Rocky Mountain Oils is a multimillion U.S. essential oils company providing its customers with proprietary blends grounded on their “love and admiration for nature and the healing properties of the earth.”
Before engaging with xAgency, they were working with a big digital marketing solutions provider but they were flying blind – they didn’t know where their ad spend was going and what results they were getting. They were spending $1 million dollars in advertising and paying agency retainer fees (equivalent to 20% of what they were spending) but their business was shrinking.
To make matters worse, there’s a huge gap between the numbers that Facebook was reporting versus what the other platforms such as Google Analytics and their own e-commerce database are showing.
They came to us clearly disillusioned with paid advertising and sceptical of marketing providers.
It was apparent from the very beginning that we needed to convince Rocky Mountain Oils that the problem doesn’t lie with Facebook itself as an advertising platform, but rather, the strategy that their previous agency was implementing. We had to do some digging and we were able to unearth a glaring problem:
Instead of focusing on new customers acquisition, their previous agency was spending the majority of Rocky Mountain Oil’s budget on retargeting existing customers. This led to diminished revenue and their customer base contracted as there were no new customers being brought in to replace the fallout.
Further, the conflicting reported numbers coming from the different platforms is due to a broad attribution setting on Facebook.
To fix this, we reallocated the majority of their ad budget to acquire new customers. A portion was also spent to win back unsubscribers from the previous years. We ran Facebook-only coupon codes to get irrefutable data on the effectiveness of Facebook as a customer acquisition platform and get a clear sightline on accurate and actionable metrics. We also adjusted the attribution on Facebook to a one-day click attribution.
If you ever want or need someone you can trust to find out the numbers YOU want know, then Marc Lindsay is your man.
CEO Rocky Mountain Oils
With the attribution adjustment and verifying the sales generated from the Facebook-only promotion, we found that Facebook numbers were a 93-96% match with Google analytics and Rocky Mountain Oil’s e-commerce database following a one-day click attribution.
This gave us data that is accurate enough to map out optimisation opportunities.
More importantly, this paved the way for Rocky Mountain Oils to trust Facebook again as a customer acquisition platform – given that the proper strategy was implemented.
By refocusing their budget on new customers acquisition and after a few weeks of testing and optimisation, we were able to increase their average number of first-time buyers per month from 1,500 to 2,500 on average, even going as high as over 3,000.
Consequently, this boosted their return on ad spend, revenue and profit and allowed them to reinvest more money into marketing to try other customer acquisition strategies such as a free give away funnel.
Co-founder and U.S. CEO of Afterpay