Littleton Coin Increases YoY Revenue by 35%
& YoY Conversions by 20%
Social Media Advertising
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Since 1945, Littleton Coin has been providing high-quality products for collectors and hobby enthusiasts. While primarily a catalog-based company with the majority of their business still in print, the brand recognized and understood the importance of ecommerce brand awareness. In the spirit of exploration, they were looking for new ways to nurture upper to mid-funnel points of the conversion path and curate a personalized user experience.
After seeing rising year-over-year cost-per-actions (CPAs) during their prime seasonality, the ROI Revolution team proposed testing a new best practice from Facebook: signal-based marketing.
What is signal-based marketing?
To get shoppers from “just browsing” to buying, this structure uses signals by applying the Facebook Pixel to gather insights and better understand shoppers. It then combines audiences into consolidated ad sets and optimizes that group for different stages in the funnel, inspiring shoppers who like to take their time and expediting the process for those who move quickly.
This new campaign structure would allow the team to introduce the brand at different stages of the funnel and show relevant messaging and content to consumers based on where they are at in their buyer journey.
While this test required an entire account overhaul and reduced visibility to analyze user group performance, the benefits of increasing revenue by enhancing the full funnel user journey were well worth the risk.
Our Expertise in Action
Previously, the team would segment different audience groups to be optimized for traffic or conversion. This time, the team put all audience groups into one bucket and utilized automation to optimize for different actions. Consolidating audiences created a much larger pool for the algorithm to choose from and optimize audiences at specific spots in the funnel. In addition, the algorithm would optimize ad spend for the brand by bidding on the most valuable customers and opportunities.
The ROI team implemented signal-based marketing for Littleton Coin in May of 2019. After the necessary learning period needed for machine learning to kick in, the brand saw an immediate 17% drop in CPAs month-over-month and reduced volatility throughout the remainder of the year.
Additionally, the team has been able to consistently outperform growth despite minimal increase in spend, with revenue increasing YoY by 35% and conversions up 20% YoY.
Ecstatic with the results seen and the fact that they’ve remained steady regardless of seasonality, fluctuations, or promotions, Littleton Coin has begun to shift their internal mindset to expand more into ecommerce digital marketing.
YoY Revenue Increase
Drop in CPAs Month-over-Month
Conversion Value Increase
Educate Buyers Throughout Their Journey. Understanding the unique behaviors of your shoppers through your own data is vital. With signal-based marketing, you can understand the actions and motivations of your audience and create more effective ad campaigns, targeting the right people with the most relevant creative.
It Takes Time to Optimize. As this structure utilizes machine learning, it requires time to learn before you receive conclusive results and truly understand what your performance will be. While it depends on your spend level, at a very minimum, you should give the algorithm two weeks to learn and optimize.
The Importance of CPAs. Fluctuations and average order values (AOVs) can sometimes skew what you’re looking at for ROI or ROAS goals. CPAs can give a good indication of whether you’re growing in terms of YoY users – not just monetary growth. In general, as more competitors enter your space, CPCs and CPAs are going to rise, but by increasing your audience and implementing best practices, you can help combat that to reach more consumers and lower those CPCs.
Don’t Test During Seasonality. If you’re looking to test signal-based marketing, avoid testing close to your seasonality. You’ll want to ensure a few months of buffer room. In terms of best practices, you’ll want to give it at least a month for strictly testing, and then a second month to see what it’s actually doing. That way, if you need to change strategy, you’ll have time to let that kick in.
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