Specialty French furniture Co: 2857 Lamzac® Sales with a net profit of € 40,708!

Last summer we received a proposition from a French startup that specializes in selling inflatable chairs. Their business was just beginning and it was necessary to sell the entire batch of inflatable chairs as soon as possible. Initially, they wanted to sell them on Amazon. This didn't quite work out as well as they had hoped. Amazon only provided services for the delivery of the product.

In the beginning, they quickly created a very simple landing page on the Shopify platform. The company connected a payment gate and created a Facebook and Instagram page. The first launch of the ad did not produce the expected results. The cost per lead was much higher than the profit from the sale.

With this problem, they then contacted us

To summarize:

1. Our goal was to sell almost 3000 Lamzac® sofas in France over the summer (seasonal product).
2. There was a fully customized analytic on the website. All events and purchases was transferring to advertisement panel. This is very important and this is the key success factor.
3. The site was simply poor in terms of design. A headline, a few pictures of the product, a "selling" promotion -50%, a counter until the end of the promotion, a short description and "real" reviews.

For convenience, We will divide the entire advertising campaign into 3 stages: Preparation, Campaign Start and Optimization / Scaling.

To begin, we had to think about an overall marketing strategy. Instagram has a huge number of ad formats. The success of an ad campaign depends on the right choice.

Stage 1 formats

1. Launching a campaign, collecting key indicators, increasing Social Proof for ads.
2. Involvement in publication or PPE (pay per engagement).
3. Video views. Since we have a video in our ads, this allows us to collect data from audiences who have viewed it. This is also very cost effective.

Stage 2 formats
Optimizing the cost of targeted actions and scaling the campaign: Conversions.

The backbone of any Facebook ( or Instagram) campaign - we trust the algorithms.
Here is a little bit about advertising design: The client made a great video from other YouTube video cuts. We simply made it square and added some text & emojis. We threw in an arrow as a CTA(call to action) as well.

Why did we start a campaign with PPE / Video View? The reason behind this is due to two key factors that strongly affect the conversion at the optimization stage:

1. Increased post engagement with likes and reposts.
2. The virality of comments.

All this is provided by the so-called Social Proof. This creates the trust of users. By the end of the ad campaign, this post had over 10,000 comments!

Working with Instagram audiences
In this case, the target audience was as wide as possible. In the initial stages, it is impossible to distinguish interests and social characteristics. We acquired the first week's results:

More importantly, we received data on the cost and number of conversions per week:

1. Add to cart - 488 / 3.24 €
2. Initialization of order - 216 / 7.32 €
3. Payment credentials entry - 129 / 12.25 €
4. Purchase - 89 / 17.76 €

Using this data, we were able to move on to next stage of the campaign: optimization and scaling.

We then chose to optimize the "Cost of purchase" as our goal. The audiences were then categorized by age and gender. These were the same ads used in the first stage.

The following week's results:

Scaling the campaign vertically and horizontally

It was necessary to increase the amount of leads, while maintaining an acceptable price for the purchase. There are 2 ways to scale your campaign:

· Vertical scaling

This is any job with ad group budgets. The desired cost per conversion is 15 Euro, which we were completely satisfied with. We needed to capture at least 50 conversions per week. Thus, our budget for the week was €750.

· Horizontal scaling

This is work incorporates analytics, audiences and segmentation. During the course of the campaign, Instagram collects a huge amount of user data. Different custom audiences can be created from this data.

Segmentation: Everything is relatively simple here. We identified the cheapest social combinations, placements, devices, and platforms.

We'll just list those that worked well on this project:

• Site visitors for 7 days;
• Interactions with the business page in 7 days;
• Who added to the cart, but did not buy;

Retargeting should be noted separately. This is the warmest audience and has the highest ROAS (374%) compared to other audiences.

• Total sales: 2 857
• Selfcost and logistics: 35 141, 10 €
• Spent on advertising: 45 598.19 €
• Total turnover: 121 448, 18 €

Net profit: 40 708, 89 €