We recently started working with a new client from the Fitness niche. He is the face of the brand and is selling online courses to a very specific audience: 30-50 years old men with children, interested in motorcycles and cars, from the working class, who are looking for a way to make their lives healthier and their bodies better looking.
Our Original Strategy
The client has spent a lot of time structuring the funnel flow and right now it looks ideal to him. He is driving the future customers into a survey where they answer all the main questions about their lifestyle but the main dealbreaker is the question: “How much money are you willing to spend on your fitness program each month?”
And based on the amount the client either sends them to a page with a selection of low priced programs (from $40 to $60) or sends them to a high ticket lead page. The future customer leaves all the details and waits for a call from the sales man who ideally closes the lead for a high priced individual program (from $1200 to $2800).
When we onboarded this client this is how the Top of the Funnel flow looked like. The main obstacle we were facing is taking under consideration the revenue coming from the high ticket leads. Since it is a whole process, we wouldn’t see the revenue coming from high ticket leads straight away in Ads Manager so it was very difficult to optimize the campaigns.
But since the client told us that the closure rate is quite high we continued pushing the TOF campaigns based on the amount of high ticket leads that we were getting since the revenue coming from these individual programs is much higher than the revenue coming from the cheap programs.
For the retargeting traffic though we were driving customers only to the low ticket programs since ideally the leads would be closed on the phone. And we saw that both Middle and Bottom of Funnel were performing quite well but we couldn’t start scaling them because there was not enough audience in the Top of the Funnel for the low priced programs.
Getting On the Same Foot
The client wasn’t that satisfied with the performance of the Top of the Funnel traffic so we hopped on a call with him to discuss our steps moving forward.
Our main point was that we were getting a decent amount of high ticket leads through our Top of Funnel traffic which ideally would be the main percentage of the revenue so it made total sense from our side to continue pushing the survey and getting more and more leads.
But the client told us that his main goal is to increase the amount of low priced programs sold and ideally exclude the high ticket leads at all because the main goal of the business is to get passive income without having to deal with calls, sales and so on.
Of course in terms of revenue at the moment this approach doesn’t make much sense but it is very important sometimes to look at the business from your client’s point of view and start adjusting your campaigns not just in order to increase the profitability right now but to reach much bigger goals in the future.
Building The New Strategy
So we started working on an absolutely different strategy and flow for the customers. We decided to separate the low priced programs from the survey and create additional landing pages for them with an option to purchase the programs straight away.
We don’t have any results yet but based on the results we’re getting for the retargeting traffic I’m sure we will manage to improve the prospecting traffic this way as well.
We have 5 different programs that can be considered as 5 different products so the variety of audiences and ads that can be set up is enormous which will make it much easier to optimize and scale.
Since there is no product cost for the low priced programs, our breakeven point is a ROAS of 1.0. We can start scaling if we’re over this point and there are no actual limits because there can be no stock issues or shipping fees.
And this path will make the client more satisfied than focusing on the high ticket leads and will grow his business much faster because this product is much more scalable.
But the key takeaway from this case study is that it’s much more important to listen to your clients needs because maybe from a media buying perspective it’s much more efficient to advertise one product but from the business owner point of view another.
If you want to start working with an agency that actually listens to your needs
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Thanks!
Maryana from DimNiko
