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THE CHALLENGE:

An online jewellery store wanted to increase profitability through paid Facebook campaigns. Earlier campaigns focused on total sales volume, which did not always maximise profit. The client wanted to prioritise products with stronger profit potential, even if total sales volume fell slightly.

The approach:

We developed a data-led approach to that goal:

  1. Product-data analysis: We analysed store sales data, particularly frequently viewed products and items with high conversion rates.
  2. Identifying jewellery with stronger ROI: Historical data identified products with stronger return on investment. These became the campaign's focus, often higher-end items or special collections with larger margins.
  3. Building relevant audiences: We built Facebook audiences around customers who had bought similar jewellery, visitors to relevant premium product categories and people who engaged with related organic posts.
  4. Product-focused creative: The creative highlighted the appearance and quality of the selected products. Copy focused on their distinctive features, materials and emotional value.
  5. Flexible budget allocation: Budgets were adjusted to campaign performance and product demand. Spend increased during higher-demand periods, such as holidays and special occasions.

The results:

The first two months required patience, as the focus on profit rather than volume affected total sales. The attached figures record the following subsequent results:

  • July 2023: ROAS: 2.92. Conversion value: ILS 2,323.14. Spend: ILS 794.71. Purchases of the selected jewellery: 4.
  • August 2023: ROAS: 3.24. Conversion value: ILS 11,298.88. Spend: ILS 3,485.97. Purchases of the selected jewellery: 18.
  • September 2023: ROAS: 7.62. Conversion value: ILS 28,040.35. Spend: ILS 3,679.73. Purchases of the selected jewellery: 42.
  • October 2023: ROAS: 5.14. Conversion value: ILS 8,532.80. Spend: ILS 1,659.45. Purchases of the selected jewellery: 20.
  • November 2023: ROAS: 8.76. Conversion value: ILS 22,401.53. Spend: ILS 2,555.80. Purchases of the selected jewellery: 49.
  • December 2023: ROAS: 6.95. Conversion value: ILS 17,592.01. Spend: ILS 2,531.92. Purchases of the selected jewellery: 47.
  • January 2024: ROAS: 8.75. Conversion value: ILS 23,109.06. Spend: ILS 2,641.68. Purchases of the selected jewellery: 37.

Although purchase volumes varied, recorded ROAS improved over time, particularly in November and January. The case study links this to its goal of improving store profitability.

Jewellery store

Conclusions:

For this store, focusing paid Facebook activity on products with stronger profit potential, supported by data and flexible budgets, was an effective approach. The early learning period and continued adjustments were part of the process.

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