Date:

16 March, 2020

Whisky Loot: Subscription Box Scaling from $300 Spend to 7 Figures in 5 Months

Brand Story

Whisky Loot sells hard-to-find whisky samples within a monthly subscription box. The company provides gamified whisky tasting experiences that drive a deep understanding of whisky through monthly tasting boxes accompanied by sommelier notes.

Goals

Their business model relies on consistently acquiring new subscribers at significant scale while at the same time bringing one-off gift purchases that provide free cash flow that pays for subscription acquisitions. Therefore, Whisky Loot needed not only to scale their subscription campaigns while maintaining profitable CPA, but also establish a cold traffic acquisition funnel for gift purchases.

Increase in Weekly Ad Spent

+610%

Client Revenue

7-figure

Max Facebook ROAS

x6.4

Results

  • Scaled the campaigns from spending only $300 per month to profitably spending over 10k per month, while staying within the target CPA of $50 
  • The client demonstrated growth and CPA metrics that helped them secure another round of funding from investors
  • Backend revenue reported plenty of unattributed sales, and accumulated monthly recurring revenue from acquired subscribers. This effectively launched the client above the 7 figure mark for the month of December
  • Built a solid foundation for further scale

Facebook Ads Strategy

The Campaign

  • However, we didn’t stop there. We already had a Father’s Day promo that would ideally fit the client’s gift box. After the initial test with the subscription boxes and deciding on the winning audiences, we decided to put them all in a non-cbo campaign in a single ad set and test them with a pre-made promo post that was already running organically on the page. Our strategy was simple—verify the audience with small budgets and if it shows positive results, scale the heck out of it, as the offer was time-sensitive. In the first week, we hit x6.40 ROAS.
  • Based on the result we proceeded as we planned—starting to scale. On Week Two we were able to add an additional 1000%+  to the budget, scaling it from $50 to $533 in 7 days, preserving the ROAS at 5.42 and achieving the goal of hitting 50 sales in two weeks that was set by the client before the launch.
  • In the meantime, we continued with promoting the subscription box optimization. At the end of week two, we had a winning audience—creative and copy working in a match together.
  • During the last week of August, we started scaling. We knew that we could afford a higher CPA and so we took advantage of it. We left only one winner in our testing campaign to run with the whole daily ad spend—dedicated to it only—and we started expanding placements and audiences to end August with 84 subscriptions at 1.97 ROAS.
  • At this point, we started to add more budgets to the campaigns with the idea that we could sacrifice ROAS, as the average LTV of a customer is 3-6 months (or $200-$400). By mid-September we were able to accumulate 254 sales at x1.12 ROAS, which meant that with $12,400 ad spend, the client was  on their way to 7-figures, and scaling the weekly budget from $600 to $4300 (610% increase in ad spend) in 5 weeks.
  • Beginning in September we launched periodic promotion campaigns such as Whisky Advent Calendar, Black Friday and Christmas gifts that kept driving cash flow while we scaled subscription campaigns.

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