Over the last few months I've come across a number of businesses who are enjoying exceptionally good sales results using Facebook marketing.
So I had a chat with Facebook Marketing Expert Scott Wilson the owner of Digital Influence.
Scott and his team are experts on business to consumer Facebook marketing and he told me there are two main reasons to consider using Facebook marketing to grow your sales.
Reason 1: People's habits have changed and they now spend a lot of time each day on Facebook (particularly with their mobile phones.)
So if you want to get your message and brand in front of potential clients then it makes sense to go where they already 'hang out' as it were.
In fact here are the latest Facebook user figures for New Zealand.
• NZ Total Monthly Active Facebook Users: 2.9 Million
• NZ Mobile Monthly Active Facebook Users: 2.7 Million
Reason 2: Facebook also gives you a range of ways to target precisely the types of potential clients that you want to communicate with.
Scott advises all his clients that the focus with successful Facebook marketing is to look at how you can help your customers solve their problems or reach their goals and dreams.
So you look at how you can give potential clients 'Value in Advance' before they spend money with you.
Scott has found that if you focus on giving 'Value in Advance' before you talk about your products and services you will get a much better result with Facebook Marketing.
Here's a great question to ask:
What could you give away for free that would be 'Value in Advance' before a customer spends money with you?
One of Scott's clients is celebrity chef Richard Till the owner of Richards Real Kitchen. Richard cooks fresh meals on Monday to Wednesday for his clients and has them delivered to their home ready to eat. (This part of his business was going well.)
Richard also has a selection of fresh cooked meals that are then frozen and this was a part of his business that he wanted to grow using Facebook Marketing.
Scott recommended that Richard give away for free one of his best recipes and this would be his 'Value in Advance'.
Richard was sceptical because he thought if he gave away his best recipe it would kill his business model. However he agreed to give it a try.
Scott set the whole campaign up using Facebook Messenger marketing.
This meant that when a person visited Richards Facebook page and commented on a post he had written they are instantly sent one of his best recipes to their Facebook Messenger.
The message they receive also has a link to Richard's menu as well.
So people can now see what he offers.
Richard recently enjoyed his biggest ever month in sales as a result of using this super simple 'Value in Advance' Facebook Marketing strategy.
I asked Scott how much money a business should spend on Facebook Marketing and how long should they test Facebook Marketing to see if will work for their business.
Scott told me that before you spend a single dollar on Facebook marketing you should first add the Facebook Pixel to your website. (This is a simple piece of code that allows you to build a custom audience from the people who visit your website.)
He also explained that I was asking the wrong questions about money and time.
Instead I should be asking these three questions.
1: What is the value of a new customer for your business?
One figure you might want to put in here is how much money a person will spend with you in the first year. So if you own a gym or fitness centre a person who pays $20 a week for a gym membership is worth $1,000 in sales over a year.
2: What is your conversion ratio of qualified leads into paid sales?
Let's say you give away a 14 day free trial membership for your gym and you get one person in ten who takes the free trial to convert into a paid membership.
Your conversion ratio in this example is 10 per cent.
3: What is the cost to get a qualified lead and a paid sale?
Here you measure the amount of money you spend on Facebook marketing and divide that by the number of leads and sales you get.
In a recent Facebook Marketing campaign for one his clients (a gym in Christchurch) Scott and his team helped them get 109 qualified leads in two weeks for a cost of $1.46 per lead.
From these leads their gym client gained 13 new paying gym members.
So if each gym member is worth $1,000 a year their cost for each new member was just over $12 each.
Now once you know these numbers you can decide how much money you wish to invest in a Facebook Marketing Campaign to get leads and sales.
So your focus with Facebook Marketing is now on the cost per lead and the cost per sale and not just on the amount of money you are spending.
My big lesson from chatting with Scott is that Facebook Marketing is something that can potentially work well for a wide range of businesses. And it's worth learning more about.
"We don't have a choice on whether we do social media; the question is how well we do it." - Erik Qualman
If you want to learn more about using Facebook Marketing then Scott has a free webinar training called "5 Steps To Creating A Sales Generating Facebook Messenger Campaign" that is worth checking out.