Food and Beverages

Making Selling Food on DTC via performance ads viable, even with lower AOV! - FabBox


FabBox aims to change the way you snack! With a wide range of healthy yet delicious eatables like ‘Mix Nut Chaat’, ‘Peri Peri Sweet Potato Chips’, ‘Burnt Garlic Cashews’ and many more, FabBox celebrates the foodie spirit of India. FabBox believes the love for food should complement the benefits it has and not otherwise. ‘Quality’ being the main mantra, the ingredients used in the snacks are sourced from highest quality farmlands produced in small batches to maintain freshness. FabBox strives hard to get you the delightful taste in the healthiest way of preparation. From a godown startup in 2015 selling about 20 snacks to a company serving over 70 snacks to 20,000+ customers and conglomerates, FabBox has come a long way in fulfilling their dreams of making India healthier in a fun way. Healthy snacking will always be costlier than its popular cheap alternatives. Top of the funnel campaigns to spread awareness around healthy snacking and then to find the right buyers, who’ll pay the premium price, is a challenge altogether. Given the AOV in Food is relatively lower than other sectors, the cost per acquisition wasnt being sustainable expecially after iOS privacy updates which weakened Facebooks Ad targeting.

Audience Strategy Undertaken

Consumer interest regarding healthy snacks can often be misleading. Everyone wants to eat healthy but few have the determination and purchasing power to follow that path. The audiences were developed taking 3 targeting criteria into consideration, namely past product purchases, customer intent, and customer types. In order to identify customer intent, people located across Tier 1,2,3 cities in India who are interested in gluten free, high protein, low sugar, savory snacks were identified. The customer types identified were health conscious foodie working professionals and home makers. On the basis of these findings, Xpert developed an audience for FabBox to fine-tune its targeting, so as to bring about an improvement in audience response.

Results Achieved:

When tested, Xpert’s purchase history based audience performed remarkably better than Facebook’s interest based counterpart. Ads efficiently shown to the serious health conscious foodies, resulted in a notable 144% increase in ROAS and cost/conversion rates also decreased drastically.

Inferences & Insights

Using platform-level generic targeting criteria around demographics & interests - ends up defining an audience thats too broad to drive a better ROI for brands. Leveraging actual user behavior basis their past purchases, their motivations towards making it (jobs to be done) & the specific types of customers relevant to be served by their product - make this target customer definition much tighter & hence effective in driving brand objectives.

Selling Food via D2C is always challenging, given its lower AOV & Margins.With Xpert, we were able to make our Ad spends viable! - Ameya Ambulekar, Founder