Hey all – just wrapped up experiment 2, and I’m ready to report on results:
Experiment 2 hypothesis: By creating a ‘value funnel’ that offers content, funding opp, and tools for Social Entrepreneurs over the course of 2 weeks, we will warm leads to a point of getting more deeply involved with SCN. 20% of leads who go though the value funnel will pay us something for content we’re offering.
How we’ll experiment: I’m running $160 of Facebook ads and $90 of LinkedIn ads geared to drive email sign ups on Social Change Nation’s site. When someone opts in, they automatically receive a drip campaign of emails that contain videos on Social Entrepreneurship and and offer to get a $1k grant via the Goodvalchal. I hypothesize the campaign will have a 30% conversion rate (conversions in this case being defined as email opt ins)
Failure condition: Less than 20% of leads exposed to the ‘value funnel’ fail to buy in 6 months. Buy can be defined as: completing the goodvalchal or purchasing any level of content from SCN.
Facebook: $146.35 spent, 10 conversions @ cost of $14.64 per conversion (recall that ‘conversion’ for me is getting people on my email list)
LinkedIn: $44.48 for 11 clicks (conversion tracker wasn’t loaded correctly, so not sure how many converted, but it was not greater than 2)
Google Adwords: I had a $100 free credit on Google so I also ran that. I ran two adsets, one mentioning free tools for Social Entrepreneurs and the other offering $1k grants and free coaching. The more general adset had a CPC of $2.29, the $1k grant had a CPC of $2.35. Interestingly, the general one had no conversions, and the ad mentioning a $1k grant had 2 conversions, at a cost of $10 per conversion. That was a critical finding. It’s initial evidence that people will be more responsive to ads that mention the $1k grant than anything else. Also, a $10 cost per conversion is getting into the realm of reality for growing my list. While valuable learning can occur with this kind of cost per conversion, it is hard to really grow my list when I’m paying $10 per email. If I can lower my cost per conversion below $5 and repeat that reliably (AND wind up with some customers on the other end of my funnel) then I can really rocket Social Change forward.
The failure condition was met, as we only averaged 10% open rate on the automated email funnel that people entered as part of signing up. This is not good. In subsequent experiments I need to get more people opening and clicking the emails.
Which brings me to experiment 3…
Hypothesis 1: My email sequence is too long and too impersonal. Make it more personal, include an autofill field for their name, get straight to the point, and we’ll exceed a 25% open rate on our email sequence.
Hypothesis 2: Focusing our ads exclusively on ones that mention a $1k grant and running Facebook ads highlighting the $1k grant will result in a cost per conversion that is less than $7.
Failure condition 1: Less than a 25% open rate.
Failure condition 2: Overall cost per conversion greater than $7
All for now. Open to advice or commenting below!