Cutting cost per order from $30 to $8.47 in nine months

Cutting cost per order from $30 to $8.47 in nine months

Online Sales · Dessert shop

An online dessert shop sells cheesecakes and celebration cakes through its own store. When we started, its Instagram ads covered the whole range and paid about $30 for every order. We ran its sales campaigns across most of a year, one phase at a time, and each phase’s data shaped the next.

$8.47cost per order in the last phasefrom $29.65 in the first
5.85return on ad spend in the last phasefrom 1.55
236orders in one month on a $2,000 budget
153 of 156summer orders came from one productthe hero we found

The situation

A good product range, advertised all at once

The shop had a loyal base, a list of about 38,000 past customers, and a range of cakes that all looked good on Instagram. The ads treated them all the same, and the payment page was stealing credit for purchases in analytics, so nobody knew which ads were selling.

What we did

Five campaign phases, each one sharper

  1. Fixed the measurement first

    The payment gateway was excluded as a referral in analytics, so purchases credited the ad or channel that actually brought the buyer.

    CRO & Analytics
  2. Split audiences by temperature

    Past customers and recent visitors, Instagram engagers, and new prospects each got their own ad set. Recent buyers were excluded everywhere, and budget moved to the strongest set after two days of data.

    InstagramRetargeting
  3. Found the hero in the busy season

    One cheesecake box ad in the retargeting set hit about $6 per order and a 7× return. It got its own ad set and more budget, funded by cutting weaker sets.

    Budget reallocation
  4. Built around the hero in summer

    Analytics showed the buyers were mostly women aged 25 to 44. The summer plan ran one product per ad set, and the hero brought 153 of the 156 orders.

  5. Rescued a slow start in two days

    The autumn phase opened at a 0.94 return. Warm audiences were excluded from prospecting and a funded retargeting set added. Two days later cost per order had dropped from $51 to $18.

    Restructure

Cost per order, phase by phase

$29.65$23.00$14.12$11.50$8.47LaunchSeason testSeason scaleSummerAutumn
$29.65$23.00$14.12$11.50$8.47LaunchSeasontestSeasonscaleSummerAutumn
Cost per order by campaign phase across nine months.

Results

Every phase cheaper than the last

Return on ad spend, phase by phase

1.55Launch2.60Season test3.83Season scale4.40Summer5.85Autumn
1.55Launch2.60Seasontest3.83Seasonscale4.40Summer5.85Autumn
Return on ad spend by phase. Last phase: 236 orders and about $11,700 in sales on $2,000.

The slow-start rescue

Day 4Day 6Cost per purchase$51$18Return on ad spend0.942.79
Day 4Day 6Cost per purchase$51$18Return on ad spend0.942.79
The two-day restructure in the final phase.

What made the difference

Most shops advertise their whole menu. The data said one product was doing the selling. Building the account around it, with a permanent retargeting layer behind it, is what took cost per order from $30 to under $9.

Online Sales improves in cycles: test, read, move the budget. This is what that looks like over nine months.

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