90% CPA Reduction? Yes, please. How You Can Capitalize on Q5 Right Now

Summary

Perpetual Traffic Podcast Episode Summary
Episode Title: 90% CPA Reduction? Yes, please. How You Can Capitalize on Q5 Right Now
Release Date: December 20, 2024
Hosts: Ralph Burns, Founder and CEO of Tier 11, and Lauren E. Petrullo, Founder of Mongoose Media

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Introduction to Q5 and Its Opportunity

In this episode, hosts Ralph Burns and Lauren E. Petrullo delve into the concept of Q5, a strategic marketing period that presents a golden opportunity for businesses to generate high-quality leads at significantly reduced costs. Q5 is positioned between the end of the traditional holiday shopping season and the early days of the new year, a time when competition decreases, and consumer visibility on social media platforms remains high.

Lauren E. Petrullo explains the origins of Q5:

"Q5 is a term I've been using since 2018, when Meta introduced me to that term and how this is a Golden Week or two opportunities."
(05:45)

Ralph Burns adds context to Q5’s timing:

"Q5 ends on New Year's Eve because on January 1, every health and wellness brand is like on their own New Black Friday because everyone's New Year, New Me."
(08:34)

Case Study Overview: Achieving 63% Quality Leads at 1/10 the Cost

The core of the episode features a compelling case study where Lauren shares how her team achieved a 63% increase in quality leads at one-tenth the usual cost during Q5. This significant reduction in Cost Per Acquisition (CPA) was accomplished by leveraging the unique conditions of Q5, where competition is lower, and audience engagement remains steady.

Lauren highlights the effectiveness of the strategy:

"We have clients that generate 30% of their leads for an entire year in this golden period."
(19:21)

Lead Qualification and Filtration Process

A crucial aspect of the success described in the case study is the rigorous lead qualification process. The team focuses on high-ticket information products, such as five-figure coaching programs, requiring leads to meet stringent criteria related to budget, need, and readiness to act.

Lauren outlines the qualification metrics:

"They have the budget to afford this high ticket... They have the need where we can provide them the group coaching environment and specifically that they are going to take action within the next two years."
(10:28)

Re-engagement of Dead Leads

The episode emphasizes the importance of re-engaging "dead" leads—contacts who have previously shown interest but did not convert. Lauren advocates against deleting these leads, suggesting instead to utilize them in negative lookalike audiences and reactivation campaigns through interruptive channels like Meta, TikTok, and YouTube.

Lauren advises on lead reactivation:

"Never delete a lead. Never delete a lead. So help me, do not delete any data you paid for. It's leverageable if nothing else in the negative lookalike audience."
(18:28)

Ralph echoes the sentiment, emphasizing lead retention:

"You never delete a lead. Never delete a lead."
(16:48)

Paid Traffic Strategies During Q5

Capitalizing on Q5 requires specific paid traffic strategies. Lauren recommends launching new lead generation campaigns or accelerating existing ones to maximize lead acquisition during this period. She advises against building new landing pages if not already in place and instead suggests utilizing native lead forms on platforms like TikTok and Meta for immediate results.

Lauren provides actionable steps:

"If you're not doing Legion, turn this on. You don't have a landing page. Go straight for the instant form... Start generating leads because... you have time."
(19:21)

Funnel Management and Booking Calls

Managing the sales funnel effectively during Q5 involves balancing immediate bookings with flexibility to accommodate leads' schedules. Lauren discusses the importance of allowing a buffer period for booking calls, as many leads may be finalizing decisions before taking time off for the holidays.

Lauren shares scheduling strategies:

"If you're doing Q5, I would recommend that you open up your calendars for larger because people are like, yeah, I want this. I need a buffer."
(22:03)

Ralph suggests experimenting with booking timelines:

"Try it both ways... Figure out, all right, does a delay actually affect my show rates?"
(23:22)

Final Insights and Recommendations

The episode concludes with Ralph and Lauren urging marketers to leverage the Q5 period by initiating or accelerating lead generation campaigns. They stress the importance of flexibility, continuous engagement, and maintaining a clean yet comprehensive lead database to maximize the benefits of this strategic window.

Ralph motivates listeners to act swiftly:

"Don’t be Rip Van Winkle. Don’t sleep on this. Be awake through the holidays."
(24:37)

Lauren reinforces the opportunity:

"You're starting the marathon two weeks early... You're going to win that marathon anyway."
(24:37)

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Notable Quotes:

• Lauren E. Petrullo [05:45]: "Q5 is a term I've been using since 2018... this is a Golden Week or two opportunities."

• Ralph Burns [08:34]: "Q5 ends on New Year's Eve because on January 1, every health and wellness brand is like on their own New Black Friday."

• Lauren E. Petrullo [18:28]: "Never delete a lead... It's leverageable if nothing else in the negative lookalike audience."

• Ralph Burns [23:22]: "Try it both ways... Figure out, all right, does a delay actually affect my show rates?"

• Lauren E. Petrullo [19:21]: "We have clients that generate 30% of their leads for an entire year in this golden period."

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This episode of Perpetual Traffic offers valuable insights into maximizing lead generation and reducing acquisition costs by strategically utilizing the Q5 period. By implementing the discussed strategies, marketers can effectively navigate the post-holiday landscape to achieve sustained growth and success.

Transcript

[A]

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[B]

You're listening to Perpetual Traffic.

[A]

Hello and welcome to the Perpetual Traffic Podcast. This is your host, Ralph burns, founder and CEO of Tier 11, alongside my.

[B]

Awesome co host, Lauren E. Petrillo, founder of Mongoose Media.

[A]

And today we're going to get right into it. No banter, no chit chat, just all content because people don't have time right now. They're shopping for last minute gifts. They're probably still at their laptops. It's late on a Friday or maybe early on a Friday and you've been up all night trying to figure out like how to squeeze more sales in before this Christmas rush is all over. So we're going to give you some inspiration here with a case study from Lauren E. Petrulo, who is quite adept in lead gen category, which we talked about here quite a bit. And I'm going to tease this a bit. The big headline is you're getting 63% quality leads at 1/10 the cost right now. And is that versus the stuff that you were getting Cyber Monday, Black Friday and like Q4 annually.

[B]

It's a blended annual lead cost.

[A]

So now is if we come to.

[B]

Black Friday Cyber Monday, then it's like for like a 20th, 100th.

[A]

All right, that would be an even better headline. No, but anyway, year over year, well comparing for the rest of the year, like, let's just make sure that we're accurate here. So baseline is the entire year, which probably includes Black Friday Cyber.

[B]

No, Black Friday is exceptional because it's exceptional.

[A]

It's pulled out. All right, so these are real pieces of data. Do you have anything that you can show us today or is it confidential? Because it's probably a client that has privacy, doesn't want you to show things, doesn't want everyone to know all about this. That's okay. We're going to take your word for it.

[B]

If you see the YouTube video, it's just like a. I will always protect the clients.

[A]

You don't do, like, all screen shares like we do. We piss off our clients a lot, actually. We try and blur them out as much as possible. Although one time we didn't. Oh, no, that was a long time. That was a very long time ago.

[B]

No banter. No banter.

[A]

That's right, no banter. Let's get right into it. All right, so how did you do it?

[B]

So right now you're listening to this. We are in the very beginning of Q5. Unless you're listening to this delayed, like jokes on. You should have listened to it sooner. And so Q5 is a term I've been using since 2018, when Meta introduced me to that term and how this is a Golden Week or two opportunities. Some people view Q5 as Christmas Day to New Year's Eve.

[A]

Are you claiming credit for that term, by the way?

[B]

No, no. Meta told me that term.

[A]

Oh, okay.

[B]

Meta told me that term in our meeting as we started strategizing. And since 2018, we've been incorporating it for our clients. And so this golden week, or golden weeks opportunity is something where we've had a big push because some of our clients get as much as 30% of all of their annual leads. In this golden period, you have least amount of competition and the most amount of visibility on social media platforms. This is not true that we have not found inbound marketing, like in interruptive marketing places. Absolutely. Very, very leverageable period. So we have been doing this for years, year over year. We have case studies where it's like blows out the water. When people are like, I trust you. They do it. They're like, oh my gosh, how do I go back to it? I'm like, you can't. This is your golden week. So the long story short is we're starting Q5. It is after Q5, when I say is the day after you can't ship in time for Christmas. All the e commerce brands decelerate their ad spend. A lot of them go on holiday vacation because they're like, oh, this is the only time of the year I can breathe and people are not working. And this is like our final stretch. So it's like our. We're starting a marathon two weeks before anyone else is even entering the race.

[A]

So just to clarify, if you're not familiar with the term Q5. We have used it here on the show before. But this is basically the period like you know, the time right after. Right before. Some people say after Christmas, not really, but it's right before it. It's sort of in this period where you're still maybe getting some Christmas time sales to a certain degree. But it's really, it goes into like after the first of the year. So it's sort of like a lot of people have different definitions of it. What's Your defin of Q5? Just so we're clear on what we're talking about.

[B]

So it started December 17th. US Post Office said you specifically in the US because it's the largest consumer market that we work with, you cannot ship anymore. If you order something on December 18th or later, you're likely not going to get it in time for Christmas or Hanukkah. And because of that, brands decelerate, they can't sell. And then the for sure is Christmas Day to New year's Eve. But Q5 ends on New Year's Eve because on January 1, every health and wellness brand is like on their own New Black Friday because everyone's New Year, New Me. So that category that vertical explodes where you have this like mini increase of competition in January because that's their Black Friday.

[A]

So the first day sort of back from work is technically is well really it's like the sixth. Really look at it. I mean if you look at the calendar because a lot of people are going to be taking obviously the first off and then there's like two days, there's Thursday, Friday. So I almost consider like Q5, like almost through to the six because that's like when people are actually back from work and then they're like thinking about other stuff. But anyway it's this in between period here which a lot of people take off.

[B]

I love it. Please take off.

[A]

Which is an opportunity for you, the marketer who's listening to this show. So let's get into this case study here which we basically just like this is in real time, ladies and gentlemen. So talk to us about the space. I know you don't want to talk about the company specifically.

[B]

Yeah.

[A]

What are they trying to achieve? What historically have their cost per lead been for marketing? Qualified leads, Sales. Qualified leads. What are we trying to sell here?

[B]

Hundreds of dollars, high ticket lead gen. We're talking about a product that's five figures. It's an investment.

[A]

This is an info product.

[B]

Yes.

[A]

Okay.

[B]

So it's in the info space. It's an investment.

[A]

Like what are we kind of doing here? Yeah, okay.

[B]

It's in the coaching space. So think it's like a mastermind, but it's like coaching in that kind of environment. So in that there cost really hundreds of dollars. They're booked calls, all the show up rate because you're selling High ticket. We know that high ticket is a long Runway. And so taking advantage of Q5 immediately, we saw immediately I'm looking at the numbers in 24 hours. 110 of the annual cost per lead price with a 63% sustained quality lead.

[A]

So we're talking $100 leads down to hundreds, multiple hundreds. Just give us some round figures here. Come on. We need more specifics.

[B]

$700.

[A]

$700 a lead for quality lead. And that's actually a good qualified lead. So sales quote, I'm talking sales qualified lead. They meet all the criteria they have. They have the characteristics that they're looking for. Maybe it's background, maybe it's past occupation, maybe it's current occupation, maybe it's income need.

[B]

It's like the budget to afford this high ticket. Do they have the need where we can provide them the group coaching environment and then specifically that they are going to take action within the next two years.

[A]

Okay, good. So you've got a definitive time frame. You've got like some sense of scarcity obviously, like with a time constraint. So in this particular niche, in this particular company, we are looking at what's the most important characteristic that you say, yes, they are qualified, no, they are not qualified or is an aggregation.

[B]

It's the affordability. Yeah. Because this is a very high ticket product.

[A]

Okay.

[B]

Tens of tens of thousands of dollars.

[A]

Like how much?

[B]

Close to 50.

[A]

50. Okay, so it's an information based. All right, got it. I get it now. Like you haven't even told me this stuff. I'm like pulling teeth here for the perpetual traffic listener. Trust me, they won't figure it out. Our audience isn't that smart. Just kidding.

[B]

They are that smart.

[A]

They are really that smart. They're like, who is Lauren talking about? Let's see, they're all googling it right now on their phones.

[B]

There aren't that many people.

[A]

Just don't Google while you're driving. By the way. We don' any of that. You can Google how you're walking your dog though. I mean you just like end up stepping in dog. I saw a lady doing that the other day as I was walking across the park. It was just like she's got her dog. Like, you know, she's on her phone and then she's like, oh man, it's like a law in Brookline. Pick up your dog's crap. But anyway, I divert.

[B]

Yeah, real numbers. The numbers during the Black Friday Cyber Monday we were looking at twelve hundred and eighteen hundred dollars per lead. Just to be transparent of like. Yeah, pretty good. This is a Runway and there's call centers that are supporting this. I want to be honest about like where they are and all that stuff. So yeah, high ticket supported by call center have the Runway to cover a four figure lead because they're selling a multiple five figure product.

[A]

Yeah.

[B]

And there is no downsell.

[A]

So how does the filtration process work for the lead? Is it meta lead forms? Is it hopefully it's probably not Google is my guess here because we still haven't figured out the lead gen issue. Although we just did a YouTube live on that two weeks ago where we were pretty getting pretty close. I assume that traffic is primarily meta.

[B]

TikTok social media interruptive marketing channels.

[A]

I've heard of those. Yeah. So it's a lead form.

[B]

We do lead forms and we do landing pages. So we have both aspects for sure. And then it leads into a book funnel.

[A]

Oh, okay. All right. So landing page or no. Or is it lead forms?

[B]

We do both. We do both.

[A]

Okay, so give us which one works better.

[B]

It determines on what is better in terms of what's taking the more immediate. The person who becomes a lead from a landing page has higher likelihood, a higher propensity of booking within the next calendar year.

[A]

Okay.

[B]

They're just jumping on the calendar and I'm, I should take that, not a calendar year. It's like they're booking if they're coming from a page. Let me take back. They're booking within 90 days, six months. And then we have a longer if they're just coming in from form.

[A]

Got it.

[B]

But we have people filling out both. So we're going after. We're not eliminating our excluding because this is such a long buying decision. We have people that are filling out that we're already leads that have already booked a call and they're like I need to talk again. So we're using social media to stay on top of them so that we maintain that we're top of mind. So just in that if anyone is in the info space or if you're in the high ticket space, I would not say like, please do not exclude people who have shown up on appointments before because people forget people made a decision and then they just need to be reminded that they made the dumb decision of not moving forward.

[A]

That's a really good point, actually. Everyone wants it to be so clean, when in fact humans are just chaotic. People forget.

[B]

We do forget.

[A]

They screw up. Like, they don't show up.

[B]

Yeah, yeah, they don't. Or they did show up and they told you not now. Or they had a difference in their budget. So I can say like a small, like little cool nugget is if you can go after people that were in your ecosystem two years ago, there's a really high likelihood that their income has grown. And depending on the quality of your product, you have not been forgotten.

[A]

Okay.

[B]

But I bet you forgot about them as a potential lead.

[A]

Yeah, for sure. Maybe you're getting their email still, you're just not opening them for sure.

[B]

Or it's. You think about it, you bring it in a conversation. You're on their vision board. Right? And a lot of people will just defer only to SMS and email marketing. Whereas, like, we leverage interruptive channels. So I'm going to keep using that because it's inclusive of Meta, TikTok, Snap, Pinterest and everything in between. I would even argue that YouTube can be counted on that just because of all those. But we can get on that debate later. But when you can use the people in your audience that didn't forget you and go back after them to get them reintroduced, you're reactivating dead leads. Some people have call centers that can support and make those call outs when you're inviting them, especially now in Q5, like, there's not a better place to get them to re opt in to what you're interested in to sell and.

[A]

To say so we just recently did a lead list cleanup ourselves and we do this many times for our clients, which is just good hygiene. Overall, however, you're sort of talking about, all right, somebody who hasn't engaged with me for a year, they might not have forgotten about you, they just have been too busy or they just. Whatever it was didn't really resonate with them that you're emailing them, SMSing them, doing whatever, and you're saying, what do you do with those people? That you might be sort of on the cusp of letting them go or sort of putting them into that dead lead list inside your CRM.

[B]

So people are like, I just delete. I don't delete. You paid for that data. How dare you. Because you can use that data as a negative lookalike audience all day long. You tell me that I don't want any more of these like zombies having reactivation campaigns. You obviously have a sunset flow that you're doing on both your emails and sms. You have your call team, your call centers, your whatever. Whether you're using like AI assistance or the like, you're reactivating that capacity. But sometimes people just don't want to talk or they don't want to open. And when you can use an interruptive channel, you have them sit on a list where you're just like a business as usual, top of mind type of campaign. You give them the opportunity with grace to re enter your ecosystem without feeling embarrassed or ashamed. Because if they respond to something where it's like, look, I've been here for two and a half years, they got a new haircut and they're reintroducing themselves as someone who's more successful who. Someone who still has that same need and who's ready to take action now.

[A]

Okay, so how do you do that? How do you re engage that lead? Because the reason is, is that I just looked into our lead flow two, I think it was three days ago and I looked at a massive lead that came up like ideal customer for us. And it was like I looked back to all the broadcasts. He didn't open.

[B]

Sure, sure, sure.

[A]

And then all of a sudden, boom.

[B]

Time, timing is now.

[A]

It was like all of a sudden the lights went out. So I'm thinking to myself, there's a silent salesperson that's sitting in his inbox. He's not opening it. I see them too. Yeah, you know what I mean. But am I disengaged because I'm not opening and should that lead list. This is the conundrum, I think, when it comes to emailing. And what's your take on it before we get into your paid traffic strategies? We want to do that very quickly.

[B]

Sure. You never delete a lead. Never delete a lead. So help me, do not delete any data you paid for. It's leverageable if nothing else in the negative look like audience. And then you have them on a forever. We call it a campaign drip. Even if they're not opening, they're showing up as ads. You're looking at your mobile phone, you're looking at your mobile phone, you're looking at your phone and you're reading your emails.

[A]

Look how the phone is there.

[B]

Car phone, house phone.

[A]

We still have a house phone, by the way.

[B]

I love that.

[A]

I know, Isn't that cute?

[B]

I want a house phone and I don't want people to have my mobile number so that they can't connect me when I'm out. But I'm just working on getting disconnected from my cell phone and being with.

[A]

A phone, that's probably a good idea because my mother in law doesn't really know how to dial our cell phones. But anyway, that's beyond it. So. All right, so that's great advice right there. Let's talk about the paid traffic strategy. So the lead form. And then after they fill out the.

[B]

Lead form, it's leave from our landing page right now in Q5 until at least New Year's Eve, my birthday, or potentially up until January 5th. January 6th, when people are back in the office. So you're listening to this. You literally have time. This is not a hard activation. It's if you're already doing Legion, accelerate your Legion right now. If you're not doing Legion, turn this on. You don't have a landing page. Go straight for the instant form, whether it's native Legion, because you can do Native Legion on TikTok, you can do Native Legion on Meta, you can do Native Legion on a lot of different platforms. But don't invent the wheel, don't create a landing page if you don't have one already. But start generating leads because I'm telling you, we have clients that generate 30% of their leads for an entire year in this golden period. Less Competition, more online Q5. If you're not taking advantage of it and you're listening to this, I swear, you just need to launch lead form, lead generation. If you're already doing accelerate that budget, do not hold me accountable. I cannot make any promises. I can just tell you what we have seen work really well and specifically we've turned them on. Like we literally have turned on our Q5 strategies and we are seeing significantly reduced now. I will say launching a new campaign so you can isolate that data and then you can make that a BAU and or accelerating budget. Yes, thank you. Making sure that if you're going to do a temporary pop, it's easy. Just launch a new campaign so that you can see and isolate that data. If you already have a lead gen campaign the way that we're doing it, just to keep it clean and easy data, we're launching a separate ad set. I know that's not like the most recommended. So there are people that are going to be like, how dare you, Lauren? Like consolidation is the dream. But I'm just trying to compare historical Legion against this new Q5 period. If you're able to listen to This I cannot make a guarantee, but I can tell you already the clients that we have activated our Q5 lead generation strategies are seeing immediate lift.

[A]

The statements said by Lauren E. Patrulo are not backed up by the company of Perpetual Traffic Incorporated. There's our legal disclaimer right there. Yeah, full disclaimers, Full disclaimer. Tell me about the funnel. Just quickly on the thank you page is. What do they get on the thank you page?

[B]

Depends on a per client basis, but also worth putting a book your calendar appointment now. Stole this from Kassim.

[A]

Let's go faster for the sales qualified lead, not for the marketing qualified lead.

[B]

No, we get both.

[A]

Both, really? So you're getting booked calls off this. So you've got the leads coming in, but you're also getting booked calls with the sales team, which around this time of year, as you and I have discussed, is a challenge from a scheduler standpoint.

[B]

Yeah, yeah. They're not necessarily. I mean we've got people that are booking in right now because they're trying to get in their stuff before they go on vacation because they're like, yeah, I'm ready to make a decision. I need to invest fifty plus thousand dollars now so I get it for my tax write off.

[A]

Yeah, that's important.

[B]

We have people that are like, I'm not going to do this. I'm not back in the office till after mid Jan. So they're booking out later. Now the challenge is like, we've got some clients that don't allow a large booking period. I will just say again, this is just me. I know many people have different philosophies on what their calendar open schedule will look like. I personally, you can't get on my calendar for five days. That's what we have. We have a five day block period because we're prepping for our calls. I know a lot of people are like, you can get on my calendar in 20 minutes if you can do it. And then I know other people that close out that calendar because if you can't book within the next three days, I don't want you. You have that immediacy period. I'm not sales enablement. I'm not vouching for any of that. But if you're doing Q5, I would recommend that you open up your calendars for larger because people are like, yeah, I want this. I'm on social media right now and I don't know my calendar and I'm not sure what my work life is going to be when I come back. To the office. So I need a buffer.

[A]

Try it both ways. This is all I will say the ending on this is. Try it both ways. And then be.

[B]

Buy flexible in your calendar.

[A]

Yeah, be flexible in your calendar. To start, take everything. But then figure out, all right, does a delay actually affect my show rates? So there is sales qualified lead, there's booked call, book scheduled call, then there's show rate. Look at all those individual metrics. Those are vitally important for you. A lot of the show rates are determined by follow up sequences which you can obviously do through HubSpot or any other CRM that you have out there. The point is, is like that's something that you need to measure, which I don't think we've even really talked about here. Should you be able to book immediately? Should you have to delay? I think there's pros and cons for both. It depends on what your price is. It depends on what your product is. So anyway, this is an incredible case study and very timely for everyone who has been grinding and probably burning the midnight oil the last couple of weeks.

[B]

Sorry.

[A]

Because maybe it's time to keep burning, get more candles.

[B]

But you have to know again, we do this for e commerce brands, we do this for high ticket brands, we do this for brick and mortars.

[A]

Don't.

[B]

Right now is an opportunity for you to get in front of new customers, new potential customers. There's not as much buying right now in that transparency. They're still buying because they're shopping for themselves. So you can't have the same conversion targets.

[A]

They're making decisions now for something that they're going to do later.

[B]

You're starting the marathon two weeks early. It's a long run. You notice it's a marathon, but why would you start. It's like I get to start my marathon on mile four. Everyone else is starting back there where it's crowded and you have to play Friday.

[A]

It's a head start. You're probably going to win that marathon anyway. Don't be Rip Van Winkle. Don't sleep on this. Be awake through the holidays. Work right through Christmas. Forget all those people calling your family. They really don't matter all that much.

[B]

You know, just work it.

[A]

Just grind it through. No, I'm just kidding. No, this has been awesome. Of course we'll leave links in the show notes here. Wherever you listen to podcasts, make sure you leave us a review and a rating. We're going to be doing some cool stuff here in the next week or so for our year end. Editions of Perpetual Traffic. We so appreciate you all listening to the show. We couldn't do it without you. And we also do it for you. So on behalf of my awesome co host, Lauren E. Petrulo, Merry Christmas, happy.

[B]

Hanukkah, Happy Kwanzaka, Happy New Year, Ciao.

[A]

Until next show. See ya.

[B]

You've been listening to Perpetual Traffic.