Scaling a Home Improvement Business from $3K to $70K Monthly via Facebook and TikTok Ads
Background
A small, local home improvement venture was facing challenges in expanding its client base, with monthly revenues stalling at $3K. Recognizing the importance of a strategic online presence, they explored the potential of social media advertising.
Objective
Increase monthly revenue more than twentyfold by leveraging Facebook and TikTok ads.
Strategy
Research and Analysis
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Examined regional home improvement demands and preferences.
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Crafted specific buyer personas based on regional demographics.
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Analyzed similar businesses' online strategies in the vicinity.
Channel Selection
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Facebook for sharing detailed project narratives, client reviews, and transformation stories.
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TikTok for engaging clips showcasing quick renovation tips, and glimpses of ongoing projects.
Ad Creation
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Produced high-quality, relatable content focusing on the tangible impact of their services.
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Incorporated CTAs such as "Discover Your Home's New Look!" and "Quick Fixes, Big Impacts!"
Budget Allocation
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Facebook: 60%
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TikTok: 40%
Implementation
Phase 1: Initial Exploration (Week 1-2)
A/B Testing: Rolled out diverse ads to discern the most effective ones.
Budget: Started with a conservative investment of $1,500 across platforms.
Phase 2: Fine-tuning (Week 3-4)
Metrics Analysis: Kept a close watch on KPIs like engagement rate and lead generation.
Ads Refinement: Narrowed down to the most impactful and engaging ads.
Phase 3: Sustained Effort (Week 5 onwards)
Budget Augmentation: Increased the ad budget to $4,000.
Content Diversification: Started featuring client stories, spotlighting team members, and sharing more hands-on renovation techniques.
Results
Key Performance Indicators:
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Engagement Rate: Grew from 1.0% to 4.8%.
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Conversion Rate: Shot up from 0.8% to 2.9%.
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Average Project Value: Boosted by focusing on all-inclusive renovation packages.
Revenue
The venture's monthly revenue leaped from $3K to a commendable $70K in a span of six months.
ROI
For each dollar spent on the advertising campaigns, there was a $15 increase in sales.