How Local Businesses Cut Down Cost Per Lead by 70%
Updated: 4 days ago
With an astonishing 2 billion users, Facebook marketing is one of the BEST ways to promote your brand in 2019. For our Miami and Los Angeles Scalp Micropigmentation (SMP) clients, this proved to be very true.
Wait… Scalp Micro What?
We hear you! Scalp Micropigmentation is a modified form of tattooing that disguises hair loss by creating the highly realistic appearance of hair follicles, WITHOUT surgery! Talk about a specific niche! When our 1st SMP client, Zang, came to us, he and his team were already having great success in LA with the business and had over 70 five-star reviews. They decided Facebook advertising was right for them because they wanted to grow the business further by getting more leads and streamlining the leads process. Lowering the cost per lead was also important to them. Before working with us, their cost per lead via Facebook advertising was averaging roughly $70/lead. Read on to find out how we slashed this cost per lead over 70% and got it regularly down to sub $20/lead!
High-End Treatment = Big Payoff
SMP treatments can cost upwards of $2,000, which is obviously not a cheap service. We knew that it would take the right campaign tactics to pull off great results for our Miami and LA based SMP clients! Because the treatment was more expensive, we had to hone in on just the right target market to find success with our campaign.
Prior to working with TDM, the client was running some Facebook ads, but was somewhat new to advertising on Facebook. He was able to get some results -- which is an excellent starting point -- but it unfortunately had not been profitable enough for them yet. They needed someone to come in and make it much more successful, which is why they reached out to the advertising experts at TDM. As every business owner knows, positive ROI is extremely important!
The Importance of Instant Lead Response
We decided to use variations of their original landing page with calling AND texting call-to-action in addition to a landing page with a lead form.
After the form is submitted, we then set up automatic email marketing and automatic texting, along with a notification to the client so he can call the lead immediately. This allows the client to speak to the person on the phone in order to schedule the free consultation, and to make that important personal connection.
Texting and the 21st Century
There has been astounding research that shows that responding to a lead within an hour increases the conversion rate 7x! Yes, you heard that right, you are 7x more likely to convert a lead if you reply within an hour (0-5 minutes is ideal). At TDM, we’ve seen this tactic improve many campaigns. This is why we make sure your leads have an instant response, whether through text or email. Seeing as it’s the 21st century, texting is preferred by the vast majority of leads. This is why it’s a critical aspect to add in to your lead generation campaign.
Want to make sure you are reaching your ENTIRE target market? Sending an email, text AND phone call greatly increases your chance of converting that lead! Often time businesses worry about getting “quality” leads. We have found that more often than not, it is just that they didn't have the right system in place to make it easy for these leads to communicate with them. Using texting in this day and age greatly increases your chance of that lead converting and thus, making your business more and more profitable!
We also created both the ads and landing pages in English AND Spanish, to reach a broader market. We found astounding success with Spanish leads in our Miami market. It’s extremely important to consider things such as language and cultural demographics when trying to bridge barriers with your target audience.
Making Sure Your Target Audience Doesn’t Get Bored
Everyone knows that annoying feeling when you see the same offer or ad in your newsfeed over and over. Most of the time this helps generate more leads but when it stops working and edges on too much, something called “ad fatigue” happens. We can identify when this is happening to our client’s target customers and thus test several different offers AND rotate them according to the response of the audience along with the time of year. We find continual success with gaining new leads when we take this mindful approach.
Cost per lead slashed 70%!
Yes, you heard that correctly! We managed to take the cost per lead from about $70/lead down to sub $20/lead. We realize that the above screenshot shows that the cost per lead averages to be just above $20/lead, but that doesn’t take into account the additional phone call leads as a direct result of this campaign, (due to phone calls not being able to be tracked this way via the ads). In addition to that, we are now bringing in approximately 200-300 leads per month.
What’s The Secret?
An example of two lead magnets we used are a “$200 off treatment if booked this month” and a basic “learn more.” We found that the “$200 off” magnet performed the best, as it provides an incentive to inquire in a limited-time frame. To the benefit of our clients, in order to actually get the $200 off, you must pay for the service, which meant increased revenue for them!
Although this is not a secret, it’s a good time to reiterate the importance of how to make it easier for the lead to communicate with your business. If you don’t do this, then your response rate will inevitably be lower. That's not a lead quality issue, it's a business unfortunately hindering their own success.
Different Markets Require Different Strategies
Depending on the market, different languages and landing pages perform better. In Miami, we found that the landing page with calling/texting call-to-action did best. In LA, the landing page with the lead form did best. TDM is committed to doing extensive A/B testing in order to ensure the BEST results for the market you are in!
Unfamiliar with A/B testing? In a nutshell, A/B testing is experimenting and comparing all aspects of a campaign (e.g., landing pages, ad text, headlines, and different call-to-action buttons). Basically, any aspect of a campaign. By testing two or more variations of your campaign, we can easily deduct which aspects are “losers,” and raising the cost per lead too high, and which aspects are “winners” and making the campaign super profitable. A/B testing provides us the insight to alter the campaign strategy and make sure you experience the best results. You simply cannot get a high ROI without proper A/B testing, making it an extremely important aspect of any advertising campaign!
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