413 Leads, $200 Ads budget. A Strategy that can be replicated by any Small&Medium business.
This case study shows a lead generation strategy that is simple yet very effective.
There are a few benefits that are really invaluable such as:
- Automation: Emails are sent automatically. No need to call or email one by one every lead as fast as possible and it can be set up to be alerted when a lead is close to be ready.
- Quality of Leads: Not everyone asking information will buy and it’s absolutely normal. The higher the quality of leads is, the less time is wasted. To get high quality leads, you need to aim a specific target audience.
- Tracked & Measured: You know exactly how much you invest and what you get in return. Not like spreading flyers around the city and not knowing how many saw them and called.
- Practical: This strategy can be replicated and it needs only a setup. Once everything is prepared and launched, the only thing to do is to monitor the results and decide when to turn it on/off.
Every single step taken can be
replicated and applied for any type of business.
The data is from the second half of 2019 with sales goals for 2020.
Nevertheless, the applied marketing principles haven’t changed and are still applicable, in any industry, in fact we are still doing it for ourselves and clients operating in a variety of niches.
Before launching these sponsored ads, I did run a variety of campaigns to increase Brand Awareness and drive Traffic. This is to highlight that although the actual budget invested on this single campaign was truly less than US $200, without prior trial & error and continuous investment by my Client, most likely the final results would have not been the same.
On top of that, you will read about a couple of applications that I used which are part of the business running costs.
Said so, let’s get into it.
The Case Study includes six sections:
- Company overview, objectives & product
- Target Audience
- Tools utilized for this campaign
- The “Offer”
- Ads Copy & Imagery
Company Overview, Objectives & Product
Extreme Bike Tours (EBT) is a tour operator specialized in motorcycle adventures and offers to its Clients adventures on the legendary Royal Enfield in selected Asian destinations (India, Sri Lanka, Tibet, Mongolia, etc.).
The packages are “all-inclusive”, from the arrival at the airport until the end of the tour everything is take care of. Prices range from US $4000-6000. The primary annual goal is to achieve 100 bookings.
EBT’s typical client is between 40-70, both women and men, mostly from English language countries such as UK, US or Australia. They are Entrepreneurs, Financial Consultants, High level Managers sometimes even living abroad and in some cases retired. In all cases they are financially stable and well inclined to spend for these kind of adventures.
They love traveling and motorcycles yet they prefer complete packages to enjoy the ride without worrying about booking hotels, pick restaurants or find a taxi at the airport. They like to travel with close friends yet happy to meet new people along the way.
Considering that on average a single client books 3 tours, the calculated CLV (Customer Life Time Value) is of US $7,500. The CLV is what we will use to calculate the total worth of the leads.
Tools utilized for this Campaign
For this Lead Generation campaign I have used:
- Facebook Lead Ads ($200 budget – one time shop)
- ActiveCampaign ($88/month – up to 3000 contacts plan)
- Zapier ($20/month – basic package)
Lead Ads is one of Facebook sponsored ads Objectives. This method allows you to collect Lead’s contact information directly on the social network without the need to drive traffic to your website. This tends to drive more conversions (unknown audience to lead) as people don’t have to click on a button or a link and open another page.
ActiveCampaign is the email marketing and marketing automation tool used to save and manage the contact list while the automation are used to send scheduled emails and segmentation based on favorite destination of the potential client.
Zapier is third party application that collects the data from Facebook and transfer it automatically on ActiveCampaign, triggering the automated emails. Fundamental for the correct functioning of the strategy. Without Zapier, you would need to collect all the leads data and send a email one by one.
A Zap: Zaps are basically a connection that you can create between 2 or more applications and set the conditions to perform specific actions. In this case, Zapier collects Lead’s details from Facebook and add them to ActiveCampaign. This will also trigger the automations as shown in the previous image.
To incentivate the Target Audience and obtain their contact details as sign of real interest, we have created a downloadable Brochure with ride guides and itineraries of every tour. Furthermore, EBT offered a 10% discount valid on any tour booked with 10 or more months in advance.
The Brochure + Discount offer, is what in Digital Marketing jargon is called a “Lead Magnet” and it’s a “must-have” if your objective is to find new customers, regardless of your marketing strategy. Most of all, it has to be valuable for your potential customer.
In this specific case the Lead Magnet offers an emotional value – the dream of a motorcycle adventure – as well as a more tangible benefit in the form of a discount. If someone downloads the brochure and decides to go to the next level and book a trip, he/she would enjoy a 10% discount (US $400-600 savings).
Does it sound valuable?
On the other side, our side, anyone one who signed up confirmed a real interest by leaving their contact details and that’s our primary objective in this campaign.
FB Audiences + Ads Copy & Imagery
Ideally you would want to run Lead Ads campaigns targeting an audience that have already interacted with your brand or has visited your website (Retargeting campaigns) as it would be more likely to be interested in evaluating an offer rather than someone that has never heard of your business.
In this case however, the bull’s eyes were on a Saved Audience, an audience selected based on specific criteria that you can indicate such as age, gender, interests, job title, etc.. This allows you to show your sponsored ads to an audience that is more likely to be your specific target.
Our specific Saved Audience was naturally targeting people that fitted the description of EBT’s typical client described a short ago and was already been tested with different campaigns.
Then we picked 6 different images with highlights of the tours, motorcycles, destinations, and created a few sponsored ads using pretty much the same copy. No long sales pitch, no fancy text with emojis. Just enough to create curiosity, highlights, offer (brochure and/or 10%) and a CTA (Call-to-Action).
There has been some interactions which we weren’t really aiming for but they are a good indicator to confirm if you are reaching out to the right people or not. Good engagement also increases the ad relevancy and decreases ads running costs. So not a primary objective but definitely an important Key Performance Indicator (KPI).
Here’s what we achieved with this campaign:
- Campaign length: 40 days (approx.)
- Ads spend: US $190.02
- Leads generated: 413
- CLV: US $7,500
- Total worth (Leads x CLV): US $3,097,500
I cannot disclose sales numbers however we can speculate a bit in a realistic way.
Let’s assume that a very tiny percentage of the Leads converted into Sales and let’s say that only 1% of these decided to become an EBT client, that would make US $30,975 of profit with a single campaign and less than $200 of ads budget invested. If scaled, a $1,000 ads budget could have generated around US $150,000 of sales.
Again, the marketing principles, the tools and the strategy can be replicated and used for any kind of business.
And the best thing, is that it’s all automated and tracked.
Would you like to try this for your business and have a question? Bring it on and leave it in the comments below!
Director & Head Strategist at Digimarkout.
Simone is a passionate Digital Marketer, a foodie & football fan. He believes that good Marketing means creating a Win-Win situation, where both Seller & Buyer are happy.