100:1 B2C Return on Ad Spend - Learn How We Did It

A quick search for "what's a good ROAS?" will tell you a marketing campaign that gives your company a 4:1 return is hitting the broad average. Generally speaking, this isn't bad information. If you're spending $10/day on Facebook ads and gross $1200 at the end of the month, you're doing pretty well, especially if you're running a startup.

Regardless, that isn't good enough for Trajex or our clients. For one startup, we achieved 100:1 ad spend on a Black Friday 2021 campaign. I'm going to summarize how we did this, and how your startup can do the same. 

One clarification: the client was a B2C e-commerce retailer, so our advice will apply largely to this kind of business. 

Where We Started

The road to our client’s payday began with establishing a loyal following in 2020. We launched a social media presence on Facebook and Instagram. The client had a substantial roster of quality product images for us to use, so we used those images along with additional original content to grow an ever-increasing number of social media followers. 

This was backed up by meaningful ad spend on Facebook ads, which generated both revenue and awareness. We chose to use only the highest quality content, protecting the brand image, improving reach, and encouraging followers to comment and engage. 

On the website, we collected customer info with every purchase, in particular phone numbers and email addresses. We encourage every retailer to collect as much contact info as possible, but make sure you get permission to do so at checkout! You don’t want to get into a situation where you’ve got a pile of phone numbers but contacting them could put you at legal risk. Start early and collect customer data the right way as quickly as possible. 

Trial Run

In November 2020, we ran the company’s first aggressive marketing campaign for Black Friday, using a mix of tactics. This mix became a critical signature of this client’s advertising, and the lesson is obvious: reach your customers through multiple channels, to catch them where they are! We used a mix of email marketing, social media (with plenty of hype and buildup in advance), and paid partnerships with related social media pages.

The campaign was expensive but successful, with ROAS around 10:1. Better than the industry average, but not good enough. 

The next campaign came in December 2020. This was the first time the client used SMS (text message) marketing for a campaign. Before launching, we dug into the customer database and carefully cleaned the contact information in Excel, deleting duplicate numbers and cutting out the segment of customers who we didn’t want to reach with this particular campaign.This helped save money and time by preventing the messaging platform from spending the client’s money twice on the same customer or getting gummed up with incorrectly typed numbers.

 We ran two 30 minute deep-discount flash sales, reaching clients through social media and SMS. This campaign was much cheaper than the previous as SMS messages can be sent to customers for just a few pennies apiece, and generated a remarkable amount of revenue. Even this was still to be exceeded, however.

The Big One

In 2021, Cool Toys experienced continued growth and achieved a consistent ROAS through social media ads and continued investment in content marketing. A crowdfunding campaign was launched to develop a new product and we began a regular email marketing regimen. 

A note on the specific messaging: This client placed great emphasis on seeing the product and company as a kind of movement, with a focus on the customer as a participant in something bigger than themselves. The psychological impact of this was to inspire loyalty in buyers and a genuine interest in the fortunes of the company. People were thrilled when the company developed something new, offered a special, or shared exciting information.

In other words, if you want big sales, you need big emotions. 

By the end of 2021, the stage was set. The client had:

  1. A regular email marketing audience
  2. A vetted and polished SMS database (with customers who had received texts from the business before, but only infrequently, a big plus in SMS marketing)
  3. An established social media presence

The campaign was launched on Black Friday using social media and SMS. We offered a substantial discount and targeted our most loyal followers and previous customers. Within a few hours, we’d reached our crowning achievement: $100 back for every $1 dollar spent on advertising, and an amazing gross.

This was an incredible moment, but as I’ve attempted to demonstrate, it’s obtainable for more than just our client. Your startup can leverage the power of a multi-channel approach, the affordability of SMS campaigns, and an engaged audience to see ROAS you’d hardly thought possible.

If you’re feeling overwhelmed by the myriad of digital marketing options available to you, send us a message. We can help you understand your options and design a strategy that’s just right for you. At Trajex, we love to help growing businesses experience the remarkable results our clients have enjoyed!

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Tyler Smith
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