NEOH

CASE STUDY 

Product Blitz’s advertising Campaigns for neoh has resulted in a 2x return on ad spend and hundreds of new customers a month.

TOPIC:

Product Blitz was hired by Neoh, a protein bar company, to create a scalable digital advertising strategy. This was done (and still happening) using Facebook advertising and Messenger chatbots.

The Desire:

Neoh USA was launched in February 2018 as the perfect mix between a protein bar and a candy bar. In order to achieve the results they wanted to compete with the top brands, they desired an advertising strategy that was both reliable and scalable. In other words, a systematic way to grow their revenue that is cost effective.

The Problem:

Before Neoh hired Product Blitz, they had been running advertising campaigns on Facebook for several months that yielded little to no results. As with most companies advertising on Facebook, they lacked the proper execution towards acquiring customers, which is detrimental to growth long-term. And then it all changed.

The Strategy:

For most e-commerce businesses, Facebook advertising is the way to go towards scaling revenue, which is the approach Product Blitz took. But we have done so in a way that is very unique that nobody else is doing.

Here’s an example of what our Facebook advertising strategy looks like:

This is basically our entire advertising strategy is a nutshell.

Let’s go through it piece by piece:

The Targeting/Positioning:

We’ve tested countless different audiences, creative angles, and written text. The advertising of this product performs best when we’re targeting fans of the ketogenic diet and positioning Neoh as the ideal companion for it. Neoh is also very appealing to athletes/ gym people, which is why we talk about macros in the advertising.

The Ad Imagery:

This particular image has been chosen for very strategic reasons. For one, it’s appealing to see Neoh having much better ‘nutritional facts’ compared to a popular candy bar, especially if you’re on a diet or are health-conscious. It catches people’s eye. But a large reason why this ad performs so well is because the image purposely has text cut off at the bottom. People want to see the rest of the comparison, so they end up clicking. If the image text is not cut off and instead fully shown, the cost-per-click is 3x as expensive. Amazing.

The Chatbot:

Using a chatbot and sending people directly to Facebook Messenger has been a game changer. As you can see at the top, they are prompted to tap the ‘view on Amazon’ button, which they believe will take them to the website. But instead, there’s another step first where it gives them a coupon code. The viewer didn’t know that originally. After the coupon message it takes them directly to Neoh on Amazon to purchase after they click the ‘view on Amazon’ button a second time.

24 hours later they are automatically reminded that their coupon code expires soon. This is an easy way to remind people who might have forgotten!

Here’s another message the chatbot sends:

Facebook has a policy where you can’t send promotional messages on Messenger more than twice in a row after a user subscribes to prevent spam. However, we still wanted to engage our existing subscribers after that follow up message to redeem the coupon code and get them to purchase if they haven’t already.

One of Neoh’s investors wanted to do some market research to determine which packaging people liked better, which gave us the idea to incorporate it into the chatbot. It essentially crushes two birds with one stone because we’re getting valuable feedback and at the same time re-engaging the audience without it being categorized as spam or promotional. And of course, after they vote they are prompted to use an alternate code if they haven’t bought yet. The entire reason this survey was implemented here was to send that last message to remind them to purchase again. It took some creativity to figure out how to smoothly do that in respect to Facebook’s policy. Plus this message has a 20% click through rate, which is ridiculously high at this point in the funnel.

The Result:

It took some time, but after lots of testing and optimization this campaign is working very well. We’re currently getting a 2x ROI. So for every $1,000 we spend on Facebook, we’re generating $2,000. Neoh is a consumable product with a 35% repurchase rate, which means the customer lifetime value is high, so we don’t need to make a significant margin on acquiring a customer initially. Though the plan is to continue to get even better results than this so we can afford to spend the type of money to compete with much larger competitors.

Why It Has Worked:

Consistent Testing & Optimization:

At Product Blitz, we care deeply about our customers’ success, which means we did everything under the sun to create an efficient Facebook strategy. We’ve tested 50+ combinations of text, imagery, audience targeting, and chatbot UX flows. Our best performing ad sets are getting just $0.07 a click and chatbot opt-in rates upwards of 20%. This has allowed for a profitable campaign.

Chatbot Utilization:

Using chatbots has allowed us to engage with 10,000+ new subscribers on a personal & dynamic level. The ability to weed out buyers with low intent and intelligently distribute coupon codes has allowed engagement rates to result in hundreds of new customers a month.

Customer Research:

Through tens of thousands of dollars in ad testing, we have a strong idea of who the ideal customer is for Neoh and the types of messaging that best resonates with them. The result is lower acquisition costs.

A Great Product:

At Product Blitz, we can’t take all the credit. Neoh has developed a protein bar with product-market fit, which makes our life easier. Neoh is a product that people want and with 100+ positive reviews on Amazon, there’s a level of trust & authority built with the target customer.