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Case Study: Using Facebook Ads to Reduce Lead Costs From $36 to $6

How to Use Facebook Ads for Lead Generation

In the first quarter of 2020, Stress Less Moving Service, an Atlanta based moving company, was at a crossroads. The owner faced burnout from spending too much time out of town and too little time with his family. He was also frustrated with spending money on leads that didn’t amount to finalized sales.

Stress Less Moving Service used one platform exclusively for paid leads. Too often, the owner paid for people accidentally requesting his services (also known as a poor-quality lead). That led to him spending more of his limited time on the phone requesting refunds.

That’s where I stepped in - he was ready to make a change.

I suggested that Stress Less Moving Service implement Facebook ads into the current marketing strategy. I took a look at his spending on lead generation from the previous 30 days. From that analysis, I suggested he spend $100 for a lead-generating Facebook ad. Simple.

I spent $100 and brought in $3500

One challenge for small, local businesses is finding the additional funds in their budget to test something new in their marketing strategy. So, we started small. Stress Less Moving Service 34X the initial investment for a ridiculous ROI of 3400%. Yeah, I was surprised too.

Here’s 4 things I did to get 34X results:

  1. Video content

  2. Carousel format

  3. Location-based targeting

  4. A simple barrier to entry with a lead ad form

Other notes about this campaign:

  • Ad was run for a cold audience

  • No other ad was running at the same time. We ran his entire budget on one ad.

What to do for better results

Of course, there’s always room for improvement. After reviewing the results, here’s 3 things I think would make this strategy even better.

  1. Create some warm traffic by running an ad ahead of time with the goal of increasing brand awareness

  2. Complement the Facebook ad with a Google Search ad. That way those who are familiar with his brand via Facebook and search his business later, will be served an ad.

  3. Use retargeting ads for people who’ve visited the website, other moving sites, or his other platforms across the internet

Takeaways:

In the end, the owner of Stress Less Moving Service was able to spend more time at home and less time on the phone because of our efforts. He was able to get a better return on his investment by reducing his lead costs and thus save money. Here’s a comprehensive list of our wins

  • Spent less per lead

  • Reduced low-quality leads by creating a lead form

  • Saved time with frustrating administrative tasks

  • More time at home with an increased number of local leads and a decreased number of long-distance leads

  • Great return on investment making $3500 from a $100 investment

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