Date:

01 October, 2020

Percko: Back pain product scaling from €4mln to €8.4mln ($10mln USD) & international expansion while doubling ROAS

Leveraging TV ads and omnichannel synergies (Facebook + YouTube + Google)

Brand Story

Percko is a brand that sells posture-fixing t-shirts for men and women. The shirts are designed  to help people deal with back problems without impacting on their daily activities. Percko Developed and patented Tensor technology, which is the heartbeat of Lyne Up. Naturally encouraging the wearer to maintain a more ergonomic posture position, the shirt allows full flexibility of movement and helps support the strengthening of core muscles for long-term relief. One of the main goals was to achieve stable, scalable revenue, month after month, with total ROI of above 5.

Goals

Percko management had huge ambitions for the brand. They wanted to improve profitability and unlock even greater scale to reach 8-figures. To do that, they wanted to massively improve ROAS on all advertising channels, as well as expand internationally, including to the UK and US. 

Results

ROI increased to:

+6.52x

Revenue scaled to:

€8.4mln EUR

Challenges

Despite spending tens of thousands every month on ads, Percko’s campaigns were barely breaking even. The brand was also unable to expand internationally. Their attempts to enter the UK and US were not yielding profit.
Also, recently, the biggest challenge was to keep stable and predictable results while the COVID-19 crisis.
We also noticed a few major challenges – even before the coronavirus arrived.
The Facebook Ads funnel was unclear and the Ads were targeting quite generic audiences with very similar creatives running for years.

When it comes to Google and YouTube ads:

1. Almost all of the campaigns (81 in total) were running on target CPA bidding strategy, but they were set up too low to scale up the best performers. We optimized bidding by decreasing the target CPA in least performing campaigns and increased CPA on the best performers.

2. The campaigns that were receiving the highest spend were not having great results, so we’ve put a hold on some of them and allocated more funds to the best performers.

3. At the beginning, Ads were outdated, meaning that some were promoting previous discounts or actions, e.g. Black Friday, Christmas or New Years Eve.

4. The remarketing campaigns we barely running – especially for cart abandoners. There were only campaigns targeting general users – with no frequency capping, without list cross-exclusions, without excluded mobile apps and without exclusion of people who recently bought.

5. Target ROAS for the most invested shopping campaign was very low, which prevented shopping from reaching higher returns.

Facebook Ads Strategy

Google and YouTube ads

TV ads synergies

Making International Expansion a Reality

We are a French team attacking the French Market, but we had a desire to be much bigger and be able to attack other markets. We were concerned about working remotely, without physical meetings, but it’s working really well! With SalesGenomics we have weekly meetings that are very interesting, very productive and extremely effective in helping us reach our goals.

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