Benefits of a Chatbot: Turning $2k in Ad Spend into $70k in Sales
This Shopify brand made $70k from $2k in ad spend in their first two months using a Facebook Messenger DM system.
How did they manage this?
It's an open secret: chatbot automated conversations with potential customers who engaged with their Facebook page, website, or paid ads.
According to the brand’s CEO when asked about working with me and my team, she could not stop mentioning her conversion rate inside the Facebook Messenger bot we built.
Yeah, we can't blame her since it was 25.11%.
So that's it. They used the chatbot to drive $70k in Shopify sales using targeted marketing campaigns from only $2k in ad spend.
All this without the need for customer service agents.
I'd say the benefits of a chatbot are evident at this point, but this tech may seem daunting or out of reach.
I'm here to shatter that impression because, believe it or not, I'm about to break down their strategy to do this in one blog.
If we haven’t met, I’m Liz.
Since 2019, I’ve been running a DFY chatbot agency on a mission to change how online brands monetize their Instagram and Facebook channels, one conversation at a time.
On this blog, I share my strategies that help my clients make more money and increase customer engagement with DM automation.
Knowing Your Audience and Where To Look
This e-commerce brand didn’t have a big Instagram presence, with only 2000 followers.
What they did have were 14,000 followers on Facebook.
So, we knew the bulk of the customer inquiries would be on Facebook.
Since their target audience was women over 40, this audience responded very well to DM funnels inside Facebook Messenger, where brand loyalty lived.
As the brand’s CEO had mentioned in her referral email, they were heavily invested in paid traffic.
So if, like her, that's where your interest lies, let’s see how we leveraged the 25% purchase rate they were getting inside Messenger with paid traffic.
Breaking Down the Experience For Optimal Customer Satisfaction
I’ll break this down into two parts:
- What the customer journey in the DMs was like, and what got that 25% CVR
- How we achieved more instant responses with their social engagers: people who followed them and those who didn’t.
The concept was extremely simple here.
Like any other e-commerce business, they had a first-purchase discount in place.
Our only tweak was to make that discount more appealing and give people an offer that was only available within these specific customer conversations... and nowhere else.
Who doesn't love exclusivity, right?
How Chatbots Give You The Customer Data Your E-Commerce Brand Needs
When people engaged with their socials, they were sent an auto-DM that captured their email addresses and added them to the DM list before offering the discount.
These discount codes were unique to each person and expired 24 hours after being unlocked, quickly turning them into potential customers and discreetly increasing the value of the customer experience.
The email address was synced to Klaviyo, and an email sequence was specifically built for DM subscribers.
Once we jumped in, the need for human agents became close to zero, while customer engagement was through the roof.
Now, this brand also had these people who opted in on its DM list, which meant it could send out free push notifications via Messenger daily, promoting whatever product they wanted.
Where The Real Chatbot Benefits Come Into Play
You can do everything I just walked you through so far with ManyChat.
What you can’t do with Manychat is the following:
When people have their discount codes...
They WILL go and buy, right?
Wrong.
This is the same as if you were to send website visitors to a banner saying 20% OFF x product.
Do 25% of them buy?
Probably not.
1%-5% will.
This is where our DM sales system steps in.
This is why 25% of them bought over the following 2 months.
The chatbot waited for a purchase to come through from that user.
All while still being available to answer customer queries, provide instant responses, and meet customer expectations.
It watched customer data and understood how people buy, what made them buy, and why they didn’t buy.
Using this data, the chatbot led each user faster to checkout through personalized interactions that were unique to what each customer needed.
So, if an order didn’t come through, the chatbot started new conversations, educated, or showcased before-and-afters.
This works very well in beauty and fitness but can be adapted to any niche.
It answered FAQs and provided value.
For example, if you're in the food space, it can provide simple recipes people can use right then and there.
You can get as creative as you want with these conversations, but the most important thing is to keep them 80% value-driven and only 20% trying out different offers.
Our AI-powered chatbots are all about increasing the customer experience and handling repetitive tasks without the need for a human agent.
Once people purchase, the chatbot will continue to assist and nurture them.
It will collect customer feedback and offer upsells if they enjoy it.
These are just some of the benefits of a chatbot.
You Provide the Traffic. We Provide the Sales Game Changer
Before launching this DM system, one of our clients was only getting 8 DMs/day.
Sadly, there's no way to turn 8 DMs/day into $70k.
We need hundreds of DMs.
So, besides getting them to model our internal guidelines for posts and stories, that got people to engage with them, which triggered auto-DMs to be sent...
We also added a button to their website, which, when tapped, sent either a Facebook Messenger or an Instagram DM (depending on which of these messaging apps the user had installed on their phone).
Finally, we used their paid ads, and we used them in two ways:
- We sent out an auto-DM to everyone who commented on their ads
- We sent out an auto-DM to everyone who clicked on their ads
The final numbers?
- $70k off $2k in ad spend in the first two months without customer service teams.
- 82.21% of everyone who started a chat gave us their email.
- 73.69% DM list opt-in rate, meaning this brand now had a DM list and could send out promotional free push notifications whenever they wanted.
Why did this work so well?
Nobody is doing it right now.
There’s ZERO competition.
I’ve spent the last four years perfecting frameworks like these, particularly for e-commerce brands, coaches, course creators, and influencers.
The trick is having a good media buyer who is not intimidated by artificial intelligence.
Since we’re not a Facebook ads agency and we don’t run ads, we show our clients’ media buyers how to set up these ads.
We handle the backend, making sure the chatbot converts higher and higher.
But the media buyer must own the ads.
Whatever they're testing with their ads, they should be doing with the chatbot ads.
The Path to Increasing Customer Engagement and Sales is in AI-powered chatbots
The takeaway is that when you engage people in 1-1 conversations, you build relationships, which leads to top-tier customer satisfaction.
Relationships sell more, and a sales funnel inside Facebook Messenger or Instagram DMs can build the same relationships in days or hours that it might take an entire customer service team weeks to build with email and retargeting ads.
Without the need for ongoing monitoring.
If you liked this blog, check out this video here, where I walk you through how this Shopify e-commerce brand increased its sales by 14.6% in 7 weeks using auto-DMs, and follow me for more content on Facebook, Instagram, and Youtube.
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