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How we reduced ad cost by -92%, multiplied sales, and optimised the marketing budget

Biogena USA Inc. Case Study


Overview

The Objective

Get a piece of the lucrative US supplement market and grow the market share.

The Client

Biogena USA Inc, subsidiary of Biogena GmbH. Based in Austria with 300 employees and €60 million annual revenue in Europe (Austria – Germany – Switzerland – Italy).

The Problem

The client has limited success in the US with their traditional European marketing approach.
The CEO wants to try sales funnels for the US market and looks for a solution outside his in-house marketing department unfamiliar with the concept of “funnels”.

The Concept

Funnels have statistically proven to generate more leads and sales than websites time and time again.

Although the idea of funnels isn’t new, they got a lot more traction the last few years. Those who know how to take advantage of funnels in the digital era, WIN.

Elias Lewis 1910 AIDA funnel

The Execution

The Tools

Proven funnel software such as Click funnels is the best option to create funnels, widely used with a lot of options.

Facebook is the best online platform to get the highest ROI on your marketing budget and using funnels and Facebook, you create an enormous opportunity for growth.

Email address collection serves 2 primary purposes. Confirm people the purchase was successful, and it gives the opportunity to nurture the list and create future opportunities.

Active Campaign has some of the best tools to automate email sequences and create lists.

The Snag

The client created a new Facebook Business Manager and ad account.  A Facebook pixel was available, but it had only limited data (only 4 months), which would prove cumbersome at the start.

For those unfamiliar with a pixel, it’s a tracking tool that all platforms use to track our online behavior and preferences. This information is extremely valuable to find the people most likely to accept your products or services. (People that click ‘like’ on cat pictures, search for cat snacks, cat blankets etc.…. most likely have a cat…. And if you sell cat products, you want those people to see your ads).

The Setup

Without a proven offer, or product, or any proven audiences, everything had to be tested and validated from scratch. Doing all of this in a highly competitive market is challenging.

One funnel would be a direct sales funnel with a ‘Free plus Shipping’ offer, the other funnel would be a tripwire funnel with an Ebook as a lead magnet.

Lead Magnet Funnel Landing Page

Direct Sales Funnel Landing Page

The Journey

Patience 

With many unvalidated variables, the first few weeks (4-8) are all about collecting data, giving the Facebook algorithm time to learn and optimise. With only money seeing going out, and not much coming back, that can be mentally challenging at the beginning.

June 12-Aug 8, struggling campaign with over €3741 in ad spend and little progress. CPA distressingly high!

Just a picture to take the tension out after shocking results

Magic Bullets Don't Exist

Social media marketing is incredibly powerful and rewarding, but expecting overnight results will lead to disappointment.

Success takes time. The learning curve can be shortened dramatically with an experience partner, but it can't be eliminated.

How we do this

We follow a proven processes top marketer such as Russell Brunson and Todd Brown developed, and couple that with ad frameworks used by the top 1% media buyers in the world.

Steps to Success

  1. 1
    Through the process of elimination, we exclude audiences, ad types and funnels. As expected, conversions are far and in between with a very high Costs Per Acquisition – CPA – ($58-356 on a $4.9 product 😖).
  2. 2
    We pivot to the Free+Shipping Funnel model with an irresistible offer and started optimising the pages and the ads. We split test funnel pages and test the winners again with variations to find the best ones.
  3. 3
    We tweak ad copy, test different headlines, creatives and with every adjustment CPA’s steadily dropped and sales increased.

The Breakthrough

Improvement

With continuous testing and improving on all aspects of the campaign, we start to see significant drops in cost and purchases climbing.

Aug 8-26 with significantly less ad spend, €2211, a +490% increase in sales and a -92% drop in CPA

The Pay Off 

After 8 weeks, we  break the 100 purchases needed to create Purchase Look-a-like Audiences - LLA or LAL.  With those in place,  sales explode and CPA’s drop to $2-4 per sale! 

Funnels Use Up-sells

By offering the option for people to add more items to their order, you increase your total sales value per client.

Having this ability is the secret super power of funnels!

How funnels work

Funnels follow intricate steps and guide people through the buying process. 

A good offer, solid products or services that fill a need or satisfy a desire, are coupled with buyer psychology. Get a 'small' yes on a hard to refuse killer offer, that will lead, in many cases, to a bigger yes on higher priced products. 

With a front-end offer of $4.9, we now have a self-liquidating funnel that turns profitable.  30% of purchasers take bump offers or upsells, pushing the Average Cart Value – ACV – to $20.31.

Flow to Success

The Future

Expand and Scale

We have a funnel that is scalable for quick growth.

New territories such as the UK, Australia and New Zealand are now also on the cards in the future.

Biogena GmbH can grow from a European powerhouse to a global one.

The Power of List Building

We are adding a lot of new email addresses to the database, allowing for future sales through email marketing.  Not every interaction leads to a sale, but we have the ability to stay in touch with everyone and nurture the email lists.

Different Applications

The concept of funnels also works for lead generation and can be very effective building lists of fans for your brand.

Offer something of value upfront, in return for an email address. Once captured, you can nurture these leads and monetize your list.

Many business owners underestimate the value of email lists. You can present your products (but don't SPAM, and continue to offer value) for a long time, at no extra cost!  A $1-2 lead can be worths hundreds, if not thousands of dollars over its life time (Life Time Value - LTV)

Leads for $1-3

Your Next Steps

It will work for your business too

Funnels are used in every niche. For physical products, SaaS (digital) products, services, coaching.... from brick and mortar businesses (gyms, plumbers, restaurants, etc.), to service providers (dentist, chiropractors, lawyers) and online coaches.

Funnels will drive your sales, get you leads and propel your business forward in a way you will never achieve with a conventional website.

If you would like to see if funnels are a good fit for your business, or your would like to optimise an existing setup, just book a FREE 30 minute discovery call below.