NEW Facebook Ad Strategy Scales Business to $113M/year

I made one change to the offer in a business Facebook ads and that change turned it into a $13 million a year jugal and in this video I'm going to tell you this business's crazy success story I'm going to show you what this new offer was and how it completely changed this industry okay so I'm really excited to get into this one the numbers and the results involved are absolutely insane I want to quickly start by giving you a bit of context um on this business so you better understand when I talk about the offer

and the results and the impact that it have all the interesting stuff um as we go through okay so this company was a boiler company UK based uh and they did supply and install so you need a new boiler your old one's broken they come and Supply the new one um and install it in your property uh mostly residential is what this uh this company did uh operated nationwide at enormous Market there's about 27 million homes um in the UK boilers break and they need replacing lots of potential customers and it's a very hungry crowd

like everyone knows the WEA in the UK whether or not you're watching this from the UK or not um is not great if your boiler braks it controls your heating your hot water you're going to want to get that fixed ASAP so it's very much when you need this offer this product and this service because you need it then you need it installed um you are willing to pay and get it fixed ASAP so the industry average not this business average average at the time was about £3,000 for a new boiler to have it uh

to for the actual thing itself and then to have it installed in your property this business average price was about £1,250 so significantly less they were very much competing on price now they're not offering the exact same as the average unit this would be a less expensive unit but also trying to be very competitive um on price they did offer a 72-hour guaranteed installation which I always thought was a fantastic part of their offer their original offer before we introduced the new one uh because like I said if you have an issue with your boiler

in the UK it's does your heating does your hot water you're going to want to get that sorted um as as soon as possible so if when you're advertising and you've got a 72-hour guaranteed installation your competitors don't for a product like this that's going to help you get a lot more um conversion that was a great part they already had um of their offer and their customers work CED exclusively through uh meta ads and Google ads it was all cold paid traffic there was no sort of brand really Associated relatively new company um and

and yeah that's how they got their customers so the cost per lead and remember this is before we started working with them before we introduced um the new offer was about 90 cost per lead on meta I don't think we ever actually got the information for their cost per lead on Google but most of the budget the vast majority of the budget was going through meta ads um Google's more being used for sort of like remarketing and things along those lines so about £90 cost per lead I also don't unfortunately know the conversion rate from

lead to customer at this point once we started working with them introducing a new offer I have all that data and I I will share it because it's really really interesting but we don't know what their conversion rate was at that point but I do know that a 90 cost per lead was absolutely not profitable for this business both from the conversations I was having with the business owner very clear this wasn't profitable but also just think about it if you're paying 990 cost per lead even if you've got a really good conversion rate the

customers are only worth just over £1,000 you've got to deduct from that the cost of the boiler the cost of Labor to do the install um this companies competing on price their margins are quite thin like you can see how that would not be profitable so this business in a situation where we either needed to increase price significantly to increase margins and make say a 90 cost per lead work or reduce their cost per lead significantly and honestly if I was just giving regular business advice I would normally advise to increase price um and then

improve the the value of what you provide to justify The increased price operate with much larger margins that allows you to invest more into your marketing I think it leads to a much more profitable business overall but this business owner did not want to do that totally get that I've had that conversation with so many business owners where I'm like I think we should go this way and they're like no no no no our price point is one of our big selling points we need to reduce cost per lead and I get it right and

that's what obviously uh we look to do for a lot of clients and that's what we did in this scenario and significant reductions in cost per lead of the type that this business needed they're obviously not easy to achieve anyone that's been advertising um on meta will know that if you want to half your cost per lead or more that's not easy to do so when you have to do something quite significant right a 20% reduction like we said they weren't profitable they weren't close to being profitable if we knock that cost per lead on

meta down from £90 to £75 that was just not going to do it we're going to have to do something uh more significant than that so we started with the highest leverage element of a meta add campaign and that's the offer that's the one thing that you can change and hope to see a massive difference in your results a lot of people want to mess around with the settings at the at the ad set level various targeting options and they can make a an improvement but it's not going to get you the sort of improvement

that we needed within um this ad campaign we need to see something really significant therefore the offer was the obvious place to start so let me explain what the new offer was so the new offer was very simply6 per week for 5 years right let me let me flesh that out a little bit and give give a bit more cont text so the customer instead of paying the £1,250 um upfront as they were doing previously would pay £6 per week 5 years of payments so the new customer LTV actually increased a bit because if you

do6 time you know 5 years 5 * 52 you get to 1,560 as the customer um average lifetime value the previous one like I mentioned being £1,250 uh we kept the 72-hour guaranteed installation I always felt that was a really good part of the previous offer absolutely ported that across um and had that as as a core part of of the new offer that we knew would help Drive leads that that's exactly the same as before so all the new Facebook ads that we created really emphasize these two core components of the new offer the

72-hour guaranteed installation anyone who's interested in this um has either got a boiler that's not working very well at the moment kind of maybe had an issues maybe you've had people out to come and have a look at it try and fix it but you know you need a new one at some point or people who have literally got a boiler that's done it's dead and they need a new one ASAP so they 72 to our guaranteed installation is absolutely fantastic and then only £6 per week think about how much more attractive that is to

a lot of people instead of having to get together the 1,250 which many people wouldn't be able to do it's just6 pound per week you can have a new boiler in it'll be working within less than three days isn't that brilliant um so that was a real offer and we really put that offer as the core focus of the ads we had it in the creative we had it in the copy we made it as clear as we possibly could now I should say that Finance offers in the UK boiler Market are now very common

like if you go ahead and Google this now you will see lots of companies um offering Finance related offers but they weren't when we introduced this when we ran these campaigns which is uh like I mentioned previously a few years ago now this new offer because other businesses weren't doing it gave this business a massive competitive Advantage um we've already talked about the obvious um benefits to the end consumer to the to the customer um and if your C if your competitors aren't doing this that's a big win now let's take a look at the

results so the cost per lead remember the previous cost per lead before this new offer was £90 the new cost per lead was £650 now I expected this new offer to significantly reduce the cost per lead I didn't think it would reduce the cost per lead that much like that was a very pleasant surprise that was amazing to see and and it shows the power of this offer and how uh much more appealing this was to the people seeing the ads for it so conversion rate previously under the previous offer we don't know what it

was under the new offer was one in8 I do think that could probably be improved upon um I typically for any sort of service based I know there's a product involved in this but you sort of I'd categorize this as more of a service based business because it is being installed as well um that we'd want that closer to say a 20% but 12.5% was still great given the massively massively reduced cost per lead okay let's carry on with with results so what does that mean in terms of cost to acquire a customer so we've

got £650 you know divide that by 122% you get £52 so this this company was acquiring new customers for £52 each I remember the customer lifetime value so what's a customer worth to this business is now with the new offer £560 we did actually adjust that in our forecasting and in our reporting to the previous customer lifetime value of £1,250 and that's because of expected failed payments I think this is really important when you're calculating uh lifetime value of your customers um if you have like a a payment plan or even like a subscription business

but in this scenario a payment plan would be would be more applicable not everyone is going to make all the payments and you should absolutely factor that into your numbers don't assume that everyone's going to make all the payments you be like oh great our lifetime value is four grand therefore we can afford to pay this to a CH customer it's like yeah it might be closer to three three and a half because a certain percentage of people are not going to keep up with the payments and with the business like this you hav got

a decision to make is it even worth doing anything about it so like you go and take the boiler out their house might be cost more than just just to forget about it so I don't exactly know what this business did in those scenarios where they had um failed payments from from customers but um but yeah so we facted add into the numbers so we uh did an adjusted customer lifetime value of 1,250 which is the previous one um so if you're looking at return on ad spend you're looking at under the new customer value

a 30X return on ad spend under the adjusted one still a 24x return on ad spend which means that for every one pound invested in meta ads 24 of Revenue was generated for this business which is absolutely fantastic and obviously very very profitable which is great so we scaled their meta ad campaigns significantly why wouldn't you when you're getting such um fantastic results reaching a peak a peak daily budget of £10,000 per day £300,000 per month um which is roughly $400,000 per month I know a lot of people watch my videos not in the UK

so I translate dollars um because people are more familiar with that currency so let me show you what this translated to for this business in terms of the results at scale and what it actually uh meant for them right so like we discussed the ad budget at its peak £300,000 per month um if you work out out based on the cost per lead you get to just over 46,000 leads per month which is crazy volume and at the conversion rate you're looking at 5,700 odd customers generated per month I remember there was so many customers

being generated we look at these numbers thinking this is this is incredible we actually worked out at the time what that meant in terms of total market share and I remember Googling at the time there's roughly 700,000 new boilers in residential h homes uh bought fitted per year right uh 27 million homes you know that many break need replacing etc etc um and what that meant if you work it out right based on the the customers of 5,700 is that just over 10% of the new boilers at that time being fitted into Residential Properties in

the UK were being done by this company and this is a relatively new company which is just absolutely insane shows the power of a new offer a really good offer and an offer that your competitors aren't using that's um that's that's important to note as well so if you work out the revenue based on the customers generated and the average customer value looking at £7.21 million a monthly revenue from uh these campaigns if we work that out annually Times by 12 we get to 86.5 million which roughly translates to $13 million um of annual revenue

additional anual Revenue added with these meta ad campaigns so I mean just crazy results I'm not sure that I've ever run a meta ad campaign that has added more value to a business um than this one hopefully in the future but yeah this was uh this was something really special which is why I wanted to share the story with you so unfortunately we only actually worked with this business for a few months as an agency uh because and looking back this is unsurprising they were bought by one of the big players in the industry I

think when you make that much of a splash and you grab that much market share as a relatively new company with something new we see this in in the tech space all the time right a larger company will go oh that's really good we're going to go ahead and acquire you and um take advantage of what you're doing but also eliminate you as a competitor effectively and actually I remember at the time this we ran these ads for this company a number of years ago uh when my agency was much smaller this was our biggest

client by far at the time we were so excited because the results were so amazing and um it was pretty devastating to hear that first we were told we need to scale the campaigns back as we think we're going to be acquired from from this client um and then we told to turn them off whilst they went through I don't know negotiations and whatever I I've not been through a process like that so I don't know the uh the teal details but that was pretty tough at the time because obviously we thought we thought things

were flying but you know looking back this is not that surprising that that happened um but the important thing here is that like this new Finance offer the6 per week as opposed to just paying for it upfront in a Marketplace that didn't off of this combined I think with the 72-hour guaranteed installation um resulted in just an enormous decrease in cost per lead like unexpectedly a mass massive decrease in cost per lead which resulted in enormous growth tons of customer Acquired and a lot of Enterprise Value Enterprise Value being the value of the company this

company became so valuable that a much larger established competitor came in and uh and bought the company so I've got a quick question for you would you like us to help massively explode your business with improved Facebook ad results now I am not saying by any means that we'll be able to turn your business into a $113 million a year Juggernaut but I am very confident that we be able to reduce your cost per lead or your cost per purchase obviously depending on on which of those is more important um for your business so there's

a couple of ways we can help going to run through them very very quickly so firstly Heath media my specialist meta and Google ads agency we offer done for you Services we can create manage and optimize your ad campaigns for you uh take that workload off your hands most likely get you significantly better results there is a link in the video description below if you're interested you can go ahead book a free no obligation call to find out more um about how we might be able to uh help we do have a 5k per month

minum budget requirement so if you're over that go ahead look a call honestly if you're at that scale it makes a lot more sense to hand this over to a uh specialist agency like myself is going to be able to get you better results so you can focus on other areas of your business but obviously a lot of people watching this video won't have that budget requirement and if that's you we can still help you because we have Facebook ads Mastery Facebook ads Mastery is brand new course material it's my new course with Community it's

the best stuff we've ever created never before seen it's not on YouTube anywhere else it's a stuff we're using to train our own internal staff to get the best possible results for our clients um all the best Facebook ads related information that we have is in there comes with a school Community more than 700 business owners just like you they're already in there there's daily interaction from me and my team we're answering questions providing feedback taking a look at people's ads helping them out in any way we can to get them the best possible Facebook

and Instagram ad results uh within Facebook ads Mastery we also do live calls live trainings and q&as both with me and some of my expert team members as well so trying to provide as much value as we can it only cost £97 per month uh and if you're under that 5K budget level at the moment um this is probably going to be the better option for you link is in the video description very last thing if you found this video valuable you you like me to make more like this a bit different from my regular

style uh then please go ahead and subscribe and let me know in the comments I will keep an eye out and what you say really impacts the content that I create hopefully this has been valuable and I'll see you soon