Root & Soil

How server based custom conversion event helped to lower nCAC by 24%

Change in optimization strategy helped us increase our revenue by 40%

About the

Brand

Root and Soil is a company offering natural and science-backed baby skincare products, formulated with safe, effective ingredients for gentle care.

Objective

The primary objective was to use meta as a pure new customer acquisition channel for the brand which meant we had to optimize for nCAC.

Background

We initially excluded 180 pixel purchasers & entire customer list, the idea was to be able to see the new customer performance.

Over time we saw even though the ROAS was good on the dashboard, our new customer revenue was stuck.

But unfortunately there was no visibility on the dashboard level.

Implementation

That’s when we implemented a server side (CAPI) custom conversion event.

The idea was whenever a new customer would purchase the pixel it would fire and record the data. As we were using CAPI, we knew the data would be as accurate as it can get in the post IOS14 era.

Because of that we were able to track metrics like:

Optimization

Instead of optimizing for ROAS, we started optimizing for the nCAC on the dashboard.
We set the kill nCAC at ₹550 which meant in prospecting campaigns anything higher than that will be paused, given the overall ROAS was also below our account target of 2.2.
But for ads which had 2.2 or higher ROAS but did not have nCAC lower than ₹550, we did not scale the ads, just kept it there.

The idea was to train the machine learning algorithm to focus more on new customer acquisition.

Results & Analysis

With in 7 days of following this optimization process we saw our nCAC improving and at the end of 2 weeks this is what we achieved:

Before nCAC was ₹837

Current nCAC is ₹636

24% drop in nCAC which is ₹201 less than before

Takeaways

Meta dashboard ROAS may not be 100% accurate even when we exclude certain audiences.

In this case all the prospecting campaigns had exclusions, but unfortunately we were still getting purchases from repeat customers.

The best way to get this visibility is to use the server side custom events.

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