for our our client to run, due to them being loss leading offers. These big brands are funded by venture capitalists, who can afford to focus on loss leading marketing strategies.
Armed with this information the client was able to analyse what would work for their business, and we were able to build and implement the appropriate sustainable strategy.
Another outcome of the competitor analysis was the need to look at the landing page optimisation.We created a series of landing pages designed around the best performing offer with the sole aim of increasing conversion rate.
Across this series of landing pages we tested:
- Page Layout
- Call to Action Buttons
- Messaging (to different demographics)
- Social Proof (customer testimonials/reviews)
Landing page optimisation is often an overlooked part of the sales funnel, although can be one of the most effective in reducing marketing costs.
We ran split tests across 4 different landing pages and from this we were able to identify a winning landing page. This increased the conversion rate from 2.4% to 7.7%
We worked extensively with the brand to develop their personas, based on the data that we were seeing through their Facebook & Instagram channels – everything that we ‘could test’ was tested!
Facebook & Instagram give us a unique insight into the type of person that is converting – we can take a great deal from knowing the demographic (age, gender, etc), interests, type of creative that converts, messaging that resonates, etc.
Using our experience and all the data available to us, we then built out 2 top level personas and developed specific creatives, messaging, landing pages and offers for each.
Through this process we increased the conversion rate on both personas, with one being a stand out winner.
The next step was to relook at the persona that didn’t perform as well and make the necessary tweaks to the landing pages, messaging and creatives and then re-test.
The client wanted us to assist them in increasing their lifetime customer value, decreasing their churn rate and improving the customer journey of the subscription service.
As part of the retention consultancy we analysed and created a retention strategy that our client could them implement, this included:
- Email Marketing flows and automation
- Paid Social retention funnel
SMS (text messaging)
- Discount vouchers to include inside packaging, as well as refer-a-friend
- Re-Modelling the customer journey of the subscription service
As we went along we were constantly monitoring the lifetime value, churn rate and the financials.
Working hand-in-hand with our client on their retention funnel they were able to go from an average of 3 orders per person to 7, increasing the customer lifetime value from $247 to $511. This is an increase of 106% over a 12-month period.
Our client was already running successful local radio campaigns within specific areas.
However, we developed a strategy that worked hand in hand with their radio advertising campaigns by increasing budgets to the specific areas where the radio ads were being aired.
Not only did we increase the budgets, but we ran ads with specific copy and images based on geographical targeting and reinforcing the brand messaging.
So, not only had they heard about the brand on their local radio station, but now they’re seeing ads in their social media news feeds too.
This strategy pushed their Cost Per Acquisition (CPA) down by 50%.
Based upon all of the above, a combination of implementation and consultations over a 12-month period enabled us to achieve the following for our client:
- Increase the conversion rate on their online store from 2.4% to 7.7%.
- The average order value increased from $150 to $221
- In comparison to the previous year, they increased their monthly revenue from £57k to £274k per month.
- Facebook Ad Spend has increased from $500 per day to $1000 per day, whilst maintaining their Cost Per Acquisition in a very competitive market place.
- We maintained a 6.8% Return On Ad Spend (ROAS) over a 12-month period.
- Continually optimising new customer acquisition led to a 221% increase.
- A new record for them was selling 35,000 Chicken Parmesan Bakes in just 3 months.