140 – Case Study – Low Cost Per Lead During The Pandemic Times

In this episode of the ProfitEngines podcast, Matt and Erica discuss rather than pausing your campaigns altogether, a better strategy might be to try and leverage the market opportunities by optimizing your campaigns for the times and getting more bang for your buck!

Average Cost Per Clicks has dropped by over 50% across the board, which means that for those advertisers who do continue with their campaigns, they get to enjoy leads at significantly lower costs than before.

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July 20, 2020

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MATT:: Hey! I’m lucky enough to have some time between calls to get with Erica. We try and get together and do some real numbers, real time, real clients. You know, this is the real deal folks. You are seeing the true and tried processes of highly effective campaigns running. Erica, so happy to have you on board. Say hello to everybody.

ERICA: Hi! Thanks for having me Matt.

MATT: Yeah yeah yeah. Always always always always. And it’s good to get… I think the last one we did is about two weeks ago, so we can catch up on some new ones and we’re going to go through a bunch of accounts where we’re going to show cost per lead. And we’re going to talk about regions. We’re going to talk about what’s going on. We’ve got hotspots and not hotspots. And so let’s talk about a region. Let’s get into this first one here because I see something I really like: body contouring. Love it. Talk to me.

ERICA: Yeah. Okay. So this is a client who is in Manhattan. You know, obviously known as a super hotspot, you know, up to a few weeks ago. And, this client recently reopened and is getting, you know, just crushing it with their results. So they are running a monthly budget of a thousand for a body contouring and also for Botox. And you can see their cost per leads are $3.53 for body contouring in $3.16 for Botox. So they’ve been open for three weeks and they already have 158 leads that they’re working in Manhattan. So this is, this is just an awesome campaign right now.

MATT: Yeah. And, and truth be told that this is going to go up and this is not going to be forever. We know this, but this is what we told everybody, which is that they also have a pent up demand. Plus they had where they were collecting data on the downtime. So what’s happening is that they’re refreshing the people who’ve really seen these ads. So the real business and why we try and tell people is don’t shut your ads off when there’s a lockdown or a pause or a, you know, cause it comes back eventually and they’re reaping the advantages of this, which is that they have a good database built that they were marketing to throughout and now they go back, they hit those people again, they come in and they come in for dollars, instead of $50 a lead it’s $3 a lead. So just think about that. And these are really important things to consider when we’re all sort of, you know, we go from a panic mode to non panic to start to stop and all these consistency strategies always went out.

ERICA: Exactly. I think the thing to, you know, kind of keep the eye on the prize is that, you know, you’ve spent in this account here $523 only, and you know, like the average package of these body contouring, you know, patients, if they sign up is at least $3,000 and they have 67 people to work. So that’s pretty incredible.

MATT: Yeah. And in each area in the country is different. We have customers from California to New York to Chicago to Houston. I mean, we’re going to go through a couple here. Why don’t we move to the next client and let’s go somewhere and the rest of the world. Right.

ERICA: Okay. So we are going to move to Chicago. Another, you know, Midwest kind of hotspot. This client is also seeing a pretty good success. They have CoolSculpting leads running. They have 8 leads already this month with a cost per lead of $26, which is great for CoolSculpting. They’re running… You have a question?

MATT: I’m just, it just boggles my mind that we’re, we have $25 per lead CoolSculpting in a major metropolitan area because it’s normally 50 to a hundred. And, it just boggles my mind that the… and they’re sort of in a mid-area and they haven’t, they’re phased out a little bit more. So they’re a little bit further down the pathway with their, I guess, whatever the lockdown status they have, but it’s like a phase three/ phase four type thing. I’m always amazed when I see Botox leads under $10 and CoolSculpting under $50. Now, does this also have to do with the fact that CoolSculpting is allowing these other new offers like 50% off?

ERICA: Actually no. This account is running the old offer which is the 25%. Session starting at $600. So that cost per lead is real. It’s not like they’re, you know, offering the new 50% off promo of eight sessions.

MATT: Yeah. I’m wondering how well that will come across when people start to reorganize their ad sets, as they you know, decide they want to take that strategy. I think that’s going to be interesting. I think we’re going to get competitive forces in the market that we haven’t seen before that are going to be interesting to see as they calculate how they’re going to be able to push an eight session now. Eight sessions! And I, you know, about three to four hundred dollars per session at the end of the day after all of a sudden. Yeah.

ERICA: 400.

MATT: Yeah

ERIcA: 400. So 3,200 for eight.

MATT: Yeah. So if they’re running through, it’s the $3,200 return on investment for a $25 lead. It does strike an interesting balance if, you know, they do run and they get the same amount of cost per lead on the 50% off lead. So we’ll find out what happens.

ERICA: Absolutely. And the other really exciting thing about this account is that they have vein surgery leads at only $14 a lead. You know, that’s a surgical campaign, you know, anything under 50 to a hundred dollars is pretty incredible.

MATT: Absolutely. Absolutely. And, NPMD, are we talking about scleral therapy? Are we talking about spider veins? Are we, which vein, I’m just curious if, you know…

ERICA: So it’s a general vein screening that is an ad for either spider, varicose, or like pain in the legs.

MATT: Okay, got it. Yeah. Cause I know that the initialization for a lot of vein guys is to get that sort of filtering done, for insurance and/or for just capability to make sure that they’re a valid candidate. So that’s a great number for that initial screening, which if you could do that all day long and they end up with just even one patient out of those 15 leads, it’s beyond worth it. Right?

ERICA: Yeah. Some of these patients have, you know, four veins that will qualify for ablation. You know, they pay thousands of dollars of vein. So, you know, it’s just awesome.

MATT: Great. So now we’ve done New York, Chicago, I bet you were heading West.

ERICA: We’re going to Houston, a new hotspot. This is a plastic surgeons campaign. This account is running liposuction, breast augmentation, and Botox. And again we are seeing surgical leads for liposuction at only $15. So this month they already have 38 leads for lipo. They have 12 breast dog leads with the cost per lead of $40. Again, a fantastic, and then they’re also running Botox.

MATT: Yeah. And it’s interesting. Their Botox is high, but their light bulb is low, which is interesting. You’d think it would be the other way around. And I’m wondering if people are taking the advantage of, since they’re out of work or they’re off work to go and get hold done, you know, because they might be now working from home. I don’t mean off work, but maybe they’re working remotely. They’re like, well, of all the times before I go back in September or October, when things die down, let’s get the lipo done.

ERICA: Well. And I think this is also an area that opened up, you know, first. So a lot of people who were overdue for their Botox, they already got it. So that pent up demand is coming down. Also this is a very tough geo in Houston. There’s a lot of non-core physicians that are running ads for $8/$9 a unit. These are plastic surgeons. We are running it at 10, which is still pretty low. So I think that’s a pretty good explanation as to why it’s a little higher.

MATT: Yeah. And the breast dog for 48 bucks. I mean, that is a winner winner chicken dinner, because if you can get one of those 12 to come through, I mean, that’s a five to $10,000 off and, and we know that is right now. And again, I say the same thing. I think there are people making these considerations since they’re working from home, they have the opportunity to not have to worry about, you know, scars or whatever or recovery. So I always think that maybe this is the time that that plastic surgeons have really poured on, before the fall and have that opportunity to cause that’s what we found when we were doing some of the other hair transplant stuff, which is, we knew that that was a big winner right now. We’re starting to see a lot of, additions in hair transplant cause people are working from home. So they, you know, they don’t have that necessity to, you know, have that six weeks of recovery time, you know, in front of other people. Right.

ERICA: Exactly.

MATT: So there’s all sorts of ideas here. And I want to probably rephrase this podcast as our Tactical Thursday. Right. We should, we should think because man, there’s a lot of tactics in this and we’ll get in deeper to this, with going through some ad strategy, I think that’ll be our next one. Maybe looking at why things are performing, what’s performing well from an ad set layer and show people really cool stuff about how to AB test out their strategy in the second. So Erica, anything else you want to share with us at all in this particular subset?

ERICA: No. I think, you know, we pretty much covered it. I think, again, message to the surgeons, you know, this is the time to get your ads out there. People have the time, there’s not weddings, events that, you know, as many vacations, you know, this is when people can fit these things into their lifestyle.

MATT: Yeah. You don’t consider the fact that, “Hey, they’re not going anywhere. So the, the money goes somewhere else.” Like people still spend, maybe this is another reason to consider when you’re thinking about your ads right now, not even the validity of it, but the truth of the market is that if people go into certain regional lockdowns, they’re not going to travel out of state, they’ve got a, you know, a substantial income and they’re looking for something to do. This is another way out of sort of like a personal, it’s a positive personal body movement, which is an increase of people’s. You know, I guess let’s just say if they’re going to be locked down, they might as well feel better.

ERICA: Exactly. I mean, I think, you know, the data speaks for itself that the demand is there. People are definitely interested in these procedures right now that certainly hasn’t changed.

MATT: Yep. Very cool. All right. Awesome, Erica, thank you so much. And we’ll see you in two weeks. We’re going to do that another one of these, but we’re going to get tactical. We’re going to do another Tactical Thursday.

ERICA: Awesome. I’ll see you then.