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John Lott, partner at Spearmint Love, an online store selling baby clothes, had a problem.

He had just left his job at an equity firm to work full-time on his wife's ecommerce business. He was tasked with increasing ROI from advertising channels.

Facebook was an easy target. The company already had tens of thousands of fans there, and the community was highly engaged.

But a couple months into a well-performing ad, ROI would suddenly drop.

John couldn’t figure it out. He thought the ad copy must have gone stale. Perhaps customers had seen it too many times.

He wrote new ads. He changed the images.

The drop-off stayed steady.

Six months later, on a jog, he realized immediately what the problem was.

New moms, their target market, had moved on. Not from the ad, but in their buying behavior. He needed advertising cohorts that matched his consumer’s quickly changing life.

He set in place a plan that today has the company’s cost per acquisition (CPA) on Facebook down to $5.