I remember the first time I ran paid traffic to one of my online programs. It was one of the most exciting and terrifying experiences I have ever had. It was like going to the casino and throwing $500 on black hoping for the dice to land on it.
I had the expectation that if I just paid enough money, I would get people to opt-in for my offer. I thought I would just talk to them and be able to sign a few of them up. Simple, right? Not quite, and if you’ve tried paid traffic and took the same approach I did, you already know what result I got: disappointment.
So how do you know whether you’re throwing money down the drain or if you’re a simple tweak away from receiving a flood of qualified prospects who are ready to do business?
Here are the 7 key performance indicators (KPI) you need to track so you can scale and optimize your digital marketing campaigns for the best ROI. Based on how each KPI performs, we’ll discuss some of the tweaks you may need to make.
- How many people are clicking on your offer? This is one of the major factors that impact your time and financial cost. If no one is clicking, you’ll have to spend more time, and potentially more money to acquire prospects. You’ll need to evaluate your ad copy and aesthetics, or even the concept for your magnet altogether, then make adjustments based on what isn’t working. Focus on making one change at a time so you can split test your offer. This involves running two offers at one time to see which one performs better.
- How many people are opting into your email list? Getting clicks is one thing, but if few people are opting into your email list, you should think about the presentation of your opt-in page. Is it attractive? Do you offer an incentive? Should you use text or a video? Videos and images are often the most effective. You should also make it clear that email list subscribers will continue to receive valuable information from you when they sign up.
- How many people open your emails? Knowing your open rate is crucial. You could have the best information in the world, but if no one opens your emails, it doesn’t matter. The average open rate is 10%. Businesses that understand how to build relationships, write killer subject lines, and include compelling value in their emails receive up to a 35% or higher open rate. If you find your open rate dwindling, your best bet is to look at your subject lines. Your subject line has to make your subscribers want to read your email.
- What is your call to action (CTA) rate? How many people are taking the next step, often a consultation or trial of services, through your email campaign? An average of 10% will follow your CTA if your campaign is persistent and you ask enough times. This number can rise to between 20-50% based on how compelling your offer is. If you offer a direct sale, it will average between 10-20%. If you offer a trial of services or consultation, it can rise to 50% based on how you position your offer.
- How many people show up for your consultation/trial of services? On average, 40-60% should show if you take the proper steps. For example: Was the offer clearly communicated so the prospect knows what to expect? Was the prospect confirmed through a phone call and/or text message the day before or the day of the appointment? These steps will impact your show percentage.
- What is your conversion rate? Out of the number of people that show, how many of them purchase your services? 20% will convert if you have some kind of sales process, 30% will convert if you master your sales process, and 40% will convert if you have developed a unique selling proposition (USP). A USP communicates to prospects that the value of your service outweighs its cost.
- How do you break down your client acquisition cost? Your client acquisition cost is calculated by determining how much you have to spend driving prospects to your sales funnel in order to gain 1 client. Here’s an example: If you spend $1000 in paid traffic and gain 2 clients, then your client acquisition cost is $500 (for each client). Obviously, a $500 client acquisition cost is not ideal. This is why it is critical to know how to cut costs by maximizing the items we just discussed above. Once you acquire a client, putting them on electronic funds transfer (EFT) will increase their longevity or lifetime value. At the end of the day, for every $1 you put in, you can make $2, $3, and even $4 in return.
The intention of these KPIs is to help you determine where you should focus, which will allow you to go from taking a gamble to taking a calculated risk. And remember — you may be just one tweak away from striking gold!
P.S. If you’re an online or aspiring online Fit Pro, learn how to add at least 5-10 new clients every month without guesswork or wasting time.
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