Case Study: 1,436 Purchases at $5.29 CPA

Hey, it’s Patrick.

Have you ever seen brands run “free, just pay for shipping” or “sample pack” offers?

Today, I want to showcase the results from a sample pack campaign we ran last month for a functional food brand and break it down for you.

Main highlights:

• Ad Spend: $7,590.02

• Purchases: 1,436

• Cost Per Action: $5.29

• ROAS: 1.26

With a campaign like this, our primary focus isn't on ROAS. Instead, we're laser-focused on acquiring customers at the lowest possible cost.

But Patrick, how do I make money?

Patience, young grasshopper. Let me explain.

This strategy only works if you understand the importance of proper retention and upsells.

Our goal is to acquire customers at a low cost and then get a percentage of them to purchase a full order within the first 90 days.

Let’s break down the math:

We spend $7,590.02 on ads in a month to acquire 1,436 new customers at $5.29 each.

Once they purchase, they're added to our Klaviyo email flows, receive SMS texts from us, and become a customer on our Meta Pixel.

Now, let's say 20% of those 1,436 customers make a $50 Average Order Value (AOV) purchase within 90 days. That’s 287 customers multiplied by $50, resulting in $14,360 in sales.

Imagine you continue to execute this strategy properly. Some customers subscribe monthly, others buy every few months, and they LOVE your products.

At this point, we can gain an understanding of your customer’s lifetime value (LTV). If your LTV is $150 within the year, a $5 acquisition cost makes perfect sense!

This is how loss-leader, low-ticket offers work.

I preach this often, but I frequently see brands execute these strategies poorly, with no understanding of backend retention.

For a more detailed walkthrough, check out my YouTube video [here].

Keep pushing forward,

Patrick O’Driscoll