Retailers are increasingly recognizing the power of Facebook to fuel new customer acquisition. A leading pet retailer was looking to find and acquire new customers on Facebook. The challenge for Acceleration Partners was to develop a scalable strategy for leveraging Facebook as a customer acquisition channel by achieving a $100 or lower CPA in a five-week period.
Strategy & Approach
With so many variables in Facebook advertising (image, headlines, and infinite targeting options) and a limited time (five weeks), it was important to take a very structured approach. Acceleration Partners leveraged its “Waterfall Testing” methodology to quickly identify sweet spots in image, headline and audience targeting.
The process involved isolating campaign variables with the goal of quickly eliminating the options that weren’t working. Acceleration Partners started by serving various ad images with the same headline to one audience in order to isolate the best performing ad. The winning ad or ads was then used in the next round of testing with various headlines, but still the same audience.
In the next step, Acceleration Partners tested the winning combination of ad image and headline with 15-20 audiences to establish a CPA per audience. From this point, we continued to optimize and narrow targeting parameters to further reduce CPAs. Using this approach offered a systematic testing method that enabled the retailer to quickly optimize their campaign without wasting money on testing a large mix of images, headlines and targeting all at once.
The campaign proved that Facebook is an effective customer acquisition channel for the pet retailer. By the conclusion of the project, the retailer was achieving an average CPA of $100 with a campaign that was scalable and had room to further optimize. The results demonstrated that for this client, Facebook is a viable channel for new customer acquisition at a CPA that parallels other channels such as Google AdWords.