Updated: Jul 1, 2019
3 month case study of the Guam Postal Express
The Guam Postal Express has been a loyal, repeat client of ours since the inception of their business and our agency did a wide variety of marketing services for them including:
✔️ Creating their dba "Guam Postal Express" and its' nickname "Guam PostEx"
✔️ Their logo
✔️ Assistance in interior design
✔️ Lightbox design
✔️ Website creation, design, and maintenance
✔️ Facebook and Instagram accounts' creation, growth, management and maintenance
✔️ multiple in-store promotional graphic designs
✔️ Social media advertisement campaigns including the ad copy
✔️ Graphic designs for social media (i.e. FB banner, promotional pieces, etc)
We even went above and beyond our SOW and proofread and edited their official documents (mailbox agreement forms, customer memos, notices) as the owners were not fluent in English.
As you can see, our agency literally started with them from the ground up so we have a strong connection with each other. As we did many work for them and will continue to do more, we want to focus on the performance and results of our digital marketing services -- their social media growth.
We have been hired for three months from April to June 2019 to stimulate mailbox rental sign-ups at the lowest amount of marketing spend possible, and we were able to fulfill their request using the power of social media ads.
The end result? We have managed to get 50+ mailbox signups in the three month period, spending just $550 or an average of $183 per month in ad spend. Now, we can't really know if spending $550 for 50 signups is actually worth it without figuring out what the LCV or lifetime value of a customer is, so I will break it down for you. While there are more precise ways of calculation, for simplicity sake let's just say the formula is:
(average lifetime retention) x (average order value) - (customer acquisition cost) = LCV
AVERAGE LIFETIME RETENTION
Most people stay with one mailbox provider for their lifetime, but conservatively let's say this number is 60 months (5 years)
AVERAGE ORDER VALUE
Prices range from $144 to $240 per year per box, but during the three months, we ran a promotion of $10 per month.
CUSTOMER ACQUISITION COST
In this case, the number is $11 per customer sign up since we have spent $550 to get around 50 sign ups.
With the generated numbers above, the calculation goes as follows:
(60 months) x ($10) - ($11) = $589 LCV
LCV ($589) x 50 sign-ups = $29,450
The total value contributed to the business directly from the three month digital marketing campaign was an added value of $29,450 with a $550 marketing budget. I would say that's not a bad investment, considering most businesses overspend on ineffective campaigns in the wrong platforms.
BUT WAIT! Shouldn't you factor in the fee the business has paid you (the agency) to create and run these ads to the customer acquisition cost? Here's the net value after factoring the service fee paid to us. CAC goes from $11 per customer to $33 after service fee factorization:
(60 months) x ($10) - ($33) = $567 net LCV
Net LCV ($567) x 50 sign-ups = $28,350
To spend $550 for marketing + service fee to add a total net value to the business of $28,350 in three months is quite remarkable I would say. Even if we were to lower the lifetime customer retention from 60 months to just 12, the total budget spent (including service fee to us) turns a profit.
I believe the reason for this success is twofold. One, (not to toot our own horn) we create and run great, relevant ads. Secondly, our service fee is remarkably low, as we work with small businesses. But we don't just work with any company. We only work with companies and business owners we believe in and trust. There has to be a level of trust for this to work. Some campaigns work and some don't. Some campaigns take 1 month to achieve the goal and some take longer. Some takes a minimal budget and some takes a larger one. Without trust, goals won't get met, time and money will have been wasted for both parties, and agency-client relationship goes to trash - regardless of which agency you work with. And the thing that matters the most in this game is the net result. In this case, it has been a successful run with the business owner extremely thrilled. Here is her real review she left us on Google:
You can read the other 5 star reviews other clients have left us:
Here are some successful campaigns we ran for PostEx:
Another successful campaign we ran was to increase the Google reviews, as they had none. The reason it's important for a business to have a good amount of Google reviews is for SEO purposes and overall business branding. If you were searching for a service on Google and came across two different companies, who would you naturally pick? The business with no reviews, or worse, a negative review, or a business with multiple 4-5 star reviews? The answer is obvious.
While I won't share the boring details, we were able to leverage the existing happy customers which produced an end result of 36 reviews, averaging 4.9 stars! 36 reviews may not sound like much, so to put it in perspective, other mailbox companies have less than 10 reviews that average below 4 stars. Furthermore, majority of businesses in Guam typically don't pass 10 Google reviews unfortunately. Now, strategy isn't everything to achieve this kind of goal. It takes genuine care towards customers and I got to hand it to Emily (general manager) and Jaysel (customer service rep) for building such great relationships with their customers. Now, if you search "mailbox rentals" or "postal services" on Google, guess which company pops up first?
Lastly, I would like to share one more successful launch we have done. We successfully introduced food menu items including sandwiches, curry, and smoothies. Now, neighboring tenants visit the shop daily to buy lunch and snacks while checking for their mail. How convenient!
If you are a startup business or even an established business who haven't yet taken full advantage of the power of digital marketing, contact us and let's see what we can do for you.
If you are interested in working at our agency, please send your resume to firstname.lastname@example.org
Dong Won Lee
Film Director, Chief Editor | Klara M