Start-up UK health service company earns £1.5m ($2.04m) with 4.2X ROI Google Ads in eight months and expands from two to fifty nine locations.
Enter — Expand — Hire
In November 2020, an established UK health service company, with two West-country based high street outlets, recognised the exploding interest in travel-related PCR testing in clinics, rather than at-home kits.
They had a new website, no SEO rankings, no social media, no email list – and no time to waste to establish and scale their new opportunity.
We had worked previously with their sanitiser products, and so they immediately started using Google Ads to launch their new PCR testing service, which started to see spectacular success within just a few days.
Over the next eight months, with ever-growing market demand, they then grew their business from two locations to fifty nine, with a return on Google Ads spend of 4.2X (420%).
They became so successful they were able to hire a full time, dedicated digital marketing team, and run unlimited budgets on Google Ads to outsell and outspend their rivals.
NB. This case study is in UK GBP currency. As of writing, £1.00 GBP = $1.38 USD
Massive business growth 2020 — 2021
Start-up to hiring a full-time digital marketing team in less than a year
Holy smokes!!!! 459 bookings and £80k today. Thank you David for being an instrumental part of our formation of the new business, and I wish you all the best with future endeavours.
The goal of the campaigns was simple – fill the clinics, all day, every day, as often as possible, for the right booking price.
No service business wants an empty calendar or seat. When you’re selling your time, all you want to do is show up and serve your customer, having already been booked and paid.
A very common problem with Google Ads is measuring results only by Cost per Acquisition (CPA). This completely ignores revenue, average order value, profit, and ROI. Many of your website visitors will buy a product they didn’t even come for, or buy more than one product (we’ve all done this on Amazon).
Unless you track actual sales revenue, you can never know how profitable your campaigns are. That stops you from optimising and scaling them. Many advertisers then misguidedly think Google Ads doesn’t work and often give up on it.
I consulted in depth with the client to know exactly how their business operates, where customers come from, how to target them, how to avoid the wrong ones, the clinics they booked and the revenue they created, target return on investment, and how to eliminate wasted ad spend.
All the campaigns had to be built from scratch, correctly targeted to specific radius-related clinic locations to minimize overlap, initially by towns, then more precisely by latitude and longitude.
As fast as they were getting bookings and filling their capacity, they were acquiring more partner clinics to service them, growing their capacity and business in line with insatiable market demand for PCR testing after COVID-19.
With correctly targeted campaigns reaching people searching for you on Google, you have less than an hour to make the sale. For a new start-up client like this one, that is only possible by using Google Ads, which can be showing to your target visitors literally within minutes.
Because they knew their numbers and operations so well, they could outspend and outsell their competitors, and continually increase their budgets and UK coverage with additional partner clinics.
In actual fact, due to integration and tracking issues with their website and booking platform, the campaigns were only recording about a third of the real bookings taken.
So the headline £1.5m revenue was under-reported and was more like three times that size, at about £4.5m. Projected annually from the eight months of my tenure, that means the business was on course from zero to £6m in a single year, subsequently supported by their website claim of “30,000 tests completed”.
Ultimately, rather than continue to pay a non-staff member, when they had made sufficient money, they hired a dedicated in-house digital marketing team. I carried on supporting them after they hired, allowing their in-house team to take over fully.
This has happened with six of my top twenty clients since 2005, and is the natural evolution of a successful company. I published my last book “Clicks to Money” on Amazon to tell another, similar client case study in a light-hearted, fictional setting.
This case study illustrates that even in times of unheard of uncertainty, sometimes very significant online business opportunities can arise for those with creativity and speed to market such as Google Ads is unique in providing.
This has never been more apparent than in the upsurge in popularity of Zoom, replacing and subsequently complementing live, in-person conferences and events.
Although many businesses including travel, transfers, hospitality, and leisure have been badly affected, nevertheless the fundamentals in money, business, campaigns, tracking and targeting in this case study remain as true and as important as ever for any business who can still trade online.