Linens ‘n Things(LnT) was a Clifton, New Jersey-based big-box retailer specializing in home textiles, housewares, and decorative home accessories. The chain operated 571 stores in 47 U.S. states and six Canadian provinces and had 7,300 employees as of December 2006.
LnT spends around $100,000-$160,000 each month on media buying on Facebook platforms with an average of 2.25 ROAS. Since the central niche of LnT is home decoration products, the price range starts from $15 to $3000, and most of the products are below the $500 range.
In this case, we will discuss a vanity dressing table – PlayStation Plus 2.0 Tabletop + Vanity Mirror + 5 Drawer Units Bundle Set. The price of the product is $1397 with free shipping.
Fig: Vanity Dressing Table.
It’s a bit challenging to sell a product at that price range online unless the customer feels the actual worth of the product. The starting plan with the product is a $105 ABO campaign with seven handsets and four ads each. The performance wasn’t that impressive in the first phase. Why is that? Let’s move with the creatives first:
Fig: First Campaign Creatives.
But after that, video content was added with a review featured by a lady, and among all the ads, that one has started doing better performance. But it didn’t end here. After the first and second campaigns, the budget was increased in the third campaign with CBO, and eventually, the movement started even better. But the best outcome returns with the retargeting ads, with 15% discounts.
Fig: Ad Manager View.
The new campaign was declared with a 15% discount to the people who have visited the website page (Excluded the purchase ones). But it showed the view of “Less than 15 Available” with the term FOMO (Fear of missing out), and the sales have exploded. Here in the ad manager, the result was extremely visible with the active ads, and so far, the product has sold over 1000 pieces with more than 5+ ROAS, whereas the BreakEven ROAS was 2.
Read more about another case study Boosting ROAS From 1.09 to 5.7 With Proper Creatives & Ad Copy – Case Study.
So what key factor worked overtime with an expensive product like this? Here are the elements:
- Expensive products like these are hard to sell online unless the audiences feel the worth of the product. Images are not a great option on this, but a video played the best role here where the audiences can check whether the product is worthy or not.
- A review-based content with benefits worked better than regular video content.
- Ad Copies that described an issue and how the product could solve the problem perform better than regular highlights.
- FOMO based titles performed better than regular descriptions (e.g, “Offer ends by 12 am”, “Limited in Stock,” “Less 15 In Stock”, “Only for Today”)
- Retargeting with a discount percentage was the game-changer here. A 15% Discount with a free delivery offer for a limited time helped the most grab the audience’s attention here and provoked them to make a purchase.
- New video content on retargeting ads helped decrease the Cost Per Purchase (CPP).
- All the retargeting ads were targeted with “Purchased” excluded.