We’ve already told you that Facebook is a great way to generate brand awareness with cold audiences and how having the proper strategy is critical.
You can’t just click the “Boost Post” button and expect sales to start pouring in. You need to be smart. That’s why I want to share this case study with you!
You’re about to see how we turned $736 in Facebook Ads into over $43,000 in sales for Summit Cabinets.
So if you want to learn how to use Facebook and a smart advertising strategy to grow your business, then this is for you!
I hope that our case study shows you how to get more leads for your business.
Are you excited!? I am too. Let’s dive in…
One of the most important things a business can do to generate more leads is having a great introductory offer.
Usually, this means some deep discount or (ideally) free offers to get people in the door.
That’s because the value is created after people experience what your business has to offer them.
Getting people in the door is the hardest part of running any small business, so you need something that’s going to drive them to take action.
Once they are there, they experience how great your business is and then hopefully purchase.
Since kitchen cabinets are an infrequent purchase, we knew we had to have an offer that would identify as many homeowners interested in new kitchen cabinets as possible.
We decided to run a giveaway for free kitchen cabinets. The grand-prize winner would win a set of Summit’s base-model kitchen cabinets, which have an MSRP of $3,000. If the winner didn’t want that particular model, the $3,000 value won could be used towards the purchase of a more expensive set of kitchen cabinets.
In addition to the grand prize, there would be 14 other additional winners. One winner means a very low probability of winning. So to encourage more people to enter, we knew we had to have more than one prize winner. Remember, our goal is to identify as many homeowners interested in new kitchen cabinets as possible.
Yes, more than one prize is a great way to encourage participation, but what if we could leverage the power of social media to make this giveaway go viral? We decided that we would encourage social sharing by awarding each entrant an additional entry into the giveaway for each person they also get to enter.
In this campaign, we ran a single carousel ad showcasing the different kinds of kitchen cabinets Summit carries.
For this client (and all of our local business clients), we tested zip codes and a client-designated mile radius around the location. In this campaign, zip code leads were $2.43 cheaper (that’s why we test!).
Ad Objective: Conversion
Impressions: 49,852
(How many people saw the ad.)
Frequency: 2.10
(How many times people saw the ad on average.)
Clicks to Website: 329
Cost Per Click: $2.17
Total Cost: $736.68
Relevancy Score: 6
(Score out of 1-10 how relevant the ad was to people who saw it.)
Before we got started (like we do with all clients), we found out what their target cost per lead was…
For them, if they could generate leads for under $35, they were happy.
It seemed a little high to us, but when you consider the lifetime value of a single customer, it was pennies to them.
So during the 21 days this campaign ran, here were the results:
Leads Generated: 67
Cost Per Lead: $11
Unique Landing Page Views: 232
Conversion Rate: 29%
Sales Revenue: $43,000
The 29% conversion rate is INSANE because this was a “cold audience.” Meaning it was people who have never heard of our client before.
Not only that, the $43,000 in sales revenue represents a 59x return on Summit’s advertising spend.
So what happens when people click on the ad?
We took them to a profoundly simple landing page that you can see below.
We let people know the prizes, entry deadline, and terms and conditions.
Note there’s only one action for them to take on this page.
There are no other links or distractions that would keep them from giving us their contact information. The only other action the user could take was watching a short video.
(Landing page)
After they completed that page, they were taken to a “thank you page” where we encourage them to refer their friends to get more entries into the giveaway.
(Thank you page)
(No, I don’t want the awesome results like these)
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