Problem
Following their re-opening after COVID (and perhaps punctuated by iOS14 changes), NYC-based aerial dance studio Body & Pole noticed a huge drop-off in the performance of their social media ads.
While Facebook ad analytics showed decent impressions, reach and clicks, the discount codes they tracked were often never redeemed. To identify why customers weren't converting, they played around with different types of offers, audiences and ad creatives, but nothing moved the needle.
Not only were they missing out on revenue, they were losing valuable ad dollars. They had a few theories on why their ads might not be performing. But without being able to speak directly with people who clicked on the ads, it was hard to confirm for sure.
Solution
When they heard about Gatsby’s new DM auto-reply feature, they had an idea:
Run ads telling people to DM them for the discount code. Then they could actually see who was clicking on their ad and more importantly, connect directly with folks who DM'ed but didn't convert, to figure out why.
The results were a smashing success! Within just a couple weeks of incorporating Gatsby’s DM auto-reply feature (and no other changes!), Body & Pole was able to identify why people weren't converting, implement the necessary changes, and increase ad conversions by 800%!
How They Did It
Test 1: Identify conversion drop-off
Body & Pole began running ads offering first-time students a discounted class, but they had to DM a special keyword 'Ready to Fly' in order to get the discount code.
While this first ad test got them hundreds of new followers and 15 people sent a DM with the keyword, no one used their code!
Clearly, there was something preventing people from converting, and now being able to see those 15 people DM’d the brand meant that they could chat with them directly and troubleshoot.
Through these DM conversations, Body & Pole was able to learn of two different issues that prevented new customers from redeeming their class offers. It became clear that users needed instructions on how to book their first class with a discount code, and that the current offer of a first class for $20 was too similar to the $25 first-time offer listed on the website.
They gave free class vouchers to these 15 users who provided feedback, and then went back to the drawing board with a new ad strategy:
Change the offer to a $10 class, and update the DM auto-reply to include very specific instructions for how to book a class using the discount code.
Within just 2 days of making these changes, they got 8 code redemptions, a whopping 800% increase in ad conversions. Clearly, these changes made all the difference! And using Gatsby’s DM auto-reply feature made it possible to implement.
Test #2: Implement the changes
With this valuable feedback in hand, Body & Pole changed the ad, offering a $10 class to further differentiate it from the regular first-class price on the website, and they provided clearer instructions for how to redeem.
48 hours later, 28 people had DM’d the keyword and 8 people had redeemed the offer. And while that number may seem small, it marks an enormous breakthrough after months with little to no progress!
“So glad and relieved the mystery of this ad might be solved” – Tracee, Marketing Director
Results:
- 800% increase in ad conversions
- 28% conversion rate
- 700+ new Instagram followers (1.79% increase)
- Solving the ad mystery: priceless
“Gatsby’s DM auto-reply tool helped us not only identify the problem, but increase our ad revenue to become more profitable. A double win!!’ - Katie, Social Media Manager
