What’s your digital marketing cost per lead?
See how we got this client’s lead cost down to $20.
The following is a simple case study of a new client that’s in the countertop fabrication business based in Seattle Washington. We love this client for a couple of reasons. First, they set financial goals and they are willing to try new things. The company generates approximately $7 million in revenue annually and has set a goal of growing their business to $10 million over the next 3 years. The client explained that his fabrication plant is running at a little over 60% capacity and by adding more revenue he can generate more profit a near full capacity running multiple shifts.
When we first on-boarded this client we made some minor but critical changes to their website. Some of the modifications included simplifying the navigation, changing the workflows and updating text and images. Other modifications involved increasing customer engagement. We found that website visitors only viewed 2 pages per visit and spent under 30 seconds on the site before leaving. We know from experience that this is very low and indicates that potential customers are not getting relevant information as it relates to their search. (Consumer engagement is a critical component of building a great website and integrated social media.) Without improving this metric, we’d never increase conversion rates or lower the cost of acquiring a customer.
The client was spending approximately $10,000 on digital marketing. Once we established a baseline of Cost Per Lead (CPL), which was $85 per lead, we reduced spending by 50%. Our next step was to review, modify, and rebuilding their digital marketing accounts. Once that was done we slowly began ramping up spending and adding new programs. We rebuilt a brand new Google AdWords account with all the bells and whistles including call tracking and all optional extensions. We also added Facebook ads as a part of our budget. In addition to Paid Search, we rebuilt their social accounts including Facebook, Google My Business, Instagram, Pinterest, and Houzz. We also added new features to the site to make it more engaging and added a live chat service to capture incremental conversions.
Prior to our engagement our client was paying between $85 and $100 per lead and was also buying leads from places like Home Adviser for $75 each. Within 60 days we were able to accomplish a few key metrics (which we continue to optimize). We increased engagement (time on site and page views) to over 1 minute and 5 pages respectively. We increase the conversion rate of visitors to conversions) by over 100% and we reduced CPL by $55.
Below is our performance for July.
Total Sales Calls: 224
Total Web Forms: 73
Total Chat Leads: 39
Total Sales Leads: 336
Total Budget: $7,000
Cost Per Lead $20.83
There are several important points in the study.
First, many of our clients have no idea how much they are actually paying for leads. Cost Per Lead is a good metric to use to establish a baseline. It’s not an exact science because lead cultivation to an actual sale may take months so we use it a guide for performance.
Second, it’s good to set revenue goals. Many of our clients just want more people to come into their showrooms and don’t have a specific sales goal or target in mind. Setting a target enables us to set reasonable budgets to meet those goals. The goals and budgets can be small to start but marketing on instinct doesn’t usually end well.
Third, since the only “constant is change”, you need to be flexible and try new things. There is no “silver bullet” to online marketing. Investing in online services, if done properly will help you find the right mix of marketing to get to your CPL goals.
Fourth, recognize the fact that keeping up with digital marketing (advertising and social media) is nearly impossible for the small and medium-sized business. Digital marketing trends change often and it takes a lot of effort and coordination. Often times companies start a program and when it doesn’t work right away, they give up or hire a company who knows nothing about their business or industry and they don’t get the results they expected. The point is that these programs work, you just need to find the right company to work with.
#countertop #countertops #granite #quartz