The Story of Tank Air

Tank Air is a high-end fashion/clothing brand based out of Los Angeles, USA. The business focuses on slow-fashion for women, and strives to deliver high-quality clothing with a conscious decision to not “undercut the competition” / “devalue” their own product through sales/discounts. 

The business was established 3 years ago, and has had little to no marketing spends over the year. They have grown organically to reach a monthly revenue of ~$150,000, with consistency.

Tank Air competes with brands like:

• Sandy Liang
• Jacquemus
• Miaou
• Paloma Wool

And has a strong presence on Social Media with 80K+ followers on Meta with a significantly high level of engagement on posts as well.

The Problem Statement

Having had clearly established their product market fit (PMF) through organic channels, Tank Air now wanted to leverage advertising to accomplish 2 objectives:

1. Improve website conversion rate by retargeting (through advertising) their organic visitors who didn’t convert
2. Once their retargeting improves, they want to then open up their top of the funnel traffic, to bring in a lot more cold audiences to the website and increase sales volumes overall

The most immediate and untapped opportunity for them was retargeting on digital platforms.

The key success metrics for Tank Air were CAC (customer acquisition cost) and ROAS (return on ad spend), and our strategy for the business was to help maximise their sales with the cost effective approach of remarketing on Meta.

The Approach - How Tealbox Responded to the Situation

Tank Air averaged at a monthly revenue of $150,000 which was largely through direct and/or organic traffic, without ever discounting their product as well. 

Our goal was to grow the business in a sustainable manner, while keeping a tight watch on the CAC and ensuring a healthy ROAS of 10x or more.

Through various audits and research on their competitors’ activities as well (both organic and paid), we proposed an advertising strategy that clearly outlined tests based on

• Audience
• Ad formats 
• Creative & content themes 

Audience Segmentation Strategy

In reviewing past retargeting efforts, we identified overlapping audience segments within the campaign structures. For optimal results, it was crucial to ensure each audience is distinctly targeted, eliminating any overlap. This approach provided greater visibility and control into each audience's performance. This, in turn, also helps set precise budgets to the most responsive segments.

Behaviour Based Audience Strategy

We strongly recommended targeting the BoF (bottom of the funnel) audience, as those are our high-intent website visitors, who exhibit a stronger inclination to purchase. BoF audiences comprise of people who have been to website, explored products, added something to cart, and then bounced without finishing a purchase.

Additionally, we also highlighted the value of targeting their existing customer base, by creating post purchase campaigns. 

Demographic Considerations

Our analysis revealed that, while the ads previously had an open targeting to all age brackets, the most noticeable impact was on the 18-34 age group. To maximise efficiency and minimise unnecessary expenditures, we recommended that the campaigns are specifically tailored to this age demographic.

Ad Formats And Creative Themes

Since the focus was on retargeting ads alone, we recommended testing the “Catalogue” ad format on Meta to ensure that the product feed for the users was personalised in terms of users’ activity on the website. 

In line with the business’ minimal approach to design, the copies to were kept crisp, with a clear messaging to communicate:

• New styles
• Brand’s ethos 
• Best sellers

The Results: 2x Turnover Post Advertising‍

Uptick in Top Line Sales:

With a daily ad spend of $150, Tank Air’s business saw an immediate improvement in Shopify Sales after the launch of ads on Instagram with a MoM growth of 54% in sales. 

With an incremental 120-140 orders on a weekly basis, Tank Air generated an additional $20,000-$25,000 in gross sales each week. 

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The brand received close to 100 purchases each week through ads, which includes sales from MoF, BoF and Post Purchase audiences. 

The ROAS for the brand also remained healthy, averaging at 17X, while the CAC averaged at $13 only. 

Improved Conversion Rates:

The online store conversion rate for the business increased from an average of 20% to 22.35% in July 2023

Conclusion 

Even for brands that have primarily grown organically, there is clear evidence in terms of the incremental growth that can be achieved through retargeting efforts alone. 

Tank Air invested $150 daily and saw a significant 54% increase in sales month-over-month. This uptick has given the business an additional $20,000-$25,000 in weekly revenue. 

Through advertising on Meta alone, the brand has had a steady 100 purchases each week at a sustainable CAC of $13.00 and a ROAS of 17. Additionally, the online store conversion rate, a critical metric for e-commerce, also saw an improvement from 20% to 22.35%. 

These are clear indicators of how TealBox's approach to retargeting audiences has not only re-engaged Tank Air's website visitors but also converted a significant number of them into paying customers.

If your business can relate to the success story of Tank Air and you're looking to achieve similar results through remarketing and advertising strategies, don't hesitate to contact Tealbox. We have the expertise and experience to help you grow your brand and boost your sales. Reach out to us today to discuss your specific needs and goals. Let's work together to take your business to the next level!