Autokorjaamo Vepsäläinen is an Oulu-based company founded in 2002, known for its commitment to quality in all aspects of its operations. They offer a 3-year quality guarantee and a 2-year travel warranty for their services. The company's price quote is never exceeded, and customers don't have to pay if no issue is found. Work is completed on time, and if that is not achieved, the customer gets a free replacement car.
It's great to be a part of such excellent business. The company has utilized Google advertising along the way, but satisfactory results weren't achieved, even though attempts were made to improve the advertising by other advertising agencies.
"Ads marketing was indeed done, and conversions were obtained, but the cost per conversion was so high that Ads marketing was not profitable for us," says entrepreneur Jussi Vepsäläinen about the initial situation.
The collaboration with Nostamo began in October 2020. From the outset, the results of the advertising have been improving steadily.
"Conversion quantity has increased, conversion percentage has grown, the cost of customer acquisition has halved, and advertising is now a profitable investment."
Outstanding results have been achieved by focusing particularly hard on improving the cost-effectiveness of advertising. For a service industry company, the cost-effectiveness of advertising is best described by the price paid for one conversion (inquiry). If a advertising budget of 100 euros has been spent and this has resulted in 10 inquiries, then the cost per conversion is 100 € / 10 = 10 €.
The improvement in cost-effectiveness can be clearly seen in the chart below, which compares 2021 (dark blue bars) to 2019 (light blue bars). Each bar represents the cost per conversion for a 3-month period. (The bars represent costs, so the smaller the bar, the better.)
In 2021, the cost for one inquiry is 59% less than in 2019. This has allowed for a 29% smaller advertising budget, yet 80% more inquiries have been obtained compared to before!
"It's great when Ads advertising works as automation and is continuously developed. When I can trust in Nostamo's expertise, I can sit back and watch as my business's customer numbers grow - profitably," sums up Vepsäläinen about the benefits brought by the collaboration.
The development of advertising is clearly visible in the preceding chart as well. In 2019, there was no clear trend in the cost per conversion; it fluctuated randomly. In 2021, on the other hand, there is a clear downward trend in the cost per conversion. Despite the collaboration of over a year, the results just keep getting better.
Even more clearly, the development of advertising can be seen in the chart below, which shows the total number of conversions achieved through advertising, i.e., inquiries. Between June and December 2021, nearly three times as many inquiries have been obtained compared to the same period in 2019, even though the advertising budget has been the same!