I was doing a social media audit with a FAM member the other day and here's how the conversation went down. He had 13 leads from one direct response ad. I had to clarify some things in regards to return on investment (ROI).
Me: Did anyone come in the office from the $211 you spent on ads.
Client: Yes, we had 7 people come in.
Me: You had 7 come in? Wow... That's great. Normally, what I'd tell you is that if you can get at least 30% of the leads come in, that's a good start. But, you're telling me you got over 50%?
Client: Yes
Me: How many signed up for care?
Client: 5 out of 7
Me: How much was that worth?
Client: Average patient value is $1,200 per person.
Me: So, you invested $211 and made over $5,000. Is that what you're telling me?
Client: Yeah...
Me: Tell me again WHY you stopped this ad? Do you see what I'm getting at?
We both had a a pretty good laugh after.
I've found this a lot over the years. Not having a true picture of the return on investment causes many business owners to turn off successful ads. This is a great example.
He thought he was getting too many tire kickers at first BUT the metrics told a different story.