How To Find New Customer Leads For Less Than $1

by Common Thread Collective Collaborator

Jun. 25 2019

What would you say if someone asked you to define marketing in five words or less? Here’s my favorite definition, courtesy of Seth Godin:

“Make big promises; over deliver.”

When you work at a place like CTC, dreaming big, having ambition and shooting for the stars is part of the culture.

Just look at our mission statement: we exist to help entrepreneurs achieve their dreams. How’s that for making big promises?

What makes us really good at what we do, is our commitment to over-delivering on the big promises we make. Maybe this looks like getting a client to 5X in account performance or hitting 4X on a revenue target for a big sale. It can also look like getting $1 leads for a salon in Houston, TX with a $30 CPL target - more on this later.

Our many success stories have all been birthed out of a culture of dreaming big for ourselves and for our clients, and then over delivering on the dreams we build.

Three weeks ago, we took another step towards over delivering on our mission with the launch of our newest department: CTC LocalWe realized that, as an agency, we’ve always had a way to partner with entrepreneurs that own e-commerce brands, but we wanted to find a way to help local entrepreneurs achieve their dreams too.

So, what does CTC Local do and how the heck did we get $1 salon leads? (Sorry for the clickbait-y title).

Here’s the one liner: We partner with local entrepreneurs to grow their businesses by finding new customers through digital advertising.

These are the steps for success we took on behalf of our client, Milk + Honey, a Spa and Salon based out of Texas.

Step 1: Create a strategy to find new customers

Milk + Honey’s biggest priority when we started our partnership was driving revenue for their locations in Fort Worth and Houston.

In order to solve this problem and bring in new customers, we started with creating a digital advertising funnel that was measurable and scalable.

Based on their business, we decided that Facebook, Instagram, and Google would be the best platforms to begin with and we created strategy around campaign structure, audience targeting and types of creative we would use. We also strategized around what offers we could use on-platform that would attract and incentivize new customers, but maximize profitability for the business. We set out to use ads to find future spa and salon customers and acquire their name, email and phone number.

Step 2: Establish a follow-up flow

The next step was creating an effective follow-up flow to help qualified leads convert into future customers.

It’s vital to think about a customer’s experience as they journey through your funnel from top to bottom. You want to make each touch point as meaningful as possible with an understanding that somebody may not become a customer the first time they interact with your brand on social media.

Building upon this, leads were entered into an email campaign and followed up with over the phone to maximize customer service and drive more appointment bookings.  

Step 3: Launch campaigns and optimize for the best results

At this point, we built our campaigns and launched our ads. We started with conversion campaigns that directed traffic to an off platform landing page where they would submit their information in response to the offer presented in ads.

From launch, we were getting leads for about $25 and we were able to stay below our target cost per lead of $30 in all but two campaigns. After a week of optimizing our campaigns, we decided to test different campaign objectives like running lead generation campaigns instead of conversion campaigns.

People who clicked on our ad would be prompted to fill out a lead form on platform instead of getting redirected to a landing page and we immediately saw our lead costs drop to under $10. After a week of running lead ads, our campaigns were performing with a CPL of anywhere between $3 to $8.

The final step towards optimizing our campaigns was through utilization of strategic creative types and placements. By using an ad with an organic look and feel on IG Story placement, paired with key target audiences, we were able to get leads down to $0.94 for our client.

What we learned:

Through using different campaign objectives, creatives, audiences, and placements we were able to optimize our lead costs to a fraction of where we started at the beginning of the month and where our target goal was.

We tested and proved our learnings that digital advertising is an incredibly effective tool to grow local businesses by finding new converting customers.

All this goes to show that at CTC Local, we’re carrying on the torch of CTC’s mission to help entrepreneurs achieve their dreams. In doing so, we’re continuing to make big promises for ourselves and for our clients – over delivering with effort and interest.