About project
Period: May – Sep 2015
Client: Home Renovation Company
Subject: CaseStudy: 24.5x ROI
How A Home Renovation Company Generated $115,000+ In Revenue with
$4,684.73 In Facebook Ad Spend.
The Challenge
The client is based out of Columbus, Ohio and initially approached us with an
opportunity. Leads were being generated with offline marketing and a call center, but
they were looking to diversify their lead generation and test a new channel.
The channel they wanted to test: Facebook advertising.
This is a home renovation company, where the average transaction is $3,000-$11,000.
There were a lot of variables that made this campaign difficult for us to execute:
- No experience with Facebook ads campaign. This means there is no
foundation for graphics or copywriting that has worked well in the past. - No existing marketing funnel. There is no data on steps to best convert a click
into a lead into a client. - No benchmarks. There is no foundation of data to optimize and scale.
- No one to model off. Their offer is a unique offer in the marketplace, so there
was no obvious companies to model. - Sales cycles are long (60-90 days is normal). Theoretically, it would take a long
time to convert a lead into a client.
Process
Decide on a powerful offer
The underlying requirement of a successful campaign is a powerful offer on the front
end (what prospects see on Facebook) and on the backend (over the phone and in
person, in this case).
We were able to formulate an offer that was attention grabbing and was able to get
them click the ad.
Define a breakeven campaign
Most entrepreneurs know what a failing campaign looks like (we spent more money
than we made); that’s easy. But what has to happen for you to break-even? More
importantly, what needs to happen for you to actually make money?
The first objective was to get clarity on benchmarks on the existing campaign. We
launched the campaign to collect data on performance metrics for the KPIs. We looked
at what was going on at the Facebook level as phase 1.
The metrics we were looking for here include:
- Number of clicks
- Cost per website click
- Number of leads
- Landing page conversion rate
- Cost per lead
Define the funnel pages needed
We know the deliverable for each step of the process. Here is what our funnel looks like and the assets required for each step:
- Facebook ad: copy and images – 6 variations (cold traffic and retargeting)
- Landing page w/survey: copy for page + survey questions + technical setup
- Book an appointment page: copy for page + technical setup + calendar
integration - What to expect next: copy for page + technical setup
Result
After just two months on working with this client, we were able to:
• Generated 133 leads
• CPL was $35.22
• Close at 13% (1/8) leads buy
• 16 closes per month
• Therefore, CPA for a sale was $563.52
• Average transaction was approximately $7000+
Conclusion
This is the bottom line:
