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Case study: Facebook Ads with ROAS 6+ for a Coffee shop on Shopify
About project
Caffé Uno is a family-run store in Estonia specializing in Italian coffee, compatible capsules and pods, functional Italian beverages and the Italian lifestyle.
At the start of the project, the client had a website on the Shopify platform, along with social media accounts, with fairly low activity.
Website: www.caffeuno.ee
Products
- Coffee beans
- Ground Coffee
- Nespresso coffee in capsules
- Functional Italian Beverages
Client goals
- Organize a steady stream of sales on the site with the help of Facebook and Instagram ads.
- To bring the project to a break-even point within 3 months.
- To occupy a part of the coffee market in Estonia.
- To enter the markets of other Baltic countries.
- To test different product groups in order to identify the most promising and profitable ones.
The problem
The difficulty was that the business was launched from scratch in a new country and a new culture, about which we knew little. We had to enter a new market in the shortest possible time, raise sales, offer good service, prices, better assortment, and correctly present to the clients in the Baltic markets what they did not have yet.
"We wouldn't have been able to realize our goals if we didn't have the initial market penetration that we got through Linemedia Digital."
What was done
1. Analyzing and setting up analytics
Setting the right KPI, setting the right analytics and tracking user behavior on the site – this is one of the key conditions for getting the desired results from advertising. Otherwise, there is the possibility of wasting the advertising budget. As a result, in the first month we did the following:
- We chose which targets we were going to track.
- Built a funnel of touches with products from first touch to purchase.
- Installed Google Analytics and E-commerce tracking.
- Installed Facebook Pixel event tracking on the site and set it up.
2. Conducted target audience and market analysis
After a detailed study of what was important to potential customers, we segmented the target audience based on their needs and what stage of decision-making people were at.
Several audience groups were formed based on interests and behavior.
It was also important to divide the audience into 3 language subgroups: Russian, English and Estonian speakers.
This made it possible to expand the coverage and make the advertising more personalized.
3. Development and implementation of advertising strategy
The initial advertising budget of the client was small, so we decided to focus on one main city – Tallinn. As USP (unique selling proposition) we decided to try free delivery in the city, since the client had such an opportunity and none of the competitors offered such a thing.
Next, we developed advertising campaigns, found the necessary audience and created advertising creatives, taking into account the portrait of the target audience.
The first stage
In order to collect statistics and get cheaper clicks, we launched ads with the purpose of “Traffic” with optimization for clicks. The problem is that such advertising campaigns rarely ever generate orders at a low price.
The second stage
we ran conversion ad campaigns for the first level of the funnel, namely “add to cart”.
The third stage
when the ad campaigns were ready and there was enough data, we switched to optimizing for final sales. These campaigns bring in orders at the lowest price.
Examples of advertising creatives:
Results
Dynamics of actual sales growth for the period of cooperation
Number of sales by months
No Data Found
ROAS by months
No Data Found
Price per purchase by month
No Data Found
Client Testimonial
Conclusions
In just 11 months project CaffeUno managed to reach the level of 500 orders per month. Brand recognition grew significantly, the project owner was even recognized in the street by customers.
The number of repeat purchases increased 14 times! This indicates not only correctly adjusted advertising for returning customers, but also high service and quality of Caffé Uno products. We continue to develop the CaffeUno project, exploring new countries, such as Finland and Poland.
New challenges: scaling campaigns and markets
The price per purchase has stabilized so the client has approved the budget increase. Partners emerged among clients who suggested developing business in other countries. Due to this the decision was made to scale to the whole country (Estonia), as well as to Latvia and Lithuania.
There was a need to do testing again to find working links. Having analyzed the advertising statistics, new advertising campaigns were launched with the goal “Conversion” under the event “Purchase” taking into account the most profitable formats, placements and audiences Thanks to the analysis and testing, the most effective “format+audience+placement” bunch was determined.
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