2017, a locally owned family-run operation that had just acquired a second location reached out to me with a vision of changing the “stigma” of pawn. They had an incredible team, raving customers that their parents had been coming in before them. They were not growing as fast as they wanted.
From 2017 – 2020 we worked with this company on SEO (Raking Higher In Google) Which is another Case Study that can be found here:
Covid hit: The world changed and our marketing strategy had to change along with it. We doubled down on one customer avatar fact. 9 out of 10 people living around his store had never been into a pawn shop due to the “Hollywood Stigma” or had no idea what services were provided.
If we could convince just 1% of the metro to “try us out” that would be 12,000 NEW customers. How do we reach these people? The ones who are NOT searching for us but still need us? Answer: Social Media Video Ads…
How We Work
Phase 1: Understanding The “Who”
The #1 responsibility of a marketing team is to narrow down each campaign to 1 exact customer avatar. This is the exact reason most campaigns fail. “When you’re speaking to everybody, you’re speaking to nobody.”
Phase 2: Figuring Out The “What”
People take action for 2 reasons, moving towards pleasure or away from pain. So we must create offers, promotions, and stories that speak to these emotions. Example: School is here, tech is expensive, 30% off all Laptops!
Phase 3: The “How” To Reach Them
Google Search isn’t enough. We wanted to reach the people who were NOT searching for us. The ones who need us but don’t know us. The only way to do this is through social media video advertisements!
Life Time Value Of A Customer
When launching anything new, the question becomes “How do we track success, and is it worth it?”
Business is about numbers, as a marketer one of the most important numbers to know is what a customer is worth to your business.
For most pawnshops, the average customer is worth $187 the first year they do business with you.
The further back you track the data the more the average customer is worth to you. (You have customers doing business with you for over 20+ years. How much have they made you)
This means you can spend $187 to acquire a customer and break even the first year. If we can acquire customers for cheaper than that. You turn profits the very first year they do business with you!
For this client, we generated 172 new customers (From Facebook Ads Alone) for their business in the very first month.
172 New customers x $187 LTV in a year = $32,164 in NEW business PER MONTH over a year on average.
Do The Numbers Check Out?
$466,248 Service Charges
$1,628,000 Net Rev
$115,00 Lay-a-way Balance
Service Charges $722,668
Net Rev $2,007,583
An additional $31,632 per month in Net Revenue over the course of one year. The crazy part of these numbers. Service charges almost doubled. (This is DURING the covid Simmy Checks) yes, we GREW our loan balance during covid…