Case Study

VEENSTRA’S GARAGELocal Mechanic Garage Receives

$8K Return On Digital Ad Investment

Veenstra’s Garage is an auto mechanic shop located in Grand Rapids, Michigan. In the past, Mike Veenstra (owner) has turned to direct mailing campaigns in order to generate new sales for their auto garage. While the direct mail campaigns were considered to be working, Mike was interested testing our ability to promote his offers using Facebook’s sophisticated advertising platform. Agreements were made, parameters were set, and we went to work creating the advertisements.

Over the course of 1 month, we ran a series of targeted Facebook ads promoting Veenstra’s oil change offer. Through continuous testing and optimization, we were able to narrow down our digital ad targeting to only the individuals who were most likely to claim Veenstra’s oil change offer. When finished, the latest digital ad targeting group accounted for nearly 50% of the total number of oil change offers claimed.

Oil Change Offers Claimed

57

Oil Change Offer Facebook Likes

14

Organic Oil Change Facebook Offer Shares

3

CLIENTVeenstra’s Garage

GOALS• Distribute oil change

coupon to new potential customers

• Increase new customer acquisition

• Increase sales• Increase average

ticket sales over $200 for new customers

DURATIONApril 1 - April 30

FACEBOOK AD RESULTS

Oil Change Offer Impressions

14,964

RESULTSSUMMARY

Increase New Customer Acquisition

Distribute Offer to New Potential Customers

Increase Sales

Increase Average Ticket Sale Above $200 for New Customers

$207

Average Sales Generated Per

Offer Claimed by New Customers *Projected based on research provided by Veenstra’s Garage

57

Total Customers

42(74% of Offers Claimed)

First TimeCustomers

$2,500

Lifetime Net Value of a Customer*

14,964 Advertising Impressions Delivered

$9,697 In Sales Generated

$207 Average Ticket Sale For New Customers

Lifetime Net Value of New Customers

Generated with Offer

$105,000

New Veenstra’s Customers (74%)

42

The results from Veenstra’s oil change offer were very optimistic. Veenstra’s reported a total of 57 oil change offers that were redeemed. More importantly, of the 57 redeemed offers, 42 were from new customers! The average ticket price for new customers redeeming a $12 oil change was $207.00, contributing a total gross sales of $9,697.00. Not bad for a coupon offer.

Going further, we asked Veenstra’s to assess the lifetime value of a new customer. They discovered that a new customer’s lifetime value averages around $2,500. According to their data, the 42 new customers acquired for Veenstra’s Garage equates to $105,000 in new business! Not bad, huh?

Try looking at it this way, for every $1 that Veenstra’s invested in their digital advertising spend, they received $14 in new sales generated for the company. You don’t have to be Mark Cuban to recognize that as a good business opportunity! Veenstra’s was so pleased with the results of their initial Facebook ad campaign, they doubled-down for a second campaign the following month.

RESULTSSUMMARY

According to their data, the 42 new customers acquired for Veenstra’s Garage equates to $105,000 in new business!

CONCLUSION

ROI RESULTS

LIFETIMEROI RESULTS

When used appropriately, Facebook ads can be a great way to reach potential new audiences and increase sales revenue. Facebook’s sophisticated targeting capabilities allow businesses to hone in on their ideal potential customer. For this particular campaign we used a combination of Facebook ad types, targeting parameters, and bidding strategies. One key variable we want to point on in this study, is the suspicious presence of Veenstra’s consistent branding throughout all of the web assets and in the store. How much of this campaign’s success can we attribute to great brand synergy? What is the overall of a great rebrand? What does a rebrand do for your new customer acquisition strategy? These are questions we’re passionate about solving at Deksia. You can start looking at your own brand strategy today by downloading our branding guide, found at deksia.com/thebrandingguide.

Total Sales Generated From Offer Claims

Total Advertising Costs

Total ROI

Projected Total Lifetime Sales from New Customers

Total Advertising Costs

Total Lifetime ROI

$9,697

($653)

$9,044

$105,000

($653)

$104,347

RESULTSSUMMARY

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