Headquartered in Chicago, As of October 2011 the chain had 26 locations and distribution in over 3,000 grocery stores. When my team was hired to help Argo Tea expand their LoyalTea club we knew right away that one of the places we had to focus on was Facebook. The plan was to launch a new app that would replace the old program and get customers to download the app on their mobile devices to participate.
Facebook provides a robust number of tools that allow an advertising user to be very specific in their ad targeting. The Argo Tea Facebook page would give us our customer model and from there we could expand targeting to find similar customers based on things like location, age, buying habits, interests.
From there, we would work to create several campaigns and split test the targeting to see which campaigns would get the best results for the least cost. To do this we set up 20 ads using multivariate testing, but also being careful not to make too many changes and confuse the results.
The overall goal was to reach new customers and convert them into LoyalTea program members as well as make sure that existing customers successfully migrated to the new app.
The results ended up being as expected. A LoyalTea member has a projected lifetime value. Based on that lifetime value, the cost of customer acquisition/ migration ended up being well below what it had been previously, making this campaign a success.
Are you struggling with Social Media for your business?
Having a Facebook page, Twitter account and Instagram are all very important, especially for food brands. Reaching customers who are out there looking to be inspired is critical. If you aren’t engaging people on social media with your brand someone else is. You are missing critical opportunities to communicate with your current customers and find new ones.
If you need help setting up and managing your social media channels don’t hesitate to reach out to my team. We have years of experience managing social media pages, strategy, and paid ad campaigns. ROI for paid ads on Facebook and Instagram (and no, I don’t mean “boosting” posts) can be really good for restaurants and food brands if executed properly. The platforms to build the campaigns are complicated and cumbersome – but you can eventually learn to tame the beast and put it to work for you. If you are looking to get more customers now, we can help.
Michael Osterfeld is the President of The Osterfeld Agency and Mikes Big Mouth Media. He is an expert in digital marketing strategy including social media, search, web and brand design. Over the last 10 years, his sites have created billions of traffic clicks for companies around the globe.
This post may have been written by a staff member and not Michael Osterfeld personally.