134 – Cost Per Lead in this New Normal

Profit Engines Show: Digital Marketing Strategy and Process for success, business tips, sales tactics and more. The show includes real true case studies from Matt’s Agencies Customerbloom and PracticeBloom. Guest interviews from experts, increase your understanding of advanced business concepts and life productivity.

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May 28, 2020

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Matt Coffy: I am so excited. I have Erica on we made today and we are going to talk about a lot of cool things, especially talking about cost per lead in this current new normal, I love to call it new normal. That’s my new word for our current situation. And one of the things I’ve discussed and we’ve had, you know, April was a very interesting month Erica. We have a lot of new clients. We have a lot of new business coming towards us because they, they basically said, look, we’re going to, we’re going to roll into may. It’s going to, it’s a V shaped thing, blah blah blah. Now we’re, you know, into late may clients are having their, what I would consider a second thoughts are that they’re like, you know, how long is this going to last But we see a lot of opportunity and we see a lot of opening. We see things sort of like, I think there’s a, there’s a general thought in most of the practitioner’s minds is the demand there. And I think that is something that we’re going to show, which is part of this discussion. But what I wanted to also say was that what I’ve been talking to clients about is leadership skills

Matt Coffy: And leadership skills mean that, you know, instead of pondering and punting this ball down the field for another week, it’s about making decisions and starting to basically test the waters and become relative to your market. And basically the thought that I’ve said, and this is a recent, indication of really where the market is, is it’s a commitment to your market. It’s a commitment to your community as well. Because there’s the real demand is that if you stand up and you’re the leader and people want to gravitate towards you because they see you, then evidently you and I both have found out that that is an amazing time right now to be in a leadership spot because you’re getting low cost leads. Let’s talk about that real quickly.

Erica: So I think right now is the perfect time to, you know, emerge as a leader during this opportunity. people want their beauty, but they want to be protected, while they get their beauty right now. So this is an opportunity to, you know, come out ahead of your competitors, you know, tell your your audience, you know, how you’re going to meet their demand, but everyone’s going to be safe, in a safe environment and you know, cost per leads are very low right now. This is a great time to get out there and you know, be a leader in your field, get out there, ahead of your competition. it’s going to be very important that, you know, you are there. We would be helping you select, you know, campaigns and services to advertise that are going to be appropriate during this time where we can really Excel and do well.

Matt Coffy: Yeah. Yeah. The safety economy, maybe that’s what we should call it right now because you do have to tilt your messages towards the safety factor and also really the ability to persuade customers that it’s okay. Right. I think that’s what’s going through a lot of practitioners minds is that, you know, are the customers themselves. We forget about the demand. Yeah. We know the demands there, but other customers going to come in, I don’t know the customer is going to show up for either a teleconsult if they’re doing, if they’re still in lockdown or a teleconsult if they’re going to do like a two step model that we’ve found has been super exciting. It’s interesting we’re seeing all these new models develop because of the, the current new economy and I, and I always wonder why people would hesitate if I told them like, look, the costs are almost two thirds less to run your business from a marketing perspective.

Matt Coffy: You’re going to jump ahead and profitability. I know for our own company like our agency, well we, I think we had the best month ever in April because we had jumped ahead. We had cost savings, we had huge amounts of impact from inbound activity and I’m thinking why aren’t the practitioners taking advantage of this And I said, you know, I think part of it is just a mental stimulus of saying it’s okay to be opportunity driven right now as well. Because I think there was opportunity shaming going on when people were open and others weren’t. And that might’ve been a curse for some people that say, well maybe I shouldn’t be out there because I don’t want to feel like I’m taking advantage of the situation. But what we’re saying is that your customers, your patients, the people are in dire need to get out and do something. They need leadership. They need you to tell you they need you to tell them it’s okay.

Erica: Okay. Absolutely. And I think Matt, like one of the really cool things that we’re seeing right now, a lot of the clients that have started even just this week, you know, they have online booking, their schedules are already booked out over the next like two, three weeks. You know, even in some of these areas of like hotspots in New York and New Jersey where, you know, it’s showing now, a lot of people don’t appear to be, you know, nervous about coming out and they’re ready for beauty.

Matt Coffy: Yeah. They’re ready for something that is outside of the 30 to 60 days of confinement. And yes, they have to wear a mask and yes, they have to do this, you know, business of being ultra sensitive to the conditions that are out there. But the reality is, is that we’re seeing the other States, Georgia, Texas, Florida, you know, all these other States, the masks are gone. The like th th it’s over. Like you literally go and you, you, you see some of this stuff happening in the news and you’re like, they’re not even there. There’s such a difference demand curve that is flooding the market, but They still have the same challenges, which is they have to be, you know, abide by the government sanctional rules. And we all, we’re not saying that there isn’t something, you know, behind, this from a, you know, like a political noise. Okay. But we do know that some areas of the country, have never even stopped. And those ones that never stopped, just absolutely. We’re amazingly, we saw record, you know, because there was nobody else advertising. Right. So,

Erica: Yeah, when we go into the data shortly, we will show one client that kept going through this whole thing. you know, hundreds of leads at great prices.

Matt Coffy: Yeah. And whether they book now or they book later or they booked, you know, to, to go at some other time during this year. The whole concept is, is that the data, the, the pure ability to bring in the database of clients, the phone numbers, emails, text messages, all that stuff, they’ve got hundreds and hundreds of new data points to now market to forever. And that is an interesting point, but really what I want to talk about is, is your numbers that, you know, we’ve see directly in, in the systems. And I think, you know, one of the things that we could do is, is really talk about things that would make sense, for other practitioners to really think about, you know, this is, this is your business, this is the things that you do. These are the abilities to, you know, run through, some of the elements that we could certainly, you know, elevate as, you know, practice specific. But our, our main bevy here is this is how you now have to react. Meaning that there’s no going back to the old way. There’s no past. It’s today. It’s, if you can just think as neutral. It’s like, look at where we are today and start marketing. And I want you to start with some of these things that I’ve seen like in the last week, which are incredible. So let’s screen share and let’s see what’s happening with the numbers.

Erica: Okay.

Matt Coffy: So let me know if you have any challenges with this. Got it.

Erica: Okay. So I think, you know, it’s extremely important that, you know, when you do start up your practice, advertising that, you know, we’re going to focus on services that have, you know, demand right now. Things that people were really wanting during quarantine, like Botox, but you know, they couldn’t have, so this is one client, extremely successful campaign. we are running a Botox lead, lead gen ad, and we were generating leads for only $4 and 30 cents. So this customer kept going through, you know, the entire pandemic for, you know, $3,800. They generated 893 leads. So, I mean that, that’s pretty crazy. You know, if one of these patients walks through the door and you know, represents, you know, anywhere from, you know, 500 to $2,000, I mean, you know, the return on ad spend is just incredible. They’re also running a CoolSculpting campaign, which I highly recommend. You know, if you have body contouring in your practice, that is an extremely safe thing to be doing right now. You know, it’s nowhere near the face. you know, you totally want to focus on body. and you can see this campaign kept going, the whole time they had cost per lead at $51 and we generated 124, CoolSculpting leads for them.

Matt Coffy: That’s it. Let me just break in for a second. What’s amazing to me is that the number is insane. Meaning meaning 893 Botox leads over the last, was it 90 days That’s like,

Erica: And about, I would say six weeks that I’m showing here.

Matt Coffy: Yeah, the numbers. Dang. I mean, you look at that and you go, Holy cow. And these are not, it’s not super small. But you know, I’d say mid range practice, small practice, you know, not like a bazillion locations but a couple of locations. All right. So this is great. So quick question for you and we’ll move on to the next one because I think people should digest this. The CoolSculpting could be a mix of inbound leads for teleconsults first to get a client to commit. Was there a two step process or was this direct CoolSculpting leads

Erica: A client was direct because fortunately for them they were only closed down for about two weeks. So they didn’t have to do a big focus on telemedicine.

Matt Coffy: Yeah, yeah. I was curious because what we saw with some of our campaigns is that some of them were now going to telemedicine for the pre call for, to prequalify the client prequalification, sorry. And then going into, you know, getting a commitment at that point. So it’s almost like, some of the businesses, because of the of the lockdowns have to sort of do a two step model. But it did work out at the end because the cost per lead was so cheap. Anyways. So, that’s why I was asking that question. Anything else you can tell us about this before Move on to the next one

Erica: I think, you know, it’s a combination of, of, of why we’re so successful here on these campaigns. So, you know, we, we picked services that we know there is a demand for, you know, on social media things that you know, already have, you know, value to the client. They already know about it. you know, these are not services like microneedling or you know, laser resurfacing that are better sold through education. Like within the office. People know Botox, they know cool sculpting, you know, it’s already branded, it’s already ready to go. So that’s really important when we select the service lines for social campaigns. That’s number one. And then number two is that, you know, our, our ad creatives, which I’m going to quickly show, Mmm. You know, we’re, we use models and offers, over and over again that we know work.

Erica: So like for example, this is, this is one of our ads. Mmm. They’re running a Botox special 10, 95, some practices do $10 a unit. This ad has performed awesome over time. this particular model has done well. that’s, that’s one thing I want to hit on. And then I also want to show the video, but, my screen, hold on, you’re bear with me. Okay. So, for CoolSculpting we have been, just running these awesome video type ads. They’re interactive, you know, great thumbnails. So we’re getting, you know, great click through rates and that’s what’s keeping our cost per lead down on these types of campaigns. you know, a lot of call to action. You know, we have the discount right on the video, right in the headline, you know, a strong, you know, tag here, book now, not learn more. right. So we’re providing value where we’re telling them, you know, all of the benefits of the treatment. So, you know, I think it’s a combination of selecting the right service, a great offer, and a good creative. So I think that’s what’s so important here.

Matt Coffy: Perfect. All right, let’s get onto the next, client example and then let’s, let’s take a look at that one. Cause I love that we’re doing some Google ads because to me this is so direct drive and let’s, let’s talk about what this really means. I mean numbers are insane.

Erica: Actually. You know what, Matt, real quickly before we move over to Google, I do want to show ’em one more example set of a client who is here. you know, in the Northeast and New Jersey where people are a little nervous. you know, we literally just launched this campaign this week for this client for Botox. It’s been running for four days and we’ve already delivered 56 leads. they got 25 leads for our cost per lead of $10 and 86 cents. I’m just like their main campaign where we were targeting like a local audience with interest. And then this is crazy. We have a remarketing campaign where we’re hitting their traffic from Google. again, on Facebook where we generated 31 leads for only $3 and 17 cents. So the high cost, you know, Google ad leads, we were able to convert them here. you know, with a second shot on Facebook for only $3 and 17 cents. So this client, he’s opening June 1st, he already has 56 leads in the pipeline just within the last three days. So I think this is super encouraging news.

Matt Coffy: Yeah. And so that’s a great story. I’m glad you brought that up before we moved to Google because we cross pollinate between Google and Facebook. And what that really means is that when someone’s in Google searching for a topic, they get tagged and then basically you can understand that your browser is searching all these topics and when it comes back to being now a browser in Facebook, and this works on phones and computers, it picks up that you were looking for Botox and then retargets the person with a retargeting ad. So it’s very, very smart. Things have gotten so quickly down the pipeline of being very, very hyper-targeted. And the another thing is that, that think about the history that’s been going on in these browsers that we can capture and cause really people to get low cost, adds by the fact that we’re collecting data. That’s why we keep saying the same thing over the people who stayed open, collected data, they collected all this information and now they’re able to really take advantage of it.

Erica: Yeah. And you know, this client had a little different offer there. They run a hundred dollar gift certificate. So yeah. you know, we can say this a couple different ways so that you know, you’re comfortable with how you’re positioning your offer to the market. I’m going to pull up ad words. Bear with me one moment. It got up blocked.

Matt Coffy: Yeah. Let’s say you’re, you have one of your tabs open already.

Erica: I can’t click to it because of the,

Matt Coffy: Oh, you got blocked in. Got it.

Erica: Meeting.

Matt Coffy: Well, you could scroll over sometimes too, but one of the things I was going to say while this is lighting up is that we’ve also seen a huge amount of people who have stopped advertising and then started back up again. And then what happens is that there’s an initial rush, on their ads. What we’re also seeing is that, you know, from a tremendous flow of pent up demand that when they, those first two weeks seemed to be just like a golden era, you know, before, before we even do adjustments. So this is great. This is the one I was looking at before. This is a OB GYN and that is just amazing to see conversion rates at 25%. I have never seen that before.

Erica: This is crazy. We just started running this campaign this week. I think, you know, it’s a perfect example that, you know, people had been on lockdown for, you know, two months. They have medical needs, they have issues, you know, they are searching for new physicians. you know, now is the time. You’ve got to get yourself out there ahead of the competition because people are looking for you.

Matt Coffy: Yeah. And the funny thing is as you look at the cost per click, which is $5 and 41 cents, that’s really, really cheap. I mean for Google, I mean I’ve seen a lot of costs. Yeah. For this topic, obviously a very low cost. I mean, you could get engaged four, you know, looking at this as just like for about 500 bucks. And what was this for the last week or so

Erica: That’s, this has been running for about a week. So the client spend, spent $400, they have 19 conversions and I just want to clarify that, you know, a conversion is, is truly a conversion. We have it set up where it’s, either a phone call or they are booking on the client’s calendar. So these aren’t just like miscellaneous clicks. These are, you know, real leads.

Matt Coffy: Yeah. And I think that proves that really important point is that when you start to think about what demand is in the specific vertical that you’re in the niche. I mean we’ve shown, you know, some amazing numbers, some amazing amounts of leads. But I, what I see is that it’s the actual seriousness and that is what I’m, you know, I’ve been telling clients is that the tire kickers are not out there right now. If someone’s coming to you, they’re doing it for real because they’ve been in a situation where they have either a condition or something that they need to, you know, get arranged. Or if they’re in the aesthetics world, they are, they’re chomping at the bit to get started. You know, we, we always get into a situation when we talk to clients about, we understand that the market is based off of like a percentage being sort of window shopping and percentage being, you know, engaged a hundred percent and then up percentage that are serious.

Matt Coffy: it’s like the seriousness of right now. It’s like, that’s the big thing that people can’t see is that it’s not only the conversion, it’s the post-sale conversion. So these are great lead costs, but they’re also converting to clients once they get through the process of being on a phone call or sitting in a chair, they’re converting to procedures. And that’s the, the big number that people don’t see is that this is very, very, revenue, specific, to a lot of clients. And you can’t always draw numbers and conclusions in the first couple of weeks, but that’s why we’re telling people, like if you’re thinking about getting started and you’re going to delay, it’s almost like, you know, the person who seeps, who sees these. There’s people walking by the store, walking by the store, walking by the store, walking by the store, and then decides to walk outside and say, would you like to come in You know, so

Erica: Actually grab them. They’re ready.

Matt Coffy: Yeah.

Erica: Someone else will.

Matt Coffy: Yeah. Thanks. Right. Great. Erica, thank you so much. This has been a wonderful discussion and I really appreciate you showing some of the numbers and we’ll come back in another 30 days and we’ll do some more of this. And it’s just awesome to see that the, the leadership of these people who have been out starting again or starting over or becoming new clients and starting their own campaigns have had just insane success. But they’ve stood up for the community. They become part of their own world of living a leadership driven pathway as opposed to waiting. See, because we know the wait and see people are still waiting and seeing they’re going to keep going until maybe the time’s too late and they miss all the opportunity that is being presented because of this. And so we don’t obviously want to say that this is enough, you know, take advantage of an opportunity. But I will say that the first movers and the leaders in their categories in these niches are the ones who are taking advantage of really what you’ve just shown us, which is an amazing ability for real patients with real concerns or want real procedures. And they’re serious to get started, as soon as possible. And some of them, obviously even lock downs might have to be delayed a couple of weeks or however long it might be, but cure is to get started. Absolutely. Thanks for having me, Matt.