ADKINGS CASE STUDIES

5 Growth Strategies To Scale A Subscription Brand From $50k To $150k A Month!

In the Best Case Studies, the Results Speak for Themselves. Here Is a Sneak Peek:
The results are undeniable . . .

✔ Generated $752,418.41 in sales

✔ Increased monthly revenue from $50k to $150k

✔ Boosted ad spend from $26k to $70k in 3 months
Introduction
A subscription-based business model involves the customer paying a recurring fee in exchange for the regular delivery of a product or service. It removes the hassle of repeatedly buying a staple product. This type of business format has many perks and some unique challenges.

Our client’s brand solely promotes one product; a healthy skin probiotic. The average customer spend on a one-time purchase was relatively low. However, on subscription, this skin revolution brand averaged five orders making the customer's lifetime value (LTV) profitable - and predictable!

At AdKings, we understand the unique marketing tactics required to procure new customers, remove contract hesitancy and maintain interest. We boosted our client’s revenue from $50k to $150k a month using these 5 strategies!
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5 Strategies That Scale A Subscription Brand

1 - Facebook Structure & Audience Strategy

The moment we start a new brand partnership, we jump right into testing and experimenting with new ideas.

Finding a winning strategy takes a LOT of trial and splash of error.

Once the data started rolling in, the focus shifted from trying many different things to efficiency and managing a profitable CPA.

We decided to entirely consolidate their ad campaigns and focus on the Facebook Power 5 Principles - a strategy for structuring and leveraging advertising campaigns.

We went from 11 campaigns, 36 ad sets and over 100 ads to just two campaigns! This allowed for more efficient testing and enabled us to target what was converting.

Of the two campaigns, the first was the main focus consuming 95% of the ad budget. We used a broad targeting approach with 3-4 dynamic ad sets to captivate a large audience. 

We also set one ad running previously successful creatives as a control. This provided us with the data to determine if our new dynamic ads were working. 

The second was a retargeting campaign using the remaining 5% of the budget. This focused on converting customers that might have slipped through the cracks at a limited cost. Not only was this cost-effective, but it increased brand recognition.

Currently, we have fully consolidated, running only one campaign with four dynamic creative ad sets. This is the sweet spot for our subscription-based client. We have nailed down what’s effective and are focused on scaling.

2 - Compelling Creatives

The creatives are undoubtedly the most crucial components for scaling any business. They make a product stand out, create an emotional connection with the audience and build brand awareness. 

They need to convince the audience that they not only want the product; they NEED it. 

Customers are purely motivated by what benefits them. A product may be the best in its class, but if a customer can’t see how it improves their life, they will scroll on past. 

This is why understanding the target audience’s pain points is so important. 

What are their struggles? What kind of solution are they looking for? What are their hesitancies? 

In our client’s case, their audience was searching for a solution to problematic skin. We led with that pain point showing how their product was uniquely qualified to improve their skin. 

This was easier said than done while ensuring it was Facebook-compliant. Facebook has a lot of rules in place surrounding the promise of results. 

We used a successful hack to sneak in before and after photos in our client’s creatives - DCT.

DCT, personalized dynamic creatives, are ads that change to show content and promotions to users who have shown interest in a specific product. 

Since there is more flexibility with DTC, we were able to avoid Facebook rejection, while  pushing our message. 

We also focused on high-quality UGC (user-generated content) and informative videos. High-impact ads that showed the product benefits from a professional and customer point of view. 

3 - CPA Vs. ROAS

Two of the marketing metrics we use to measure success are CPA (cost-per-acquisition) and ROAS (return on ad spend). 

When working with subscription-based models, we focus more heavily on CPA.

Why?

ROAS only factors in the customer’s initial purchase, not the lifetime value (LTV) of a customer. This leaves us with an unfavourable number - which is inaccurate! 

For example, imagine there is a protein powder company operating based on a subscription model. Their protein powder costs $20 and lasts for one month. If we were using ROAS we would be comparing their ad spend to the $20 purchase.

However, in a month, the subscription will renew, and the customer will be charged a second time. And yet, the brand did not spend any more money advertising to them. 

Thus, while the initial ROAS might have looked poor, factoring in the TOTAL cost of acquiring the customer (CPA) reveals the true picture.

We know our client’s customers average five subscription purchases, which is significantly more revenue than their first purchase. So, we used that value when measuring our marketing success. 

We started with a Facebook target CPA, essentially at a break even. Factoring in future purchases, we could acquire customers at a stable cost and have projectable results. 

4 - Landing Page 

All of our marketing efforts guided traffic straight to their landing page. Landing pages are an incredibly effective tool for businesses to generate leads, increase conversions, and ultimately make sales. 

They are created to serve a single purpose – directing visitors to make a purchase. 

By targeting specific keywords and demographics, landing pages become an invaluable asset for advertising campaigns. 

Most importantly, they help to reduce distractions and create a clear call to action, encouraging visitors to stay on the page - increasing the chance of conversion. 

5 - Bundle Sale Incentive

With Black Friday approaching, we created a new bundle incentive - $50 off 3 bottles of probiotics. 

Not only was this a huge win, but we expect 50% of these customers to become subscribers within three months. 

Additionally, the success of this bundle sale informed us that another subscription option was needed - the 3-month subscription. This option is perfect for those who are hesitant to commit long-term. 

Sales incentives are valuable for creating a sense of urgency and a reason to buy. There is also the possibility of discovering a new marketing angle along the way!

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Conclusion

Scaling a subscription-based business is achievable by focusing on these key strategies:

✔️Consolidate marketing campaigns & focus on broad audiences 

✔️Persuasive creatives that lead with customer pain points

✔️Understand the break-even CPA factoring in the customer's lifetime value

✔️Direct traffic to a powerful landing page that converts

✔️Strategic sale incentives 

Thanks to our marketing setup and CPA insights, we can predict our client’s revenue 30 days in advance. 

Now our focus is on customer retention and scaling to the moon! 

At Adkings, we are the masters at analyzing ad campaign performance. We use the power of numbers, strategic angles and customer-focused creatives to skyrocket our customer’s results.

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