LJV Media

2 reasons why 50% of eCommerce brands will fail to hit growth targets in 2024. TL;DR 1. They don’t know their numbers 2. They don’t know their customer == 1. They don’t know their numbers I see this all the time - before onboarding a brand, they usually tell us “We need a 3x to be profitable”. After onboarding them and calculating their numbers together, it turns out that they are profitable with a 1.8x ROAS. After including their software fees, fixed costs, and salaries, it turns out that they need a 2.4x Blended ROAS to be profitable. Without perfectly understanding what your target ROAS, blended CPA, NC-CPA, etc need to be, how are you going to know whether your results are good or bad? You don’t want to run into cashflow issues because you had no idea what your target CPA is so you overspent on a losing ad. Here’s how you can calculate your blended breakeven ROAS: AOV - COGS - Shipping & Receiving (Supplier to warehouse, freight, import) - Transaction fees (usually 2% to 3% depending on payment processor) - Pick & pack fees - Packaging Cost - Shipping & Fulfilment - Warehouse storage - Return Rate in $$ (total order rev/total value of refunds) = Gross Profit (in $$) Calculate your gross profit in %: Gross Profit/AOV Blended Breakeven ROAS (MER) = 1/Gross Profit in % The result here does not take into consideration your fixed costs. 2. They don’t know their customer Another thing I see all the time. The most shocking case is a brand we currently work with. During onboarding, she told us that her ICP is a 30 - 45 yo female. We checked her ads manager and saw that 80% of her sales are coming from a female, 55+... Knowing your customer will help you: - Create a better product - Create a better offer - Improve the results of your marketing My mother will never buy from you if your ad features a 20-year-old girl. She just won’t resonate with that. Here are some ideas to get to know your customer better: 👉 Call them and talk to them. 2-minute phone conversation to thank a loyal customer for supporting your brand and ask what’s the main reason he’s been buying from you for so long. 👉 Post-purchase surveys. Ask people “What are you most looking forward to from your order”. That would tell you what your marketing needs to focus on. 👉 Include a question in your email pop-up. Give them a Mystery Offer but before asking for their email, drop a question that would help you learn more about your customer.

This Ad has generated over $280k & 5m+ impressions for a client of ours. And I want to break it down for you. We’ve been working with this brand for close to 2 years now so we know perfectly well what ad concepts are performing well for them. These are the exact numbers for this ad creative: 𝗙𝗮𝗰𝗲𝗯𝗼𝗼𝗸: Total Spend: $40,066.44 Total Revenue: $111,531.95 ROAS: 2.78x 𝗧𝗶𝗸𝗧𝗼𝗸: Total Spend: $50,796.41 Total Revenue: $173,388.83 ROAS: 3.41x (Yes, I have proof and can show live ad account data) This is how we did it: 👇 First things first, 80% of your success on Facebook will come down to your ad creative. And 80% of the success of your ad creative will come down to your HOOK. And this HOOK does 3 things right: 1️⃣ Captions targeting 1 specific person: “A book I will never stop recommending to those who want to grow”. It is VERY clear who is this for. If you want to grow, and you love reading books - you will stop scrolling. Apart from that the captions change right around the 1.5s mark so that we keep the eye engaged 2️⃣ Engaging visual. Zoom-outs are a great way to keep the attention of the eye - it sparks curiosity - “What else I’m going to see when fully zoomed out” The video is also shot during the ‘golden hour’ near a big window - you want to nail the lighting. 3️⃣ Sound. We’ve added a sound that is relevant to the emotions we want to convey - slow, calming, emotional, positive. We’re seeing that the sound becomes more & more important. Ads with no voiceovers, just music, start to perform better than ads with a voiceover and a creator talking. The next part of the ad is the BODY. We asked the client to ship out the book to our creative strategist so that she could get to know the content of it better. She then decided to go on and film the parts of the book she found the most impactful. After all, what’s the point of TALKING about how great this book is when you can actually SHOW it? We knew our audience would love to see what’s on the inside. The last part of the ad is a simple CTA. But it’s not just “Buy this book now”. We wanted to have a benefit-driven CTA. “Grow more than you could ever imagine” gives you a much better reason to buy the book than saying “Get it now”. I hope this inspires you to create better ads for your brand that actually generate money. We’ve been doing that consistently for the past 2 years for 7- & 8-figure brands so obviously, if you want me and my team to help you scale your eCommerce brand, apply to work with us by sending me a DM.

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