Solved: Sales Plateau for Bespoke Dog Collar eCommerce Business

Hi there,

Thanks for reaching out. I'm happy to give you some initial thoughts and guidance on your D2C eCommerce business selling dog collars and leads.

We'll need to look at your data...

It's great you're thinking about paid advertising, but before you even get to that, I'd say its important to look at your data properly. Instagram is good for pretty pictures, I get that, but you need to think about what's actually turning into sales. I have a few thoughts on what you should be focusing on:

1. Ditch the vanity metrics: Instagram followers are great for ego, but they don't pay the bills. You need to be looking at concrete conversion data. What's your average order value (AOV)? What's your customer lifetime value (CLTV)? Knowing these numbers is absolutely crucial because it tells you how much you can realistically afford to spend to acquire a customer. If your AOV is £50 and your CLTV is £150, you know you can spend up to £50 (or maybe a bit more if you are patient) to acquire a customer and still make a profit. That's a starting point for any advertising strategy.

2. Customer Segmentation: Dig into your existing customer data. What breeds are people buying collars for? Are they all spaniels or are there other dogs out there? What's the average age and location of your customers? Understanding who your current customers are is the first step to finding more people like them. You'll be needing to lookalike audiences later, trust me.

3. Geographical Trends: Are there any geographical trends in your sales data? Do people in certain London postcodes buy more high-end dog collars than others? It might sound mad, but you can use this info to target your ads more effectively. Think about it: richer areas may be more inclined to get expensive collars.

I'd say you should focus on the ROI...

ROI is a tricky one, and there's no magic number I can give you. It really depends on your product, your target audience, and how well you optimise your campaigns. Six months in business is still early days, so don't expect miracles overnight. However, with a high-end product like bespoke dog collars, you should be aiming for a decent return. I'd say aim for a 2-3x return on ad spend (ROAS) initially, and then work to improve it from there. So, for every £1 you spend on ads, you should aim to make £2-£3 in revenue.

Here's the thing: this is a starting point. You can (and should) optimise your campaigns to get a higher ROAS over time. But it's important to have realistic expectations at the beginning. Don't get discouraged if you don't see results immediately. It takes time to dial things in and find what works best for your business. Also, make sure you track *everything* religiously. Without proper tracking, you're flying blind.

I remember one subscription box client where we achieved a 1000% Return On Ad Spend with Meta Ads. So don't underestimate the power of niche targeting, it works. It all comes back to the data.

You probably should look at your Instagram...

You mentioned that your Instagram is pretty, but doesn't seem to be translating into conversions. This is a common problem, and it's something you need to address. "Pretty" doesn't always equal "effective". Think about your content strategy. Are you just posting nice pictures of dogs in your collars, or are you actually trying to sell something? Are you using strong calls to action? Are you making it easy for people to buy from you? Your instagram has to lead to action. Maybe people need some promo codes? I'd also say it's a good idea to look at your website analytics. Are people clicking through from Instagram but then not buying anything? If so, there might be a problem with your website. Is it easy to use? Is it mobile-friendly? Is it trustworthy?

You'll need to test some ads...

I remember one campaign we ran for a luxury brand launch using Meta Ads, and it generated 10 Million Views, so Instagram can do the business.

To start, I'd recommend testing different campaign types. You've got some options here. E.g. with search ads, you can target people searching for specific types of dog collars. With PMax, you'll get some display placements too.

Look at your performance metrics to see what's working. Where do people drop off? If you've got really low CTRs and high CPCs, then your ad copy/product images likely need work. If you get visitors to your start page but only a small percentage of product page views, then either you're getting the wrong type of traffic, or maybe the products features aren't a good fit. And if you get lots of product page views but no adds to cart, then it's likely your product photos, product descriptions, or pricing needs work. Maybe a special offer could help.

This is the main advice I have for you:

Scaling a D2C eCommerce business is a real challege, and there's no one-size-fits-all approach. Sometimes its worth using the experts. If you get stuck or need more in-depth help, don't hesitate to seek expert assistance. We're always happy to offer a free consultation to discuss your specific needs and challenges and see if we can work together.

Regards,
Team @ Lukas Holschuh