Challenges

Part&Parcel, despite its vast organic product range, faced the uphill task of maintaining profitability amidst tight margins and the complexities of optimizing for a huge array of products.

• Slim Margins: Their decision to offer products at the best possible prices led to incredibly low margins, making it challenging to maintain a profitable ROAS and breakeven CPA at $30.

• Cash Flow Constraints: The low margins restricted the cash flow necessary to scale their account and campaigns.

• Diverse Product Range: With over 1000 products, all priced low, finding an efficient campaign optimization strategy was daunting. No single product or group showed distinct performance advantages, leading to a levelling effect that further complicated campaign prioritization.

Solutions

Recognizing the challenges faced by Part&Parcel, the Blue Sense Digital team acted swiftly with innovative strategies to harness their vast product range and tight margins, turning potential weaknesses into strengths.

• Consolidation of Campaigns: We trimmed down their multiple campaigns, creating a single Performance Max Campaign complemented by a Brand Search Campaign. This consolidation allowed for a healthier spend-to-asset ratio and more efficient campaign optimization.

• Systematic PMax Campaign Structure: Initiating the PMax campaign from scratch, we adopted a systematic approach. Starting with 5 consolidated asset groups, we gradually expanded, introducing 2-3 new, more segmented asset groups monthly, tailored around top-performing individual product categories.

• Comprehensive Facebook Testing: Our strategy also emphasized extensive testing on Facebook, encompassing campaign structure, interest targeting, creative and copy testing. We doubled down on structures that showed promise, adjusting the focus based on performance metrics.

Open and Regular Communication: Ensuring that strategies aligned with Part&Parcel’s brand vision, we established a robust communication regimen. Daily written updates on Slack, regular video performance updates, and fortnightly strategic Zoom calls bridged our strategic expertise with the client’s brand insights.