Sales appointments? Online Sales? Or event attendees? What do you need more of…
“Measure twice. Cut Once…”
My dad has always been a handy-man around the house. Starting new DIY jobs before finishing the old ones.
When I was younger, I would spend my school holidays helping him with odd jobs and projects around the house, and these words have always stuck with me.
“Measure twice. Cut Once son… Remember, you can’t go back and add length to that plank of timber if you’ve cut it too short!”
And funny enough, this rings true to me today in business.
Being able to predict, plan and forecast KPIs and goals is vital for any successful ad campaign.
- What is the average lifetime value of a customer?
- What’s is your average order value?
- What’s your sales team average close rate?
- What is your required cost per acquisition to ensure a positive return on investment?
It’s no use spending $1,000 to acquire a new customer, when your average order value is $800.
You’ll be going backwards pretty quick.
Do you have the answers to these questions…
- How many appointments does your sales team need each week to hit their targets?
- How many online sales does your website need to convert in order to be profitable?
- How many registrations do you need to ensure your events go ahead with a BANG and you’re not speaking to an empty room?
Being crystal clear on these numbers will make or break your campaigns.
Knowing your campaign’s goals, you can then reverse engineer ad campaigns to make sure you’re setting yourself up for SUCCESS before spending a cent on advertising.
If you don’t know your required KPIs and benchmarks, then you’re shooting in the dark and likely throwing money down the drain.
This was the challenge that a Financial Advisory company had when they reached out to us to help get their first, free live workshop back on track.
After hiring another agency, who seemed to only confuse them and generate very few leads with only a few weeks until the event, they came to us out of desperation to ensure bums on seats at their live seminar.
The first thing we did? Sat down and got some clarity around their numbers.
As this was the first time they were running a live seminar, we had to rely on stats from their sales team based on phone conversations…
- Average live event turn up rate = 33%
- Clients average lead to sales appointment rate = 30%
- Clients Average sales appointment close rate = 20%
- Clients Average lifetime client value = $5,500
With an ad budget of just $3,000, and a target of 3x return on ad spend, we were able to work from the end, up and set the following goals:
100 Leads (33% turn up rate)
33 Attendees (30% convert to sales appointment)
10 Sales Appointments (20% Close rate)
2 New clients @ $5,500 = $11,000
With 2 weeks lead time, and a relatively NEW tracking pixel and ad account, the client had confidence in these numbers and gave us the all clear to go full steam ahead.
And the actual results…?
Total ad spend: $1,753
Registration: 100 Leads ($17.53/lead)
Attendees: 39 ($45/attendee)
Sales Appointments: 12 ($146/Sales Appointment)
Sales: 4 ($438/sale)
New Business: $20,000+
ROI: 11x Return on investment
So, next time you’re thinking of launching a new campaign to generate new sales appointments, drive online sales or fill your next event… remember to “Measure twice. Cut Once”