The Question: “How do you measure (return on investment) ROI when you’re a Digital Marketer and a client wants results? I feel nervous because I don’t know what to say!”
If I had a nickel every time someone asked me this question, or hoards of others like:
- How much do I have to spend on Facebook Ads to make _____(insert exorbitant amount of money)______?
- How can I tell if your _____(social media, blogging, FB ads)_____ are working?
I’d be bloody rich.
Here are some truths you MUST hold onto as a Digital Marketer when you’re dealing with clients who want solid ROI….hold on to your seat, my advice is a bit ironic.
#1 ROI is a legitimate question to ask. Don’t poo-poo it.
However, ROI is a complex metric to measure, and it’s your job to show them this.
Brand visibility and awareness from a paid FB Ad into a funnel may result in leads that don’t buy right away, but do later. Having an actual DIGITAL home to sell your goods means you’re set up to actually get money rather than just dream about it.
ROI isn’t always IMMEDIATELY about the profit in the pocket. It’s about the foundation that will build a LONGTERM sustainable business.
When someone asks about the ROI of a funnel, ask them if they asked their web designer, “What’s the ROI of my website?” Most likely they did NOT. Because websites are seen as legit digital real estate that hold the capacity to make money.
FUNNELS ARE THE SAME.
It’s your job to explain to your client that a funnel is like a deliverable in the same way a website is. Once it’s built, you can do a MILLION things with it.
- Attach it to a well-ranked blog post.
- Run ads (Facebook, Google, Instagram).
- Attach it to a pin that gets traffic.
- Share the link in front of thousands at an event.
- Attach it to a famous guest post.
They need to see a funnel in the same way they see someone plunking down $10,000 to rent the top spot in the center of town. Who would go to the landlord and say, “Well I’ll only pay my rent if you can promise me $50,000 in profit.”
Once the funnel is built, they can tweak, optimize, and advertise. If they don’t build a funnel, they will do none of those things.
Case in point: The CYLL funnel created thousands of leads that didn’t convert and then when we shut the cart down a few months later, scores and scores of unconverted leads purchased.
#2 Use math and then give a disclaimer
Assuming you have a great offer, great copy, great design, and right targeting…you should be able to rely on math loosely. But your client may not have the right numbers.
Know the numbers so your client isn’t confused about what ROI looks like.
Industry averages are:
- 20% of people open emails
- 1-5% of people buy off an Ad or an email
- 30-50% of people who register for a webinar show up to watch
- 10% of people on a webinar convert onto an application and sales call
- 5% or more of people who buy a tripwire will purchase the OTO
- It can cost anywhere from $1-$15 per lead
- Webinar leads are more expensive than PDF download type leads which are more expensive than video view ads
Check out this post for more info… Predicting Launch Profits
Know your numbers!
#3 Measure what you CAN measure
Just because you can’t GUARANTEE ROI doesn’t mean you should measure what you have control over. This means if you are a social media manager, track likes, follows, shares, and traffic. You can show the difference before and after.
If you’re an email marketer, track open rates and clicks.
If you’re a FB Ads Strategist or Funnel Builder, track the rates of conversion, how many leads, cost per lead, engagement, etc.
Track everything you can. Don’t hide your head in the sand and ignore your numbers. It’s scary and it feels like you’re on the hot seat all the time, but it will encourage you as you practice and get better.
#4 Educate Responsibly
When I explain funnels, ads, and marketing to my clients, I relate to them the following…
How much ROI can be figured out by a commercial or a billboard? Right?! Come on now. People have used this kind of advertising and paid good money without ANY certainty. Just because we can MEASURE everything doesn’t GUARANTEE anything. Nothing in life is guaranteed. Do not allow a client to bully you into a promise.
Explain that funnels are like babies. They need water, food, nurture and love. And they require an investment. And we have WAY more tools to help us understand our customer than with a simple billboard. They also can produce THOUSANDS AND THOUSANDS over the life of the funnel…but guess what…FIRST, it has to be built! Help your client see the value in making the investment to build one, even if it is churning out $1000 bills five minutes after its turned on.