Fantastic Sams is one of the world’s largest full-service hair care franchises with more than 1,100 salons across North America.
The Denver regional team from Fantastic Sams and Location3 Media partnered to plan and execute a more effective local pay-per-click (PPC) strategy for the 34 Northern Colorado and Denver-area salons.
When searchers clicked on an ad they were driven to a localized landing page that was geo-targeted based on average visitor drive time, geo-specific ad copy elements and location extensions automatically synced from Google My Business pages.
During the initial phase of the campaign we focused on data gathering and continuous optimization using insights from real-time user search queries. The data sets from new user search queries helped us identify trends had previously gone unleveraged by Fantastic Sams. For example, we uncovered an influx of search queries like “haircuts for women over 50/60” and “hairstyles for older women”, indicating a previously untargeted demographic seeking Fantastic Sams services.
This process identified a brand new customer segment that was largely untapped by Fantastic Sams, representing opportunity for increased revenue.
We used call-tracking technology in the PPC campaign to determine 18% of inbound phone calls were being abandoned by the caller before connecting with a Fantastic Sams representative. This led to two conclusions:
1. Some salons were not answering their phones consistently during business hours, representing an opportunity to improve operational efficiency for multiple salons.
2. In order to help reduce or eliminate the number of abandoned calls that were occurring outside of business hours, we needed to optimize all campaigns to only show ads during the time of day salons were open.
After four months of management and analysis, the Location3 team visited Fantastic Sams and dug into what the actual ROI of their campaign looked like relative to the true value of an individual customer.
Fantastic Sams worked with us to sync our PPC campaign data to their existing point-of-sale data. By matching phone numbers from their client records with data from our call tracking technology we were able to show revenue, client type (new vs. returning) and service type directly from the campaign. This is an analysis we are continuing to conduct on an ongoing monthly basis.
Some of the key highlights and findings include:
• The cost to acquire a new customer from PPC is only 25% of their lifetime value.
• The monthly revenue generated from a new customer via PPC is only 10% of their overall lifetime value, making customer loyalty a huge factor in measuring overall ROI.
• The customer breakdown from PPC campaigns includes 31% new customers versus 69% returning customers.