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Unlike major aircon retailers such as Gain City, Airconnection is an aircon contractor without a retail storefront garnering walk-in traffic. Their typical source of leads is from referrals by interior design firms.
While Airconnection was getting consistent referrals from its extensive network, it was difficult to grow beyond the current volume. With ambitious plans to be among the top players in the industry, Airconnection started to look for additional sources of leads to fuel the growth of the business.
They started by distributing flyers like all contractors do, but there was no results.
In the words of Airconnection founder, Nick Zhou,
“After distributing thousands of fliers, I got only 1 sale. I learn that this traditional method doesn’t seem to work any more.”
As an aircon contractor, their prices are lower than that of retail stores due to having less intermediaries and lower costs of operations. The initial fact-finding saw us being excited about their prospects because it was just the kind of business that can benefit most from going online(we kept our cool, of course). We somehow felt that online traffic can completely outperform foot traffic – even at a fraction of the costs.
It was not all rosy though. It is an uphill task to get consumers to be receptive to the idea of buying from an aircon contractor online. Afterall, they are used to buying from trusted retail stores like Gain city or Interior design companies.
Even though ecommerce giant, Lazada was already selling Airconditioners online, we decided that it was not a direction we should go into.
Without the same level of brand recognition, it is impossible to get people to pay for a product worth more than $2000 online on a shopping cart.
We brainstormed for a compelling online offer and eventually decided that we would create a landing page that gets people to sign up for a free site survey. This is a proven approach that can work because it helps consumers avoid information overload through customized expert recommendations.
Reason being; all of a sudden, consumers didn’t have to choose between more than 10 aircon brands & types. They only had to opt in for one offer. (More choices lead to paralysis by analysis according to psychologist Barry Schwartz)
In the 1st month, we were “figuring things out” and had a pretty high cost per conversion, as seen on the graph below. We targeted a wide spectrum of keywords and many of them yielded high clickthrough but poor conversion. We speculated that our landing page message is suitable for only select keywords.
Over the next few weeks, we collected a lot of data on CTR of different keywords, conversion rate of landing pages and bidding strategy of competitors. This generated significant insights that allow us to optimize the campaign for dramatically better results. We eventually home in on a group of good-fit keywords that transitioned well to our landing page. Conversions went up while cost per conversion dropped by more than 50%!
The best part of it ? Client feedback that they managed to close a good percentage of the leads generated.
In fact, the ROI(return on investment) on their budget was a whopping 11x or 1100% !
After about 1 year or so, client told has they have overtaken the traditional stronghold in sales of Aircon and became number 1 seller of Daikin Airconditioners in Singapore.
“The leads they(Ice Cube Marketing) provided come with a sense of urgency to buy. Importantly, we achieved a highly positive ROI from the campaign, not to mention the increased awareness for our company. We are currently scaling the campaign every quarter alongside capacity increment.”
Nick Zhou, Director
Airconnection Design Pte Ltd
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Topic: Avoid Price war and gain new customers
Date: 10 July 2024 Wednesday 3pm
Duration: 1hour
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