An efficient and effective food ecommerce marketing plan.Facebook Ad Audit Download

That’s what you’ll discover as you read on…

…but don’t overthink it, because it really is quite simple.

Ecommerce is the final frontier for the food and beverage industry.

Today a little over 2% of sales come from the digital space.

But things are changing…

Now 82% of the growth within food and beverage is coming from ecommerce according to Nielsen.

Food Marketing Institute (FMI) and Nielsen noted that 70% of consumers will be grocery shopping online by 2022-2024.

I recently analyzed two national brands and their biggest competitors to see why their competitors were outpacing them in the digital space.

One is in the olive oil category, the other in the snack bar category.

While all brands are currently engaging in digital marketing activities, the ones truly dominating their category within ecommerce share one thing in common.

The ABC Formula.

Before I reveal this simple formula, let’s take a look at 3 challenges these two brands are facing…

Are you also experiencing them?

3 Food Ecommerce Brand Challenges

1. Low ROI

Does it cost you more to acquire a customer online than the sales they bring in?

Food and beverage brands struggle with netting a positive ROI on their marketing efforts because of the cost to acquire a customer online.

2. Little to no repeat customers

Are you seeing few customers returning to purchase again and more frequently?

It costs more to acquire a new customer than to get your previous customers to return. If you only focus on getting new customers, but not keeping your existing, your efforts are ultimately wasted.

3. Difficulty converting traffic into customers

Is the traffic you’re driving to your store converting into sales?

Running Facebook or Google ads guarantees traffic, but does not guarantee the sale.

What is the ABC Formula?

The ABC Formula is a simple framework to focus your marketing and sales efforts on the only 3 levers that will grow your food and beverage brand:

  • Average order value (AOV)
  • Buyer frequency
  • Customers

If you can double, triple, or quadruple each, expect 6x, 9x, or 12x growth.

Provided you’re already well positioned and creating a strong brand, these three factors are all you’ll need to focus on.


Because it maximizes your sales value and sales volume.

Ie. Your customer LTV will increase!

This guide will teach you how to implement this food online marketing plan for your brand…

1. Average Order Value

increase average order value

Increase the average order value of your customers.

Average order value (AOV) is an ecommerce key performance indicator (KPI) that measures the average amount spent of every order over a given period of time.

Calculating the AOV presents you with insights on how well your marketing efforts are performing by showing you how much revenue the average customer is bringing in and the amount of products they may be buying in a time period.

This is crucial info.

These insights shed light on whether customers are buying multiple items and what products make up the bulk of sales.

So you see the importance…

AOV will drive decisions for what products you offer, how you allocate to advertising budgets, and product pricing.

How to calculate AOV:

Average Order Value (AOV) = Revenue / Number of Orders

Ex. A customer places orders for three shirts valued at $45, $50, and $70. The AOV is $55.

Pro Tip: It’s best to measure this KPI on a monthly basis.

Why increase AOV:

Increasing average order value brings in more revenue and increases the average value of a customer.

As AOV increases, the amount you’re able to allocate on marketing can also increase. This is important because the more you’re willing to pay to acquire a customer, the more dominance you’ll have over your competitors.

That’s right, I know what you’re thinking…

How can I increase my average order value (AOV)?

How to increase AOV:

So now you know the importance of raising your AOV is. But how do you do it?

From a strategic point of view, it’s important to segment your customers based on low, medium, and high spenders or based on other factors such as types of products.

Based on each segment, target them specifically with some tactical ways to raise AOV:

  • Create various bundles and bulk packages
  • Offer post-purchase upgrades, up-sells, and cross-sells
  • Allow free shipping with a minimum order

Pro Tip: Only test each tactic one at a time to accurately measure results.

2. Buyer Frequency

increase buyer frequency

Increase the amount of times your previous customers return to purchase.

Buyer frequency is the number of times an existing customer returns to make a purchase.

You already have existing customers that you worked hard to get…

…why not have them come back again?

It’s important to continue the relationship with your existing customers to nurture them into brand advocates because then they’ll provide word of mouth referrals to your brand.

How to calculate buyer frequency:

Buyer Frequency = Number of Orders / Number of Customers

Ex. Last month you had 2000 orders from 1000 customers. Your buyer frequency equals 2.

Pro Tip: It’s best to measure this KPI on a monthly basis.

Why you want to increase buyer frequency:

Increasing buyer frequency is important because acquiring a new customer is more difficult and expensive than to get an existing customer to repeat a purchase.

Raising frequency of purchase creates brand loyalty and is more cost efficient.

Ready to learn how to increase repeat purchases?

How to increase buyer frequency:

Do you realize the importance of continuing the relationship with your existing customers?

From a strategic point of view, it’s important to segment your customers based on low, medium, and high spenders or based on other factors such as types of products.

Based on each segment, use these specific tactics to raise buyer frequency:

  • Create a membership program that delivers at a predetermined frequency
  • Create a loyalty program with incentives to continue regular purchases
  • Leverage retargeting campaigns that re-engage previous customers

3. Customers

increase customers

Increase your new customers.

Customer acquisition is the process of leveraging marketing channels to increase sales by getting new customers.

Acquiring new customers is a crucial aspect of marketing and the most challenging and costly. Implement an ecommerce conversion funnel in your marketing strategy to so that your efforts don’t go to waste.

So how do we measure this?

How to calculate new customers:

Simple. The amount of new customers each month!

Why you want to increase customers:

All businesses thrive on their ability to acquire a new customer and do it consistently over time. Consider your customer acquisition strategy the main producer that will enhance your ability to increase AOV and Buyer Frequency.

How to increase customers:

While there are plenty of ways to increase your customer base, below are three of the most effective.

  • Create first-time purchase offers to capture the interest of new customers
  • Create special offers once someone completes that first initial purchase
  • Leverage a traffic source (such as Facebook ads) to consistently drive traffic to your store

It’s all about LTV…

The value of the ABC Formula to focus your marketing and sales efforts will be vital for increasing the lifetime value (LTV) of your customers.

The more they’re worth to your food or beverage brand, the more you’re able to spend to acquire them and profit.


Here’s a quick summary:

Growing a food and beverage ecommerce brand is no easy task, but there is a solution for the overwhelming amount of work that sparks growth… the ABC Formula

Focus on increasing…

  • Average order value (AOV) – increase average amount spent on an order
  • Buyer frequency – increase the amount of times a customer returns to purchase again
  • Customers – increase the number of new customers

Now that you have your food ecommerce marketing plan…

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