International expansion and 70% CAC reduction for 8-figures brand.
In this case study we are going to analyze the marketing strategy that allowed Perfectdraft.com to reduce the CAC by nearly 70% while expanding into a new market.
Perfectdraft is a company producing beer spiller, a product designed to dispense draft beer at home with the same quality as a bar or pub. The company is part of the multiple 8-figures group saveur-biere.com
The main goal for our collaboration was to expand to the Belgian market.
Being this a relatively small country we needed to confront ourselves with several challenges in acquiring new customers, such as establishing ourselves in a crowded market with an already existing strong “beer culture”.
One of the main challenges we faced was the small size of the Belgian market compared to other markets where the company was already present, such as Germany and the UK.
This meant that reaching our target audience was more difficult and more expensive.
Additionally, the strong beer culture in Belgium meant that there was a lot of competition in the market, making it difficult to stand out and be noticed by potential customers.
To overcome these challenges, we implemented several strategies to optimize our digital marketing campaigns (mainly on Meta Advertising and Google Advertising) and reduce our cost per new customer acquisition (CAC).
These were the main steps of our ongoing optimization:
1. Facebook Ads campaign structure optimization using power 5
Power 5 is a method that involves testing different ad formats and targeting options to find the most effective combination for a particular campaign. This allowed us to identify which types of ads were most likely to drive new acquisitions from our target audience and to optimize our campaigns accordingly.
2. DPA Campaigns on Facebook Ads
DPA campaigns (Dynamic Product Ads) is a type of Facebook Ad that automatically show products from a business’s website to people who have already shown interest in similar products.
This allowed us to show personalized ads to potential customers who were most likely to be interested in specific product categories / beer brands, increasing the likelihood of them clicking on the ad and making a purchase.
3. Creative direction compelling to the brand identity
We made sure that all of our ads were consistent with our brand identity and followed our brand guidelines. This helped to make our brand more recognizable and appealing to potential customers in a crowded market.
4. Google Ads structure optimization
We optimized our Google Ads campaigns by researching relevant keywords and targeting options that would reach our target audience most effectively. We also regularly monitored and modified our campaigns to ensure that they were producing the best results possible, by keeping our campaign budget structure with:
– 60% on Pmax campaigns for best sellers & new products.
– 15% on Branded Search campaigns
– 25% on Search Campaigns (split testing and targeting relevant mid-bottom funnel keywords)
5. Cross-channel budget efficiency
We managed our advertising budget effectively by analyzing the performance of our campaigns across different channels, such as Facebook Ads, Google Ads, and Instagram Ads. This helped us to identify which channels were producing the best results, and to adjust our budget accordingly.
Thanks to these strategies, we were able to significantly reduce our CAC from 180 EUR (June 2022) to less than 50 EUR (December/January 2022) in about 6 months.
All of this, while steadily increasing the acquisition volumes in a crowded market such as Belgium!
Additionally, our brand awareness and visibility were increased, which make us more present in the market and increase our organic sales.