Period: Jan – March 2019
Client: Web Dev Shop
Subject: 10 times lower lead cost within a month
A premium web development company spending over $300 per lead on average was able to get their lead cost down to $35 within a month.
The client was running Google Ads to find customers looking for web development shops. Google Ads are great and hundreds of thousands of businesses use google ads for marketing their products and services.
However, for our client this was getting expensive. Our goal was to reduce their lead cost.
For a high-end web development shop life-time-value of a customer can be anywhere between $30K to $1M or more.
On Google Ads, they will usually get lead cost between $300 and $1000 based on their location, industry they are targeting etc. assuming that the campaigns are optimized. Now, with such a high LTV of a customer, $300 or even a $1000 lead cost is okay BUT as we know not all leads covert to sale so there is always a benefit of reducing the lead cost without degrading the quality of leads.
One way to do that is go creative on a different channel.
We implemented a strategy that gave them over 95% lower lead cost in comparison to Google Adwords.
Here is a short breakdown of the process:
- Brainstormed the ideal target audience
- Improved our targeting and really niche down to highly relevant audience
- Created an irresistable offer for this target audience through videos, ad copies and images.
- Designed a simple funnel with all the elements to capture and convert the lead.
- Setup the campaigns with re-targeting capabilities.
- Went live and started measuring
- Optimized, optimized and optimized.
The client found a great target audience and booked 32 appointments for an ad spend of less than $1,500.
in comparison to 3-4 appointments with their Google Ads campaign for the similar ad spend.
- Cost per conversion = $35.7
- Total conversion = 32
- Ad spend = 1142.4
10X reduction in lead cost.