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You have 100k budget to grow with paid acquisition in 3 months. How do you deal with it?
AKA What's the best way for you to invest 100k in paid acquisition?
Julien -- I'm no expert, but some random questions:
1. What is your average customer lifetime value?
2. How specific is your target market? (do you know who you should be targeting?)
3. Have you got retention nailed?
4. What specific business are we talking about?
Ok to give you more info... :)
It's a free product for users. Today, I can tell you we target 1€ CPA (so, 1€ LTV). It will be optimized in the future but let's say we can reach CPA max 2€. What I call CPA is a signup.
We have 30% conversion rate #signups/#visitors from free trafic sources (quora, forums, facebook groups, medium mostly).
We target expats (and students abroad and migrants, but mostly expats). The product is https://neomy.io so you can check what it is about.
We have retention but revenue is one shot for today (from affiliate marketing). Soon it will be more.
Very interesting startup and problems.
I think it's the Lean Startup that mentions 3 different engines of growth (viral, sticky, paid) -- and I'd assume that with a CLTV that is low, paid acquisition is not the way to go.
Are the other methods that have been working so far not scalable? How targeted are you able to get with your non-paid acquisition?
I agree with Nathan - knowing how much each customer is worth and how specifically you can target them is important. How do they feel about your category? Have you got an education job to do about your solution before they are ready to buy? These insights matter.
I would also suggest the stage your business is at will shape the answer; have you got a clear brand positioning, have you identified marketing messages that will resonate, and are you ready to 'catch' all the leads that come your way (this is the stage before retention). Otherwise you can burn up your 100K with lacklustre advertising that your audience simply ignores.
Thanks for your answer.
So, the product is neomy.io (see above my answer).
To complete it, a good insight is people don't look for what we propose (no monthly searches volume in Google) but love what we do when we see it. It's not education, they understand very well our value proposition, but they need to see it.
We have PM fit, traction and want to grow fast and at a good cost. We integrate the next batch of YC from january to march 2017 (with our big startup Moneytis, Neomy is an acquisition tool for Moneytis actually).
Retention is very good because we send alerts according to the exchange rate variations, so we nurture a lot our users with value notifications, no bullshit. And they love our product (we did a survey two weeks ago, 50% looove it, 45% like it, 5% don't care). Only emails and fb bot, no SaaS product.
Let me know if you need more
I also agree with Nathan - Similar questions came to my mind but in a different order, which is quite obvious as we all have different style of working.
My questions were:
1. What product are we working for?
2. What's the targeted area we're looking for? (What is our audience? local or global?)
3. Is this brand a new one or we're talking about a specific campaign for an old brand? (Current stage of brand also matters, though promoting a new brand isn't something to be worried about)
4. Do you have any other marketing operation going on right now apart from this planned paid campaign? If yes then what are the conversion rate from those efforts?
Having big budget helps but spending that budget wisely is what matters. Once you find your exact targeted audience you'll definitely get ROI, till then keep pushing and keep moving forward.
Hello! Thanks for taking time :)
1. the product is neomy.io (see my answers above)
2. Expats, mostly. Worldwide.
3. New brad (january 2016).
4. I did Adwords/Fb Ads test.
Adwords does not work because they don't search what we do. We tried to get them with exchange rates requests, we have 10% CTR but 1% conversion rate (compared to 30% from free trafic sources). Our ad is not fake, they like the value proposition, but they do not convert once on the website.
FB ads is ok but tracking is sh*t (like, really). Power Editor & Analytics data is so different, we can't have viable outputs.
Julien, honestly it sounds like you need hire someone who has experience with ppc.
From your answers to the questions asked - ie. what is the LTV of a customer (your answer 1€ is not correct. 1€ CPA does not equate to 1€ LTV ) you don't understand the metrics. And it may cost you time/money down the road.
You say adwords doesn't work. But, maybe you're targeting incorrectly.
Just because a user doesn't search exactly for what you do, doesn't mean they aren't interested. What related terms are they searching for?
I looked up one or two for you:
(keyword - monthly search volume)
best way to send money internationally - 400
send money abroad - 200
moneygram - 499,000
Also, I'm curious why you say that FB ads tracking is crap?
If you're trying to track it in Google analytics you might want to add UTM links to your ads.
From any PPC campaign your conversion rate will likely be lower than from organic.
Why not just do more of what's working?
Why not focus on growing your organic traffic instead of switching strategies to PPC?
Sounds like you're already good at getting organic traffic that converts. I'd double down.
As I can see your tool is quite interesting for the audience that sends money abroad. I can relate with this and already have signed up.
There's a really big audience waiting for something like this and saying PPC and FB ads won't work can be a huge mistake. I'd say you should go with Organic marketing and Paid campaigns together.
As Nick said it isn't necessary people will search the exact term you're selling but you can always target some relative term to attract them towards your website.
If it's not a product you can charge for (I see you mention affiliate marketing but not sure how your revenue model works), then one thing I would suggest would be optimising for organic search, with a keyword optimised site, and blogging to increase your reach.
Then to decide on whether paid promotion, as others have said you need to identify what a customer is worth to you over 1-2 years (hard to expect longer usage times for a new solution), and use this as a guide to decide how much to spend.
In terms of people searching for what you do, that may not happen. But you need to work through your customer journey to work out what they are currently doing in the process, and where you can insert your messaging to catch their attention at the right time. So they might be searching for exchange rates, exchange rate histories, predicting exchange rates, international money transfer etc, and targeted advertising with contextual messages could grab clicks even when they weren't searching for you.
In terms of improving conversion, at the moment you've got a home page and a signup page, but there's not much else to it. I wonder if that is affecting your conversions - if you provided more trust-building content (testimonials, deeper how it works, FAQ, savings calculator etc) it could help people feel more like trying it out.
Final point (and I don't know how significant a factor this is, but it stands out for me so I thought I'd mention it) - your content doesn't read like it's been written by a native English speaker, and I don't think the benefits are coming across as strongly as they could.
I'm the CEO of an advertising agency in San Francisco and have served in various in-house growth roles prior to starting my company. I can't directly answer the question as there are a lot of unknowns that you didn't lay out, but there is one fundamental shift that I'd recommend you make before spending any budget:
Start with your KPIs, not your budget.
Are you looking to drive the highest ROI on each user acquired? Are you looking to drive top line user growth at a certain CPA to show investors? If so, why is that CPA acceptable? These types of strategic inputs are immeasurably more important than budget.
If goals are clear, you can often achieve them. If there are no goals, it doesn't matter if you have $100k, $1MM, or $1B - you won't hit your goal.
Feel free to ping me if you want to chat in more depth: firstname.lastname@example.org
I believe you need to answer some questions first ..
What is your goal? In addition to spending this amount.
Who you want to achieve, define your person;
To define how you spend this value.
Focus on the goal and set goals to be achieved, because often it is not enough to just invest without having a goal.
All the comments above are good, but I would add to it - TEST and MEASURE!
Test all the different paid acquisition channels relevant for you and then refine accordingly so you can understand how to make the most of your budget.
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