Firebelly Tea Doubles Return on Ad Spend with Shop Campaigns

Popular D2C brand Firebelly Tea launched in 2021 with the mission to modernize the tea category and end America’s exclusive relationship with coffee through premium loose leaf teas and steepware. 

Challenge

After testing several marketing platforms, the team at Firebelly Tea found the current customer acquisition space to be costly, high maintenance, and generally not profitable. In search of a solution to scale their acquisition strategy, the team decided to test a Shop Campaign.

A key selling point for Firebelly Tea was the pay-per-purchase model. With Shop Campaigns, merchants only pay when a new customer makes a purchase. Clicks, impressions, and store follows are entirely free, and merchants have full control over their daily campaign budget and cost per acquisition (CPA) limit.

David Segal, Co-founder of Firebelly Tea, explains, "You're only paying for the sale, which is great because you can't lose. The way it's designed, you just can't lose."

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Solution

Many acquisition platforms carry hidden costs, setup and maintenance. Reframing a brand on a new platform, developing creative assets, and monitoring daily spend requires valuable time and resources. Shopify understands that merchants need solutions that help their business run faster and easier. That's why a Shop Campaign can be set up in seconds, and is designed to repurpose assets from the Online Store and accommodate easy experimentation.

"It's pretty hands-off, which is really nice because a lot of other acquisition tools are very time-intensive, creative-heavy, and require you to dig through tons of data. [Shop Campaigns] is more of a 'set it, let it go, and tweak it' model, so it's not eating up hours of our day—which I love," says Kara Westerlund, e-commerce Marketing Manager at Firebelly Tea.

Most importantly, Shop Campaigns can drive meaningful results for brands looking to acquire and retain new customers. 

Results

The brand doubled its return on ad-spend (ROAS), reduced customer acquisition costs (CAC) by over 50%, and customers acquired through a Shop Campaign were 2X more likely to return and repurchase than new customers acquired on other channels. The brand’s Shop Campaigns outperformed almost every other channel in its marketing mix.