Prequalified leads are people who took the next step with you and filled out an application form of some sort... Click here to learn more about application forms!
Whether it was just a few questions helping us prequalify people to eliminate time wasters or a more in dept questionnaire to help get a better understanding if they are qualified for the program or service your offer, the application form is the trick to understand the lead!
On average our clients close anywhere from 80% to practically 100% of their prequals!
How To Measure Your Cost Per Prequal
In order to measure an accurate cost of how much you are paying Facebook to acquire a registration (or prequal) we are going to need to make sure we have a "Custom Conversion" pixel installed on the thank you page of the funnel.
If you do not know how to install a Custom Conversion Pixel. Click here to learn how!
Next... Set Up Your Reporting
Select Custom Columns, and then find your custom conversion that you created for the prequals and select both, 1. Prequals, & 2. Cost Per Prequal. We like to call it CPR or Cost Per Registration.
Measure Your Costs And Percentages
1. How Many Prequals Did You Get? - 200
2. How much did it Cost Per Prequal? - $4.40
3. Out of the 40 Prequals that you got, how many became paying customers? - 31
4. Why did the other 9 not go forward? And what is your follow up process for them?
Therefore you should have 31 paying customers which would be 77% conversion rate from prequal to sale.
Now you can measure you Cost Per Customer! (which btw is the most important metric!)
Cost Per Customer
So out of the 40 prequals, we closed 31 as sales. Therefore if we spend
- $4.40 per prequal
- That equals $176
- Which we closed 31 clients
- In which we paid $5.67 per client
That's not too bad if you are getting a client value of $297 or the client is signing up for a 28 Day Challenge that cost $297!, that is pretty good if you ask me, but we can still do better!
What about the other 9 prequals?
What about the leads who didn't even fill out the application form but still signed up to chat!
I have a prequal form too! I normally get around 96% conversion rates for my application form after they sign up on the landing page.
Those who don't sign up on the application page, we still contact them! And believe it or not, we still close them!
I sometimes may ask them, why didn't you finish the application form, and some may say, I saw a few questions and I didn't want to fill it out. And other say, I am a fit pro but I am not investing a lot into marketing.
But, they still signed up as clients! So we can not forget about them!
Make Effort To Contact Your Leads
Clients who have had the most success with FB ads are those who have a system in place for their lead to go through.
1. They use an effective CRM
2. They are very aggressive with establishing communications with their lead
3. They continue to provide value to their lead, by nurturing them with content related to what they signed up for
4. They have a more long term funnel that closes a more higher percentage of their leads
Create An Expired List
Creatively, I get about 3-5 clients per month just from my expired list alone. Do not forget about the leads who are just not ready to go forward just yet! They need some ultra nurturing. So continue to provide them value and you may close several later on...
Create an expired list where leads go to after a certain timeframe. So for example if you have a lead that you just wasn't able to close, and after a sequence of emails and text messages we can move them to a expired list where they can still receive value and wrap them back around to the offer later on...
Currently some of our clients are using a 6-month nurturing sequence where we can provide them with a consistent flow of content and offers!
Immediate ROI vs Long Term ROI
Don't get me wrong. I LOVE immediate returns. They are my gold! My bread and butter! However, I know that if I only go after my immediate returns, I am leaving a whole bunch on the table!
I had a lead the other day tell me he'd been following me for over 6 months and finally decided to go forward with our ads management service. Therefore how can you measure long term ROI?
If he originally signed up months ago, does that count as credit towards the sale from then? Or are we measuring also the touches he made on my various of ads such as a video ad I spend money on that he watched, that took him to a blog. Then another ad that asked him to sign up, and following that a testimonial video ad that he saw that made him want to chat?
How to measure all of this towards the sale?
This is where multi-step conversions come to play. There are also softwares out there that allow advanced tracking. Wicked Reports, and kissmetrics are great tracking softwares that I recommend you look into.
I use wicked reports and as you can see the entire flow or channel of one of my sales...
It shows where the First Click came from, then where the First Optin came from all the way to the sale! In the image above you can see this user clicked on of my testimonial videos, and signed up through a landing page.
Then purchased our services about 5 days later...
Okay... So Long Term ROI is Better?
Yes! I would say! Because I am able to close more people! Just in general my objective is to help all of the ones who sign up to chat with me. So in turn our goal is 100% conversion. Since we can not close 100% in most cases our goal is to at least get close to that level...
Stop relying on the 5% you close upfront to grow your business, and target the rest of the 95% whom you can help later on...
I wrote a very interesting blog about measuring your FB Ads spend and lifetime value of your customer! Click here to read it!