Return on ad spend
Foodbox is a grocery home delivery business based in Auckland, they service the main city centres across New Zealand. Foodbox was the first business in the country to offer food delivery in NZ, back in 2009. They’ve seen a huge rise in competitors as the meal-kit industry has developed in the last few years.
We’ve been running Facebook ads for over 10 years. Richie was able to generate a better return on ad spend than we have ever been able to achieve in-house. We are now profitable on the first order that a new customer places.
Foodbox was an early adopter of Facebook ads as one of the first to use the platform when it was released in New Zealand. They’ve used Facebook as their main source of generating customers for 10 years. Unfortunately, the fierce competition in the meal-kit industry resulted in a higher-than-expected cost to acquire and required much of the focus, energy and budget. It typically took 4 or more orders from a new customer before they were profitable. The challenge was to reduce their cost to acquire and meet a minimum return on ad spend to become profitable more quickly.
The Foodbox website was outdated. The conversion rate was low because people were having a hard time finding the information they needed on the website. Something needed to be done to streamline the process and increase the overall number of leads.
I first tackled the issue of a high cost to acquire by implementing a smart bidding strategy that allowed us to minimise costs and selectively bid on audiences with the highest purchase intent. This new strategy helped more than double conversions while bringing down CPA by 50%. More importantly, we had freed up more budget to dedicate to re-engaging customers who had previously purchased, turning them into repeat purchasers week after week.
I implemented conversion rate best practices on the pages where traffic landed, resulting in improvements that naturally created a path from website visitor to Foodbox customer. Once the content was conversion-optimised, we could confidently invest our budget in more traffic and convert a high percentage of them into customers.
Foodbox is now profitable on the very first order a customer places.
- Return on ad spend of 900%
- Increased customer retention by 500%
- Increased traffic 300%