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Dan John is an Italian menswear company with its headquarters located in Rome.
The brand was founded in 2015 by two partners, who had the mission to make formal and trendy Italian menswear affordable and accessible for everyone. The brand has experienced incredible growth in the past years and received numerous awards, Dan John has opened over 90 stores in Italy, plus 15 more in other countries around Europe.
Despite the incredible growth of the past 4 years, COVID-19 crisis hit the company quite hard. As a company mainly focused on brick and mortar, they needed to shift heavily to eCommerce as soon as the lockdown began in Italy.
When we got in touch with Oscar, the CMO of the company, they already had a store set up on Shopify, which was already doing quite well.
The product design is great, and people absolutely loved the idea to have such nice clothes for an affordable price!
When Oscar came to us, they were in need of professional help to manage their Facebook Paid Ads, and to squeeze as much revenue as possible from that.
When we started working on the account, Dan John was already spending profitably around $150/day on Facebook. ROAS was around 3.7x, so not bad at all!
Still, for the company, that profit margin was still pretty tiny, and even though they were aware of the fact that improving these results wouldn't be easy, they decided to give us a shot.
After a first audit, we identified some major pain points that we immediately felt the urge to implement in our first tests:
- Short window retargeting audiences, which were made by people with high intentions yet didn't receive enough exposure to the ads (Such as cart abandoned in the past 1-3 days, or website visitors in the past 48 Hours)
- Dynamic Ads and Lookalike audiences were not present at all, and we immediately implemented these in the campaign structure in order to leverage FB's AI at its best.
- Shopify's tracking API was not properly integrated with the FB pixel, which led them to lose around 15% of the people they should have been tracking for remarketing purposes. We immediately fixed this.
- Proper A/B testing with professionally created videos and photos.
We started working on this account in mid-August, and after a week of setup, we implemented our campaign structure.
Thanks to the new retargeting campaigns, as well as the proper combination of Dynamic Ads and best-selling product categories we found on Shopify, these are the results after 3 months.
- _ CPA reduced by 39.8%
- _ ROAS Increased by more than 90%
- _ Purchase Conversion Value Increased by 52%
- _ Feedback Score of the FB Page kept at an average of 4.9/5
In 2021, we've been scaling up the ad spend while keeping ROAS way over the Break-Even Point. At the present moment (May 201), we spend $500/day with an average ROAS of 6.1 on our full-funnel campaign structure.
Over the last 12 months, we've been able to increase the overall Revenue (Social + Direct traffic) by 33% while keeping profitability stable over time.