Metrics are key when running digital advertising campaigns via paid traffic.
Especially if you are looking to see what your initial ROI (Return On Investment) will be.
Now there are four key metrics to look for when running paid traffic.
#1 - The Cost To Acquire A Consultation/Sales Call
This is very important to track and will be used to see how much it costs to acquire a paying client.
It's super satisfying to know that if your service costs $1,500 and you're spending $150 per call that you have to close a MINIMUM of 1 person out of 10 calls to break even? It definitely makes life much easier.
#2 - The Cost To Acquire A Client
This is the most important metric to track because this is what is going to be telling you if you're making a profit or not. Let's say for instance you know your cost per call which is: $150 per call and it takes 10 calls to close one. In that case your cost per client would be $1,500.
#3 - How Many Turn Into Referrals
Lastly, for this metric we're going to be tracking how many people that turned into paying clients will be referring you to new clients. So in this case let's say for instance you bring on 10 clients and 2 refer you to other people which equals an extra $30k a year. So that gives you even MORE room to spend more money on advertising!
Hopefully you found this article well.