CASE STUDY: 29x ROI How A Gym Generated $24,381 In Revenue With $828.95 In Facebook Ad Spend

Want to know the one thing the fastest growing gyms and studios focus on: proven lead generation systems. If your gym is frantically trying to get new leads but struggles to hit targets each and every month, you need to read this case study.

Our agency, Amplifii, develops lead generation systems for high growth small businesses. As we speak to more gyms across the country, we see one scary trend: most gyms don’t have ways they will be generating high qualified leads. And when there are systems in place, they are not constantly being tracked, optimized or scaled.

I will outline what the 5 biggest mistakes gyms and studios make with their lead generation systems, but first, the case study!

The Challenge

Our new client is based out of San Jose, California. For the sake of anonymity,  we are going to call the studio SJS and the owner Mike. The main concern SJS had was consistency with leads being generated. Getting 20 leads in one day and then getting zero leads for 4 days was hurting the business.

When Mike approached us, they were working with another Facebook ads agency and the main issue with the old agency was that Mike didn’t know if the campaigns were profitable or not. That’s kind of important…just a little bit.

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This report isn’t helpful to gym and studio owners like you because it doesn’t tell you what is going on with your campaign or the performance of your advertising investment. As a business owner, you don’t want to look at these numbers. You need the bottom line; tell me if I am making money, if things are good or bad and what are you doing about it. I will show you what our reports look like soon.

Beyond the (lack of) reporting, key performance indicators (KPIs) were not defined or being measured. Two questions I ask to all gyms that are advertising is: are Facebook ads working and how do you know?

If you are currently investing in marketing and advertising, do you know what your cost per new member per advertising source is? New members per month per advertising source? Or your lead to member conversion rates? I will walk you through the exact metrics we look at to determine if we have a winning campaign on our hand. You, someone on your team and definitely your advertising agency should know these numbers and be working on improving all KPIs.

The Process

The first objective for SJS was to get clarity on benchmarks on the existing campaign. Amplfiii launched the campaign to collect data on performance metrics for the KPis. We looked at what was going on at the Facebook level as phase 1.

The metrics we were looking for here include:

  • Number of clicks
  • Cost per website click
  • Number of leads
  • Landing page conversion rate
  • Cost per lead

That’s it!

Why would we work on the backend, over the phone and in person conversation rates when no one knows the front end numbers. Here’s what the numbers looked like for every 100 visitors:

  • 100    Number of clicks
  • $1.70 Cost per website click
  • $1.25 Number of leads
  • 23%   Landing page conversion rate
  • $5.43 Cost per lead

These numbers are good, we know they can be great.

So we went to work!

Here are the 4 phases of every successful Amplifii client:

  1. Strategize
  2. Develop
  3. Launch
  4. Scale

Step 1: Strategize

With every new campaign we launch, the most important stage is the strategy. We determine the marketing funnel with the highest probability of a financial return for the client. Amplifii has worked with a variety of gyms across the country and we have spent thousands of dollars on behalf of clients to determine exact lead generation systems that generate highly qualified leads.

For SJS, we implemented the “Free Trial” lead generation system.

The steps of the funnel are as follows:

The three major elements of the lead generation system include Facebook ad, landing page and thank you page. In addition to the elements above, we implemented a follow up system for SJS. This included an email, text and phone follow up sequences.

Step 2: Develop

Once the strategy is in place, we start campaign development process.

The campaign development process includes:

  • Copywriting for ads
  • Copywriting for landing pages
  • Copywriting for email sequence
  • Graphic design for Facebook ads
  • Design and development of landing pages
  • Tracking setup of marketing funnel
  • Email integration between landing pages and email tool
  • Email sequence setup
  • Notifications via email and dynamic excel sheet

The one thing every gym client loves are the ways they are notified for each lead.

As soon as a lead is generated, the sales manager and general manager receive an email like this:

And each gym gets access to an excel document where the leads dynamically and automatically get pre-populated with the time the lead was generated, their first name, their last name, email and phone number.

This excel sheet allows us as the agency to see status of each lead as the sales manager updates the stage of the cycle of each lead generated with Facebook.

Step 3: Launch

Now that we have the strategy crafted and campaign developed, it’s time to launch!

Each campaign we launch, whether the goal is to launch local campaigns where the objective is to spend $5000/mo or national campaigns where the objective is to spend $50,000/mo, we start all of our campaigns small.

For SJS, we started the campaign at $20/day.

Spending $20/day allows us to start testing assumptions for the marketing funnel.

In the first stages, we are looking at Facebook advertising numbers to see how the campaign performs. To get our first set of benchmarks for the new campaign, we looked at:

  • Number of clicks
  • Cost per website click
  • Number of leads
  • Landing page conversion rate
  • Cost per lead

In the early stages of launching a proven campaign in a new market, the numbers are usually incredible. We will start seeing leads for $1-2/lead because it’s the first time the market is seeing those type of ads with the exact copy, images and landing pages proven to convert.

Naturally, the cost start rising.

This is why it’s critical to set the right expectations.

$1 leads are possible to generate for gyms and studios short term, but difficult to maintain across major metropolitans. Once the dust settled, the average of $3.50-4.00/lead. Here is an example of one of the campaigns.

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You can see the following performance numbers:

  • 170 website clicks
  • $0.69 cost per website click
  • 32 number of leads
  • 18.8% landing page conversion rate
  • $3.65 cost per lead

The 18.8% is much lower than the average 25-33% we get across gym and studio campaigns. Since the cost per website click was $0.69, we were still outperforming the original campaign and able to increase the backend conversion rate with higher lead quality, which led to higher close rates (an intangible that isn’t immediately obvious when you are analyzing Facebook ad metrics).

Step 4: Scale

After Mike and his team started closing deals and the campaign slowly became profitable, we wanted to turn up the heat! In this case, Mike didn’t want to be aggressive with the advertising spend because this was his first time to the Facebook advertising rodeo.

Personally, I love being outside of my comfort zone. It scares the hell out of me and looking back, it’s exactly what I needed to be doing to grow personally and professionally.

When a campaign is profitable, we want to scale. We wanted Mike to spend $500/week but didn’t want to move past $500/month. Bottom line, we wanted to be respectful to Mike and continued spending $500/month. You can bet we will be pushing him outside of his comfort zone to spend more and make more money for his studio 🙂

Beyond scaling ad spend, we started working on additional campaigns to generate different types of leads so he doesn’t live and die by one funnel. This is a huge mistake gym and studio owners make.

When a campaign starts working for you, don’t celebrate too soon.

Campaigns die, it happens.

So we have learned to be paranoid.

When a campaign starts really working, we double down.

We invest time in optimizing the campaign and we start developing back up campaigns ready to be launched as soon as the money maker stops performing.

For most organizations, it takes 1-2 weeks to create a new lead generation system. If you are generating 20 leads a day, that means you lost 140 leads or paid 2-3x what you were paying when the campaign was profitable.

Can your business afford to pay 2-3x per lead and still make money? Do you know?

We refuse for our clients to be in that position. So we get paranoid and take proactive steps to be ready when things come crashing. We are ready!

The Outcome

To recap, we started working with Mike and SJS when they were spending $500/mo on advertising a month and didn’t know:

  • What to measure
  • If they were making money
  • If the campaign is successful
  • And much, much more

With 45 days, we were able to:

  • Developed a tailored campaign leveraging one of our proven lead generation systems
  • Defined a business strategy to track, measure and optimize member growth
  • Optimized Facebook ad performance to stabilize leads per day
  • Implemented a sophisticated lead generation system
  • Provided follow up phone, email and text sequences to increase show up and close rates

This is the bottom line:


$828.05

Spent


$24,381

Revenue Generated


2,844%

Return on Investment


If you need world class lead generation systems for your gym or studio, complete this form or email me directly at nehal@amplifiicorp.com.

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