32 to 1 Return on Investment on Digital Lead Generation for Manufacturing Company Results in Favourable Acquisition
Andrew Simpson from Aether Automation invited me to his podcast, The Zoho Zone, to share about this incredible performance.
Sales & Expenses Numbers from 1st Year of Working with Proven Results Agency
March to February – 12-month Time Period
$1,395,352.62 - Closed Won Deals dollar amount from Meta Ads (Facebook & Instagram) in Zoho CRM $ 674,897.89 - Closed Won Deals dollar amount from Google Ads in Zoho CRM
$2,070,250.51 - Closed Won Deals dollar amount from Digital Ads Lead Sources in Zoho CRM
$18,885.01 - Meta Ads (Facebook & Instagram) Spend $15,445.15 - Google Ads Spend
$34,330.16 - Total Ad Spend
$28,500.00 - Agency Management Fees
$62,830.16 - Total Ad Spend + Management Fees
Return on Ad Spend (ROAS) Formula: (Total Sales $ amount – Total Ad Spend) / Total Ad Spend
72.9 to 1 - ROAS on Meta Ads (Facebook & Instagram) only 42.7 to 1 - ROAS on Google Ads only
59.3 to 1 - ROAS on Total Ad Spend only
Return on Investment (ROI) Formula: (Total Sales $ amount – Total Ad Spend + Agency Management Fees) / Total Ad Spend + Agency Management Fees
32.0 to 1 - ROI on Total Ad Spend + Management Fees
• Not including indirect sales from people who see or click Meta Ads that advertise their booth at trade shows and then buy at the trade show or from phone/email follow up later
• Not including indirect sales from people who see ads or click on ads and then buy from their local dealer
• 5-20+ touch points happen from initial buying research to making a purchase
Specific Actions We Took to Get This Incredible ROI
Over a year before we even worked with this client, we learned that they were deciding on a CRM system and advised them to choose Zoho CRM
Easy-to-use interface
Low cost per user
Robust functionality
Excellent integrations
Complete native integration with Google Ads
Leads & sales sync
Native integration with Meta Ads
Lead form ads import as leads
Manual export of sales from Zoho CRM and upload to Meta Ads
Complete native integration with Call Tracking Metrics
Automated as much lead data entry as possibly to save sales team time & eliminate data entry errors
Set up website visitor tracking for accurate lead source data
Set up website to import quote request & contact form leads directly into Zoho CRM
Set up Call Tracking Metrics to import phone leads directly into Zoho CRM
Configured native Google Ads integration to import leads, qualified leads, and sales data automatically
Monitored Google Ads to ensure sales data imported properly
Manually imported any sales data that didn't import automatically
Configured Meta Ads integration to import leads and qualified leads data automatically
Manually imported sales data when automation didn't work
Increased the frequency of importing sales data to get accurate data sooner
Made changes in ad accounts based on what specific things were driving sales
Looked for patterns in ads that were driving sales
Paused worst performing campaigns
Allocated more budget to the best performing campaigns
Key Takeaways
Advertising on Meta (Facebook & Instagram) is effective, even for B2B companies like manufacturers with 5 or 6 figure products and long sales cycles that can be weeks, months, or years from first contact to closed deal
It is possible to know the exact return on investment of your digital ads that resulted in direct sales that initiated with a click on an ad
It's more difficult to know the ROI of indirect sales from digital ads, but you have a baseline of the direct sales and you can estimate additional ROI on indirect sales
Revealing which specific advertising campaigns, targeting, and ads are driving sales gives you a superpower that your competitors don't have!
End Result
After scaling up leads & sales over a few years, the client’s manufacturing company was acquired at a favourable amount by the market leader in their industry.
The market leader saw the client’s company as a growing competitor that was becoming a legitimate threat to their once comfortable top position in the market.
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