EP 37: Build Cost Effective Leads Through Giveaways

Episode Summary:

In “Build Cost Effective Leads Through Giveaways,” the Messenger Mastermind Team reveals its strategy of using social share contests to generate cost effective leads. We discuss how to generate leads from cold traffic, cross-pollinate your current list, and make cash flow on the back end to offset your upfront cost.

To learn more about the MM team, visit www.MessengerMastermind.co

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Episode Highlights:

  1. 1:04 How can you cheaply build lists going into Black Friday?
  2. 2:58 What are some giveaway strategies that can boost subscribers and User Generated Content?
  3. 6:52 The Giveaway Secret Sauce: Strategies to make a profit even with higher ad budgets on cold traffic
  4. 8:56 Increasing your SMS subscriber list by 50% with giveaways
  5. 12:15 Making your marketing stand out to customers in the crazy Black Friday email storm

 

Resources Mentioned:

  1. Facebook Messenger Tool – ManyChat
  2. Email Platform- Klaviyo
  3. Giveaway Platform – Upviral
  4. Contests and Giveaways – Gleam
  5. Email Platform – Mailchimp
  6. eCommerce CRM – Drip

Episode Transcript:

 

Jeremy: Welcome, welcome to another week’s episode of The Messenger Mastermind Podcast. As always, I’m your host, Jeremy Horowitz, joined by my incredible co-hosts, Mark Arruda and Ben Vandal.

 

Today, since Black Friday and the holidays are right around the corner, we’re going to be talking a little bit about how to build your lists to prepare for those massive sales events, and how to cheaply acquire those new leads that you can then develop for those massive events.

 

So, we’ve been working on a really interesting strategy using giveaways, and I will let Mark and Ben jump right in to explain how we accomplish massive list growth.

 

Ben: Yeah, so this strategy you may have seen in the past—there was a social share campaign, they work all different types of forms. They used to work a lot on organic social with just a hashtag or something, and getting your friends to share it. Now, they have built tools specifically for this that really help us cross-pollinate our list. Those are the things we want to talk about today.

Mark: Yep, so, the tools we like to use specifically: we like a tool called Upviral, although you have also heard of tools such as Gleam. Pretty much similar things. For the most part, what they are is they allow you to go in on the backend and plug in different channels that you want to attract more people onto. For instance, capture an email, get a phone number for SMS, you can even do smaller channels that might not be quite as valuable—things like, “Like our Fan Page,” “Follow Us on Instagram,” you can even get a little bit tricky with things and have ways to use keywords so that people can join your Facebook Group or different channels like that.

 

Ben: Yeah, those are like custom versions you would see. We use it in a lot of different ways—it’s very versatile for us. So, we can sometimes—optimally—collect an email address, a text message like Mark said. We can get a Messenger subscriber out of this, a YouTube subscriber. We’ve seen it used in all sorts of different ways. We’ve seen people send in user generated content. All really, really good things you can do with this contest.

 

Mark: Yeah. So, let’s back it up a little bit, because I think it might make a little bit more sense to people if we take it step by step. So, once you have your Gleam or Upviral built out, what it pretty much is, is that you’re offering a giveaway of some sort—a package, or a prize. People can enter this giveaway and you can stack each entry to be valued at different points. For instance, “If you give an email, you can give 10 points.” “If you join our Facebook Group, you can get 50 points.” And, you can allow people to enter as many of those things as possible, to give as many entries into the giveaway as possible.

 

Jeremy: Yeah, I feel like this is a fairly modern take on the classic giveaway process. You incentivize people to take as many actions as you want. We, particularly, subscribe to the list building process. So, collecting emails, phone numbers, Messenger subscribers, push notifications, grabbing UGC [User Generated Content] that you can leverage and use moving forward.

 

Then, basically, the tool: we prefer Upviral. Gleam also does this as well. It just automates all of that for you so that you can just dump traffic from wherever you have your major traffic sources into the giveaway, collect all of that information, build some sort of incentive. We typically like to use “Free Product.” It costs you next to nothing, but it can generate a lot of value down the road by getting all those new subscribers into your channels.

 

Then, basically just run the giveaway, fulfill it, and then, there are some other interesting tactics that I’ll let you all talk about—of how we transition that from not just list-building, but to also make some money immediately as well.

 

Ben: Well, first, let’s talk about who we want to get into this contest. We started off with—there’s two different primary goals of this contest. One is to get new leads through cold traffic, and the other is to kind of cross-pollenate your current list.

 

So, we’ll start with the cold traffic: it’s pretty basic. We use organic social, we use page social to start this content out. We send, basically, an ad out there saying what the giveaway item is—it can be a gift card, it can be a free product. Anything that really entices them. Obviously, the better the offer, the more likely a cold customer is to come in and join the contest. That’s how we get things rolling on the cold traffic side.

 

On the warm traffic side, what we do is a cross-pollination email. What you do is, you can email your list—whatever your strongest list is. You can use Messenger if that’s your strongest list, Text Message. Then, you send out a link to the contest page, and ask your customers to join the contest. What this might do is—you have their email address already, and you send this out to them—you might get a text message out of them that you didn’t already have, a Messenger subscriber that you didn’t already have, a YouTube subscriber you didn’t have, anything that’s valuable to you. It’s just another way for us to cross-pollinate our list.

 

Jeremy: Yeah, I think that all sounds great, I think that’s all super valuable. Then, from all of those other channels, you can funnel them through other processes, other tactics to drive them to a purchase, or to continue to build value.

 

And then, kind of transitioning: we have all these leads, we’ve spent the money on Facebook ads to drive them to this contest or giveaway. What do we do next?

 

Ben: Yeah, so, one great tactic that we use—because a lot of people ask, “How do you have money to throw out there behind the contest, you’re going to then pay to get people in the door to join your contest?” So, one thing we’ve derived here is an email flow on the backend to win back some of that money. And Mark can talk more about that. He’s kind of the mastermind behind that.

 

Mark: Yeah, we can slow it down on this, because this might get a little bit advanced, but it’s kind of the secret sauce to this whole method.

 

If we’re going to go spend hundreds or thousands of dollars on Facebook Ads, Instagram Ads, to bring cold traffic into this giveaway, we obviously want to do whatever we can to try to recoup some of that cost. We don’t want to go thousands of dollars into the hole and have to wait several months to recoup any of that. So, what we like to do is: we build out an email flow that is specific to this giveaway. So, anyone who gives their email to this giveaway, they’re opted into this flow. And this flow can just be something as simple as two weeks’ worth of emails. Maybe 2-3 emails each week, staggered out, maybe with some discount codes or added incentives to actually get someone to make a purchase.

 

So, we like to imagine that most of the people who are on this list have not purchased from us in the past. We try to make the offer pretty sweet for them, because we’re looking less in the sense of trying to have our biggest margin. We’re looking more in the sense of trying to recoup some of the cost that went into buying that cold traffic. So, we will lead with some more aggressive sales that we might not often put out, which is okay, because it’s pretty isolated into this closed email flow that’s not exposed to all of the people out in our ecosystem. So, we usually find that by having this email flow, we can recoup if not all, at least most—and in some cases, even profitable—in the end.

 

When all is said and done, we’ve gained a bunch of email addresses, SMS subscribers, Facebook Messenger Subscribers, et cetera. And, came out at the end profitable, because of the email flow.

 

Jeremy: Yeah, and we’re seeing a lot of the same success for our clients as well. Just to quickly rattle off some stats:

 

One client that we ran a giveaway for doubled their SMS list during the giveaway. Another client has seen a 50% uptick in Messenger subscribers. So, they’re very effective at acquiring the leads, and then if the flow on the backend is built properly, we can recoup the cost of gaining those leads, if not making money on this process.

 

Mark: Yeah, so the clients you are referring to: it’s good to look at each business’s specific goals and say, “What areas of that business would we like to build up?” We know that SMS is extremely valuable, so when we go and we build out something like a Upviral or a Gleam, we will give more incentive for someone to give their phone number. So, if an email is going to give them 5 entries into the giveaway, maybe an SMS will give them 10 or 20 entries into the giveaway.

 

When you look at it from our perspective, giving them an entry essentially costs nothing. We could tell them, by giving their phone number, they’re going to gain 100 entries. It really doesn’t matter to us. It’s giving them more of a chance to win, which is good, but it’s not actually costing us anything. So, that’s a good way to—like you said—double an SMS list.

 

Ben: Yeah, and the way that these contests work are really the social virality of the whole thing. The defaults for these are the customers giving their email address to get in, or whatever bar of entry you want to start. And, they’ll be asked to share the contest on Facebook, or share the contest on their Twitter, essentially advertising the contest for you.

 

Those are pretty low bars of entries. So, like Mark said, we leave the points very low for those. We make the custom conversions that we can remarket to them after far more rewarding for them to join. The SMS, the Facebook Group, the Messenger subscriber—anything that we can have them do that takes a little bit of work, we reward them for that. That way, when it comes time for the contest, they have the best chance to win.

 

And, like Mark said, it doesn’t really take anything away from you building the contest. You’re still only giving out that one prize. But, to the customer, if they jump through some hoops for you, you reward them for it, and give them a better chance to win.

 

Jeremy: Yeah, and I think the other thing to keep in mind here is that it’s not a sales-driven objective. The point of this is not to drive a sale tomorrow or the next day. It’s to build those lists to get them into the other channels, where—if you go back and listen to our old episodes, we talk a lot about how to build the value in each of those channels specifically—you just continue to build that relationship with them over time so that when you are ready to have a big promotional launch or a big product launch, those people are ready, warmed up, familiar with the brand, know what you’re doing, what your take on things is.

 

It really just prepares them, so that when you do want to send that text message or hit them with Messenger or an email, they’re really ready to buy from you.

 

Mark: Yeah. Like you said, how you mentioned Black Friday is around the corner, we’ll talk to a lot of businesses right now and we tell them that we’re prepping for Black Friday, they’re usually taken aback by that a little bit. But, now’s actually the right time to be doing it. And that’s specifically why we’re talking about this topic right now. Because, as we know, Facebook Ads costs are going to continue to increase during this time of the year, it’s going to be more competitive, the conversion campaigns are going to skyrocket in price, because everyone is fighting for that same conversion.

 

So, that’s why a tactic like this is extremely beneficial, because it allows us to—instead of fighting for that conversion attribution—we can go out and just drive traffic and get leads at a much cheaper cost, hopefully break even if not more on the back end with the email flow, and then as we coast into October, November, December, we’ve built out a really good list of leads from this campaign.

 

Jeremy: Yeah, I think the other thing to just throw on there is that email is going to become extremely cluttered during that weekend as well. The businesses that will have banner years for the holidays this season will really be thinking about how they really truly stand out from that extremely cluttered marketing mess of Facebook Ads increasing by probably 30%, people sending 10 times more email than they usually do over that week/weekend (now it’s kind of a month).

 

So, Mark, I’m going to steal one of your favorite phrases, but, “You can go to the traffic store now, and buy traffic very cheaply, or you can go to the traffic store later and spend way more money to get the same traffic.”

 

We are big believers in cheap traffic over expensive traffic if it’s the same traffic.

 

Mark: Yeah, acquire them now, keep them warm, sell to them now if you can, and then sell to them again later. As you bucket these people, put them into a flow that is going to make sure they are reminded of you throughout the coming months to make sure that when the time comes during that Black Friday holiday season, you are ready to go to sell them something. It will pay off in a big way, for sure.

 

Ben: And, I do have a couple of ninja tricks for those that do want to run this contest at home. Are you guys interested?

 

Mark: Yeah, of course.

 

Jeremy: Yeah, definitely.

 

Ben: All right. So, number one: I would use the lowest bar of entry possible. You can ask the customer for as much information as you want when you start the contest, but the opt-in rate will be much lower. So, what we do is just simply a name and an email. You can get the rest later on the backend, but you can do a lot with a name and an email. So, start there.

 

Two, you can link the contest as Mark said, on Upviral and Gleam, to your Klaviyo list, or MailChimp, or Drip, whatever you’re using. You can start that email flow that is so valuable in recouping that cost.

 

Another thing you want to do that’s super important is that when you’re running the ads for this originally, you want your objective to be landing page views, which is how they get to the contest page to opt in. Or, engagement. This is a social share campaign so the people that are most likely to like and engage with your page are the people who are most likely to start this contest.

 

So that’ll be your cheapest leads. You can get new traffic in the door for as cheap as 25 cents a head. Sometimes, 50 cents on cold traffic, which is really, really good. And, you get them both pixeled on your site, on the contest page, and again, you have about a 30% chance of getting an email.

 

So, those are some easy tricks to get started, and hopefully you’ll knock your next contest out of the park.