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Gerbz LLC is a transparent lifestyle business incubator. We're sharing what we learn as we validate our process for evaluating and transforming ideas into successful businesses.

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6PSBMLFB1 Results

I took my landing pages live on 10/18/13 and began driving traffic on 10/23/13. I sit here today on 11/18 a full month after launching armed with enough data to decide whether preserve or pivot.  Let’s revisit the questions I set out to solve one by one.

Can I reach my target customers using online advertising?

Yes.  Based on everything I’d read about internet advertising beforehand, I had a good feeling that this would be possible – but I still needed to prove it for myself.  Google Analytics tells me that from 10/18-11/18 I had 323 unique visitors to my site.  The overwhelming majority are from paid advertising though a few are from social profiles and organic search.

Which channels give me the best bang for my buck (ie convert best)?

Twitter.  Here’s the average CPA (Cost Per Action), in my case eBook downloads, from each paid advertising channel I tested.
Adwords Twitter Facebook Linkedin
21.72 4.95 8.27 5.91

Can an eBook be used as a foundation for telling my story and attracting/building a list of prospects?

Yes & No.  Turns out this is a two part question with two different answers.  The eBook played a critical role is attracting prospects and building a list.  But was it the best medium for telling selling my story?  I don’t think so.  More on this later.

Is my eBook interesting enough to drive sales of my product?

No.  Easy answer considering we had no sales.  But it was the eBook’s job to educate not sell.  It’s possible my sales page wasn’t up to snuff.

What language works best with my customers: Investor or Trader

Trader.  The results of language testing were a bit conflicting.  On my landing pages, I had 2 variations that used the word trader  and performed 12% better and the other performed 19% better. But, when it came to ads, I got higher click through rates when I used the word investor.  So what do I make of this?  The word investor targets a wider audience so it generates more clicks, but the product value proposition lends itself better to traders.   I may find instances where I can use these insights to my advantage.

Which price points result in most conversions at the highest profits?

Unknown.  Not enough customers reached the sales page to answer this question.  After the first few campaigns I realized this and ended the price experiment.  I dropped the price down to the lowest amount in the experiment for all users.

What is my baseline customer acquisition cost?

Unknown.  No idea since I didn’t have any sales.  However, I do have a good idea of my cost per lead.  The average across all my campaigns was $8.19 and the best (Twitter) was $4.95.

What are my conversion rates at each step of my funnel?

Here’s a diagram displaying my initial estimates alongside the results. funnel results

What is my overall conversion rate?

Unknown.  We learned a lot about various conversion rates along the funnel, but without sales I can’t calculate my overall conversion rate.

Why aren’t prospects converting into customers?

Multiple Reasons. But most importantly is that I don’t think enough prospects got far enough in the funnel to even realize there was a product at all!  Of the 56 people who downloaded the eBook there were only 14 unique clicks!  It is seriously unlikely that someone read the book, was engaged in the content and didn’t click any of the links.  To much energy went into only 14 people knowing the product exists, this needs to be radically improved. I reached out to the 14 people who did read the eBook and got one single response.  When asked “why didn’t you buy the product” the answer was, “I haven’t gotten around to it yet”.  It would be foolish to draw conclusions based on a single response, however it’s possible they see the product as being difficult to use or time consuming.  This could be improved in the copy.

Loop Tweaks

I realized I don’t have to wait till the next “build cycle” to make improvements.  Here are a few improvements I made along the way.

Patch The Sales Funnel

The first thing I did was patch up a leak in my sales funnel.  This simple tweak made a massive difference.  During the Twitter leadgen testing, 21 people  requested the eBook but only 8 actually downloaded it (38%).  After the tweak while driving traffic with LinkedIn, 17 out of 17 reached the download page. 100%.  BOOM.   On Facebook, 11 out of 12 (one even shared!).  This is clearly a major improvement, but did they read the eBook?  Before the tweak 19 percent of people who requested the book clicked a link within the book and after the tweak 18% clicked a link.  Virtually no change.

Hot Lead Notifications

The second tweak I made was based on a need I had as I was observing the results of my test.  I know people were reaching my product page, but which prospects had made it that far down my funnel?  It was a black box.  If I knew who they were I could ask them why they didn’t buy the product, send them offers, etc.  So, when a prospect requests my eBook, I cookie their contact info and email it to myself when (if) they visit the product page.  There is nothing better than getting an email with the subject line:
You have a hot lead!

Killed An Experiment

I was running an experiment on my product landing page to test which price resulted in the most purchases.  I realized about halfway through that this experiment was premature, so I dropped the price to the lowest amount (prospects re-visiting the page would still see the original amount).

Costs

So how much did I spend to figure all this out?  I spent $458.63 on paid advertising minus the $150 promocode Adwords sent me brings my grand total to $358.63.

Conclusion

This process took about twice as long as I hoped it would take and I want to work towards getting my loops down to two week intervals. I learned a ton about driving traffic from various sources and how much that costs, but the funnel itself is not converting.  It needs to be reworked.  I had 327 people’s attention, even if it was only for a second, and of that only 14 of them really understand what 6PS is. It’s clear what needs to be done.  I need to give people the information they’re looking for right on the landing page.  The eBook is not the right medium for educating my customers.  Let’s give them the information upfront before asking for anything in return.  I can make it educational and interactive customizing the experience to show exactly how 6PS can improve their specific situation.  After building trust and lending a helping hand, they’ll be much more interested in seeing what else we have to offer. This will require a pretty substantial build phase, but I think that’s what it will take to make this work.  So, we preserve.  We rework.  And we’ll do it again.