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The health and wellness market is one of the toughest in e-commerce. With so many bad actors in the space convincing people that your product is clean and quality can be a tall task, which translates into more expensive audeinces and lower conversion rates. At $130 price point, this product also wasn't cheap, so we were going to need to work extra hard to find the best possible audiences.
The health and wellness market has a massive TAM, so if we could crack this, the sky would be the limit. We would be able to scale this up into something really exciting.
Our primary paid ads channel was Meta, because this product featured many ingredients and features that people were unfamiliar with, so they wouldn't be searching for them. Instead, we had to find those pockets of people that valued an ultra-clean, super high performance supplement and were also willing to pay a steep price for it since the AOV was well over $100.
We also coupled our audience testing with offer testing, to measure and gauge not only which audeinces responded the most, but which offer got them to convert the quickest.
In the first month alone, we tested 48 different ad concepts and 12 audiences.
Victory did not come easy, but through quick testing and iterating, we were able to achieve a $30 cost-per-acquisition (CPA) within the first 30 days - far outperforming our first month goal. This CPA number was even more exciting considering the fact that the AOV was over $130, and once you factored in CoGS and shipping, the client was highly profitable.
With these baseline numbers in place, we ramped spend according to our plan and in just 4 short months the store was doing over a $1mm annual run rate ($83k monthly) and doing it all while profitable and building a customer base of enthusiastic subscribers.
