[Case Study] How DigitalMarketer Reduce Our Price Per Conversion By Over 50% In Much less Than 7 days DigitalMarketer
As many of you know by now, getting people to your website is relatively easy. If this were all we as marketers would have to do, the digital marketing world would be absolutely free for everyone.
The trick, however, is what comes after you get people to your sales page. How can you best move your website visitors through your funnel to get conversions?
I call that the million dollar question of digital marketing. (Please send me your answers 😁.)
Here is my answer: Stagger your motif and place different ads for people in different phases of the customer value journey.
What we have done
At DigitalMarketer we have some fairly complex funnels. One of our most important conversions is getting people to start a free two-week trial of Lab. As a manager for paid ads (hey, nice to meet you 👋), it's my job to make this as efficient as possible. We want to do this at the lowest possible cost so that we can scale.
I was able to cut our cost per conversion in half by doing one simple thing: presenting a testimonial creative to our warm audience, who hadn't yet converted.
Here’s how I set up these testimonial ads for our warm audience:
Targeting: Anyone who has been to our website or socialized with us and is not a member of Lab
Internships: All placements except Audience Network
Creative: We tested 3 variations of the testimonial ads for this first test and used a dynamic ad copy
Why it works
If it sounds too easy to really cut conversion costs by 50%, I understand that. But with your right hand raised – I swear that's all we did. Here's why this works so well.
It's a big question to ask someone unfamiliar with DigitalMarketer or our products to sign up for $ 95 a month membership. We already knew this, which is why we offer our two-week free trial so that users can experience the full value that Lab offers in a low-risk manner. Getting people to start the study is a big indicator of success for us.
But it can also be a bit difficult. To start a free trial, we will let you enter your credit card information. This is also a big question for someone who is not familiar with our brand or our products. Then the testimonials look magical.
When people see testimonials, they are assured that our membership really does have a lot of value – and they don't just have to take our word for it. Now is a good time to call all of our great Lab members who have said such kind words about Lab. (We ♥ ️ you.)
Testimonials work really well for our warm audience, but it is very It is important to note that they DO NOT work well for our cold audience. There were no conversions when I served these ads to our cold audience. These ads are only seen by our warm audience, which excludes current Lab members, as we do not have to advertise our current customers.
How we are progressing
Our next goal is to scale these results efficiently. Since we only show these ads to a warm audience, our expenses are pretty low. I let my frequency determine my expenses in a warm audience. I'm shooting for just enough ad spend to have a frequency of around 2.0 in a 7 day report window.
To scale these results, we need to enlarge these audiences so we can spend more money on them while sticking to my strict frequency limit. This means that next I need to optimize our top-of-funnel strategy so that we can bring in cheaper (but still high-quality) traffic that increases our warm audience pool.
Test this for your own company and let us know how it works for you.
Keep in mind that there is no one-size-fits-all approach to buying media, so this may or may not be a useful strategy for you. The important thing is that you NEVER. STOP. TESTING.