The Webinar Sales Funnel III: More on Conversion Profit Levers
In the last blog post, I introduced you to conversion profit levers, the metrics on your ad campaign that we can incrementally improve in order for it to provide higher returns. You also saw an example of one such conversion profit lever when we multiplied our Net Profit by approximately 7.5 times over by quadrupling our ad investment and hence increasing the number of webinar attendees. Today we’ll carry on from where we left off on the last blog post.
Your ad investment isn’t the only conversion profit lever you’ll encounter during your Facebook ad campaigns. In our Webinar Sales Funnel, the Cost per Visitor is another important conversion profit lever. If you remember, we had to pay $1 per click in order to attract leads onto our registration page. If we could pay $0.50 per click instead, our profits should double, assuming everything else stays the same.
And what about our Webinar Registration Page Conversion Rate? If 20% of the people we attract to our Webinar Registration Page end up registering instead of 10%, we’d double our profits yet again.
Furthermore, consider our Webinar Attendance Rate. 40% is pretty average, to be honest. It’s quite possible to get an attendance rate of 60-70% depending on the type of webinar you’re running. Consider evergreen webinars whose topics are always relevant to their target audience regardless of when they’re run. These typically see high attendance rates due to their content. And last but not least is our Webinar Sales Conversion Rate, the final step in our sales funnel.
These are all examples of metrics that we can adjust or optimize in order to improve our bottom line. And it may look quite simple when I’m explaining it, but remember, I’ve done the difficult part and gave you all these metrics at the very beginning of this series of blog posts.
Identifying what factors you need to tweak and focus on in order to make your campaign a success is always going to be one of the most difficult parts of running a Facebook Ads Campaign. Your conversion profit levers may not stay the same from campaign to campaign.
Our example was a Webinar Sales Funnel. Your business funnels may be different. Which is why I’ll say yet again, data gathering is crucial. It allows you to understand what metrics impact on your ROI and the conversion profit levers that you should be focused on optimizing. If you don’t know these things, then it’s hard to increase the revenue from your ads.
Even if you’re just getting started and have no data, it’s important that you do some projections of your expected numbers. You don’t need current data in order to calculate your break-even point. You also don’t need current data to make an estimate of your revenue. And just by doing this, you create some model or framework of what to expect from your campaign which can prevent you from making simple mistakes, like cutting off your ad spending too early.
In the next blog post, we start to tackle the High Ticket Avatar Method.