- March 18, 2018
- Posted by: Dimitri
- Category: Uncategorized
I’m going to talk about lead gen.
But I’m going to talk about it in a way that nobody has ever talked about it before.
In a 130 leads for $140 kind of way.
This is a really cool strategy that you can use in any business – that’s something I don’t say very often.
I’ve used this strategy to sell both products and services. It’s been tried and tested, and it works every damn time – for one simple reason: hype.
In marketing, the key to getting the sale is emotion. Sure, logic has its place, but emotion comes first every single time.
First, for a bit of backstory…
I like to workout every day. I train at a gym near my home, and over the last 5 years there, I’ve become good friends with a lot of the staff.
Oh, here’s a douchy photo of me in the gym… just because…
Back to marketing… So I’ve become good friends with the management team at the gym and they asked me to do run a campaign for them to bring in some new members.
So being the nice guy that I am, I did.
They weren’t part of my clientele, so here’s what we were dealing with:
- Time Pressure: I wasn’t afforded the luxury of sitting for hours and thinking, carefully crafting a campaign, or building out the perfect funnel the way I do for my clients. We needed something quick and easy – a one hit wonder – the hare, not the tortoise.
- Low Budget: The owner of the gym wasn’t accustomed to internet marketing. They had never run online ads before. They didn’t know what to expect in terms of ROI – so I was given a hundred and forty bucks to play with.
Taking these factors into account. I knew what I needed was virality. I needed to amplify the adspend as much as possible, to really get the most out of the tight budget.
So here’s what I came up with:
We would run a giveaway campaign, offering a month’s worth of full access to the gym, classes, training, and whatever else usually comes with a free trial period.
Now here’s the thing: free trials are trash.
The market, particularly in the fitness industry, has become so numb to the ‘free trial’ offer that they’re unresponsive. You’re almost better off making them pay (trust me, I’ve tested this.)
So I knew I had to make them feel as though they were earning a month’s worth of training.
Quick marketing sidenote: Something I’ve discovered is that if people have worked for a particular ‘freebie’, they’ll value it a lot more – even when it’s the exact same thing you’ve been trying to give away all along. This’ll make more sense as you read on…
What I did was simple. Instead of simply offering the free trial, the price the customer had to pay was tagging a friend.
At the same time, this amplified the effect of our tight budget as it sparked virality – people were tagging their friends. Simple brilliance.
Simple right? Tell me about it. Yet there’s something about human behaviour that makes us place more value on the things we’ve worked for, no matter how simple that work was.
So here was the strategy:
We created a video ad that offered locals a month’s access to the gym for them and their friend, if they tagged that friend in the post.
Two leads for the price of one.
Another sidenote: try using emoji’s in your ad copy. They’re a great scroll-stopper (yes, I’m coining that term.)
Note that this campaign only went for 72 hours. Again, I made a point of spending the entire budget in a short period of time to promote virality.
We created one adset, targeting females living 5 miles from the gym, and included a bunch of fitness interests. It wasn’t anything complicated.
The only placement we used was news-feed – our campaign objective was engagement and all we wanted was to get as many people commenting as possible.
We ran the campaign for three days, and it blew up.
The challenge we immediately faced was contacting these leads and getting them in the gym. We messaged them all, but it was a struggle managing this many leads, particularly when the assistant manager responsible for the campaign struggled to use Facebook.
If I’d have done anything differently, I would have automated the entire process.
I would have set up a messenger bot to collect the leads’ details and book in their induction session. I just didn’t have the time.
I did do this recently though for another client, and it resulted in 25k sales in a single day. You can download the entire case study to the right of this article. It was phenomenal.
So we ended up getting about 20 people into the gym for their trial.
At the end of the trial, we had a retargeting offer for those who claimed the trial – 12 months for $500 (usually $700)
The gym banked $3,000 in sales.
And if we had used messenger to systemise the process, it would have been so much more.
The craziest part was that the average lifetime of a member at this gym was 5 years.
That meant each new member was worth:
5 years x $700 = $3500
The six new members totalled 6 x $3500 = $21,000 !
We also looked into this in their CRM. On average, each member referred a friend who became a member, also worth $3,500.
That brought the total lifetime revenue of the campaign up to $42,000 !
And a lifetime ROI of 42,000/140 budget = 300x
However let’s just take a step back and look at the immediate sales, because I like to be conservative with my results.
New members: 6 at $500 each
Not bad at all. How I wish we had implemented manychat. You can see the insane results it got for my other client by downloading the case study.
Overall, and considering the tight budget and time constraints, I couldn’t be happier with the results we got.
This strategy works great with any business, provided you include the key elements I discussed:
- An earned ‘freebie’
- Virality – tag a friend, and spend quickly.
- Retarget with a discount – $500 membership
Want to implement these strategies and see great results in your business? Fill out the form and we’ll be in touch.