Use this historical data to grow in 2024

If you're looking to grow your business in 2024, one of the best ways to do that is to look at historical data. And in this video, I'm going to be going through and deep diving on John Tory, a buddy of mine who's actually going to be on the channel doing a Q and A later this month. We're going to be going through and looking at his report for 2023. Customer acquisition costs. This is so important because when you're looking at growing your business and you're looking at bringing on new customers, well, new customers, there's a cost to them. Even if it is organic, there's a cost whether it's time or hiring a company that's going to focus on organic. We're also going to look at Google local service ads. We're going to look at his reporting as well as what it would look like specifically for your business. And then we're also going to look at ppc, which is pay per click, and how you can kind of come up with some numbers for that in this video. It's going to give you a deep dive on your business. So we're going to look at his numbers and then I'm going to kind of give you some strategies on what you can do for your business to lower those expenses. And also maybe even to do some of this yourself. Or if you're going to hire a company, I'll kind of show you what you should be looking for. So let's get right into this. We're going to first look at his numbers specifically because I think that's going to kind of lay the foundation. And he looked at H vac and plumbing companies. He's probably, in my opinion, done the most extensive research on home service data like this. It's hard to find these numbers out there. And so that's why we look at them so much. And that's why I value his opinion so much. That's why he's going to be on the channel. So what he found was from an organic perspective, right? This is like if someone goes on Google and searches and finds you, or even if they're on Facebook or somewhere else and they just organically naturally find you and go to your website or even, you know, word of mouth or anything. It's costing $90 for a new customer. This doesn't mean lead cost. This means new customer. So if you were to close, let's say 50% of your leads, then that would be 40, 40 or $45, whatever a lead. So $90 a customer LSA, which is Google Local service ads. He's showing that to acquire a new customer is $260. And we're going to look at specifically for your business and in your area. How much does this cost? And then PPC is at $405 for customer acquisition costs, which this seems very expensive to me. If you are not selling something that's over, you know, 2,000, $3,000, I don't know how this really makes sense for most businesses. And so we're going to look at how you can actually look at coming up with this number for your business, but also how you should be tracking this stuff for your business. So let's get right into this. So organic, what does this mean? Let's just do this quick search. So I'm gonna just redo this search. So this is. I'll put this link down below. They give you 10 free searches daily. We pay for this. So I think we get a thousand or something. But basically you can go and you can look and say H Vac contractor. So you can type in any keyword that you want. And then you can. Let's just say we want this to be in Washington, D.C. you can put in, you know, your specific city that you want to show in. And what this allows us to do is to see a neutral search results page. The reason that we want neutral is because it's not going to take your cookies and history into consideration. It's going to be truly neutral, as if someone who's Never searched for H vac contractor in Washington D.C. is going to look at as well. So that's why we want this as a pretty clean playing field. All right, so you can see this is your Google local service ads, which we're going to dive into next. Then you have your ppc, which is your paid ads here. So these people are literally paying right now for me to see this. They're bidding on this keyword against the competition. So they're paying for this. These people are not paying for this. And then these are your organic results. So Angie is number one. Then you have your Google business profiles. Then you have all your other organic ones here. So you have Yelp, you have this company. You have this company, right? There's a bunch of them. So from an organic perspective, what he's saying is that it's about $87 to get a new customer through organic channels. So let's look at some of the ways that you can get a new customer. So your Google business profile, if you notice here, these companies If I'm just looking at this, this company has 4.7 reviews and 49. 4.7 stars, 49 reviews. This company has 215 and 4.0. And so the one thing to notice is that all these companies are located in Washington D.C. so if you're located in a specific city that's, let's say outside of Washington D.C. you're not going to be shown here from an organic perspective. And so for your business, first off, do the search in your specific area to see if you show up here. If you don't show up here, there's, there's probably some issues with your listings. So your name, address and phone number is probably inconsistent. And also you probably don't have enough Google reviews, which is about 17% of your ranking. It's actually the third most important ranking factor. And so you want to make sure everything's filled out right. You want to make sure that you're getting Google reviews and that your name, address and phone number matches across the board. The next thing, let's say that you want to rank in Washington D.C. but you are outside of D.C. well, what you can do from an organic perspective, like this company right here, you can actually create what are called service area pages. So you can see H. VAC Contractor in Washington D.C. and this is going to be under the area serve page. So if we were to go here, this is not their actual Website, Presidential Heated Air.com this is their website within a service area page on top of that, specifically about Washington D.C. and so you can see that this page is all Washington DC. If you were to look here, their Title tags Washington D.C. their meta description is Washington D.C. and their H1 is Washington DC. And so we made content about this before, but from an organic perspective, this is how you can still rank in these areas while also not being there. And so from an organic perspective, these are some strategies that you can do to maximize your organic rankings. All right, the next one is your Google Local Service ads. So these are Google Local Service ads right here. And same thing, you can see this company, this is the company that we just went to their website, this company, they are in this Google Local Service ads even though they're not located in Washington DC. So even though they're not in Washington dc, they are still shown here. And the reason that they're still shown here is because they're running Google Local Service ads and they have a decent amount of reviews and they probably do a really good job of responding to reviews and working these leads, which Google only makes Money when someone clicks this button and they actually turn into a lead, which is why it's a pay per lead model. So if you can see he's saying that this costs $260 for a new customer from LSA, which is Google local service ads. And so let's actually look at how this is gonna play out for your business specifically. So what you can do again, I'll put this link down below in the description. You can go here and put in your zip code and then you can select how many leads that you want. So let's say that you want this zip code and then you're gonna say one lead. And then you go over here and let's say let's just do H Vac since we're playing in that. So what this says is that in this zip code, for 1h vac lead, it's 25 to $38 for a lead. And a lead again is when someone messages you or calls you. And you can turn off messaging, which we typically do, because with messaging it can get you more leads. But John actually did some research on this before that calls convert the best into actual customers, which is why everyone wants a call. And so if you just turn off messaging, then you only get calls. And. And so if it's let's say $25 a lead and you're closing these leads at 25%, well then you need four leads to close one customer, which would be $100 customer acquisition cost. And so these numbers change based off of how competitive it is in your market. And so I just picked this zip code. There's obviously a million zip codes and you can test it out on your business and you can see that what's in here. But this is a great opportunity to at least benchmark yourself for LSAs. And I believe he also takes into consideration if you work with an agency in these fees as but you will want to make it work within your business. So obviously for H Vac, this is a home run where we see like it get really competitive. At least I know I believe in this zip code. Yeah, like with water damage, like these are crazy 200. But if you're getting $2,000 jobs out of this, and let's say you're spending, you're closing 50%, so it's 400 for a new customer and you're getting $2,000 jobs out of it, that's 20% of your job is in marketing. And it's still high. You ideally want to be around 3 to 10% of your budget in marketing. But that's kind of how you can benchmark yourself off these numbers. All right, and the last one here is ppc. And the reason that this is most expensive and in my opinion, it's always going to be the most expensive one, which is why when people say that they just want to run ads, I get it. But let's say you have a thousand dollar ad budget, you're going to get two customers out of that when you could get 10 customers out of this if you actually do the right stuff and you could get five customers out of this. And so I'm not saying ads are bad. By all means. We have clients that spend, you know, 20, $30,000 a month in ad spend. But the caveat to that is that it has to be effective and has to make sense for your business. And if you don't know your numbers, then you're just going to be throwing money out there just to get clicks and you're not actually generating leads, which is the big issue. So let's just look at what this means together. So let's say you go here and this is a sponsored post and again, like I mentioned, a sponsored ad, they're paying for us to see this right here. There's a cost per click metrics. So let's say that your cost per click and any marketing agency could tell you this, you kind of have to go into the back end and figure this stuff out. But let's just say it's around $5 to get a click to your website. So if you're going to spend $5 to get a click, and these numbers can be all over the place, I've seen them as low as, you know, 10 cents and as high as like, you know, 30, 40 bucks. So to get a click to your website, most people don't know what their website conversion rate is into leads, which means if you get 100 people to your website, how many of those people are converting into leads? And that's a really good metric to look at because if you're going to be paying for clicks to your website and your website converts at 10% into leads, well then you're driving traffic to your site and then you're converting at 10%. So you can kind of figure out your numbers. But if you don't, if you're just driving traffic to your site and your site's not optimized for conversions and you, you don't even know how many conversions that you're getting, well then you're just really spending money here for nothing because they're going to a website that the links don't work. You don't have a chat widget, you don't have a solid call to action. You don't have someone answering the phone number, the phone after hours. Maybe your phone number doesn't even work. There's a million different things that we've seen. But that's why it can get really expensive very quickly if you don't have anything, everything dialed in for ppc. So I hope this video was helpful for you to kind of go through these and give you some ideas and strategies of what you can look for for your business. And if you have a comment or question, drop a comment below. We do some Q&As on this channel as well, so I'd love to be able to add value that way as well. And be sure to hit like and subscribe. We'll see you in the next video.