From Losing Money to 14x Return on Ad Spend - A 30 Day Transformation
Picture this: I'm holed up in a 15m2 hotel room for the second time, thanks to the darn pandemic. Just a week ago, I was in Europe, where life seemed normal. Meanwhile, Asia was in chaos. A week before I landed in Hanoi, Vietnam's capital, I got a call from my younger brother. Business was in dire straits and needed a swift turnaround. My quarantine couldn't have come at a better time. It was about time I rolled up my sleeves and got to work on the sales funnel.
The Mess I Walked Into:
Landing pages that were a design disaster
Messaging as clear as mud
An offer that left you scratching your head
A single-step funnel
Zero strategy for nurturing leads
The business I was dealing with was a one-stop entertainment hub offering courses and services for musicians. They had a solid reputation and were seen as the most professional and international outfit in their area. With such a strong foundation, I knew I could turn this sinking ship into a speedboat.
The Numbers Before and After the Turnaround
Before the turnaround, they were spending around $5k USD on ads per month and getting a return on ad spend of 1.5x. They were still losing money due to high overheads.
After the turnaround, they were still spending around $5k USD on ads per month, but the return on ad spend was now 14x. They were finally making a profit.
The Turnaround Strategy
The turnaround strategy was straightforward: we needed to revamp the funnel. Customers don't just appear out of thin air on their first encounter with your brand. So, we decided to take the following steps:
Step 1: Sell the click with irresistible ads
Revamp the Google ad copy
Develop new ad creatives (video)
Step 2: Redesign the landing pages
Well-structured landing pages based on our research
An irresistible new offer
A high-value content offer to collect emails
Step 3: Nurture prospects through email
Most of the services were priced above $2k USD, so not many people would spend that much on their first visit
We created a well-structured email funnel to guide them to purchase
Step 4: Boost credibility with social proof
We reached out to past customers for honest reviews
We turned these reviews into content and included them on the landing pages
We set up a system to repeat this process
Step 5: Automate the marketing
We automated the entire funnel up to the point of contract signing
The Impact
The turnaround strategy had a profound impact on the business. The new and improved landing pages, coupled with a clear and compelling offer, started to attract more potential customers. The email nurturing strategy allowed us to build relationships with these prospects, gradually guiding them towards making a purchase.
The social proof strategy was particularly effective. By showcasing honest reviews from past customers, we were able to build trust and credibility. This not only attracted new customers but also reassured existing ones, leading to higher customer retention rates.
The marketing automation streamlined the entire process, saving us time and resources. It also allowed us to focus on other important aspects of the business, such as product development and customer service.
The Takeaway
This experience taught me a valuable lesson: no matter how dire the situation may seem, there's always a way to turn things around. It's all about identifying the problems, coming up with effective solutions, and implementing them with determination and consistency.
In this case, the problems were clear: poorly designed landing pages, unclear messaging, and a lack of lead nurturing strategy. The solutions were equally clear: redesign the landing pages, clarify the messaging, and implement a lead nurturing strategy.
The results speak for themselves. The business went from losing money to making a profit, all while maintaining the same ad spend. This is a testament to the power of effective marketing and the importance of a well-structured sales funnel.
So, the next time you find yourself stuck in a tiny hotel room, remember this: it's the perfect opportunity to roll up your sleeves and get to work. You never know what you might be able to turn around.