Product Line Expansion & Testing Using Paid Acquisition
TABLE OF CONTENTS
Background
Organifi is a well known health and wellness brand that was looking to recover their ability to acquire new customers on Google, Meta and TikTok. Previously the brand had experienced explosive growth on YouTube and Meta and was looking to recapture some of that momentum.
When we started with them, it had been a little over 2 years since they had seen substantial growth through paid marketing. Their goals were to re-gain a foothold in the Meta ads marketplace, establish a baseline return on ad-spend they could count on while scaling and find product-market match for a few of their new offers.
One of the barriers to profitable growth was the increased sophistication of the “greens” market since the inception of the company. WhenOrganifi started they were one of a couple major players in the “greens” market. As time went on they found themself competing with many other offerings targeted at specific subsets of the greens consumer market.
Complicating the situation was the fact that they’d had a number of account shut downs and bans due to some of the types of advertisements that were being run by service providers theyd worked with in the past.
Finally, the company was relying on their previous success with their initial greens product and was hesitant to invest substantial amounts in testing paid acquisition for their new products after their string of mishaps with their ads accounts.
Initial Account Takeover
When we took over the account we noticed a number of areas that needed improvement. We triaged the points and came up with a prioritized list of actions focused on: rebuilding the account from scratch, beginning onboarding of influencers to run ads through their accounts, testing 5 different products for use as their new Hero product, building a new cold traffic specific offer with the new Hero product, testing 7 of our 12 ads styles we use in alternative health and wellness products.
One of the underlying issues holding back their ads performance was their lack of data maturity or their ability to capture and translate events data into targeting data for the ads platforms or data for analysis and decision making.
We worked on correcting the issues with events data by having one of our analytics engineers do a full audit on their events tracking and installing a simple to use 3rd party tracking tool with an attribution model suited to Organifi’s product funnels.
Finally, we used the “offline events” feature to upload all their previous purchase data so we could open new ads accounts with automatically “seasoned” pixels trained on Organifi’s previous purchaser data. This often overlooked first step to standing up a new ads account allowed them to receive immediate traction on their new ads being tested as they were not starting over from scratch with their new ads account data sets (used for targeting).
Project Focus
The initial focus of our work with Organifi was transitioning their previously profitable front end growth model to an updated version of the DTC growth model we saw having the most success in their category (beginning 2023).
The front-end growth model Organifi previously used video ads and long form text sales pages. At the time the company was founded, this was a format that worked well to educate customers about the new category of greens supplements.
Along with the growth in the greens market came an increased sophistication of the market with similarly increased expectations from the customer. Now that customers were familiar with greens they were less intrigued by video ads explaining this “new” category of product. Basically, greens were old news and people needed to know why they should choose Organifi’s greens or any of their other products.
The updated DTC growth model we used relied on category specific influencers who were recruited as distribution partners to create content and allow us to run ads through their accounts (using their audience data).
While influencers were a crucial part of this updated growth model the largest changes were made in the style of ads being used and the messaging (positioning) of the products. Increasingly, we focused on shorter product focused ads that discussed updates to formulations and specific aspects of the product that were still unique in the category. We also focused on messaging around a few of the most popular consumer use cases for Organifi (uncovered by digging into previous customer data).
The last crucial piece of the puzzle for profitably resurrecting their ads accounts was the focus on velocity of testing new creative styles. With 12 different ads styles to film, edit and test and a limited budget to do it, we were operating within tight limits. Through our process of testing these 12 styles we found 7 that continued to drive profit for Organifi with 2 of those being clear winners across their product lines.
With ads styles and messaging tested we were about to thoughtfully expand the amount of products we were advertising. We relied heavily on cold traffic specific landing pages we created to align with the product messaging we were using in Organifi’s ads.
Building Brand Equity
Within 6 months of us taking over the account we took it from $0 to over $15,000/day in spend while staying above the Organifi team’s stated KPIs. For Organifi’s team, their KPIs required us to achieve CPAs that allowed their company to maintain a healthy profit margin on a 90 day LTV basis. To ensure we were working in lock-step with Organifi’s in-house marketing personnel we executed bi-weekly strategy and creative development meetings. The dashboards we set-up using standard 3rd party tracking tools (northbeam) as well as our own custom attribution system (to account for influencer coupon codes and landing pages) gave their team increased clarity into the incremental profit generated by their advertising.
Beyond increased success with advertising Organifi was able to drastically increase their spending on contractors and service providers. Prior to working with us they had multiple vendors and a scattered approach to outsourced marketing. Working with us they were able to consolidate this to bring ads, tracking, analytics, influencer marketing and page building under one service provider (ATTN Labs) drastically reducing their total contractor costs and removing 4 different service provider line items from their P&L.
In service of Organifi’s long term valuation we are working with the team to build their creative testing playbooks and set them up with simple systems for tracking and analyzing ads performance. Over time, Organifi’s team will be able to replace many of the crucial functions we are providing with in-house support so they can minimize vendor impact on their P&L should they choose to go through the acquisition process.
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Ready to Profitably scale?
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