How To Setup Your Metrics For Your Facebook Ads?

and how to know your metrics when it comes to running Facebook ads so that you make sure that your campaigns are really, really successful. What's going on everybody? Hernan Vazquez here and I hope that everyone is doing really, really well. Thank you for joining me today. Today we're going to be talking a little bit about metrics and why I think metrics are really important, how you set up, how you set, how you decide on your metrics when it comes to your Facebook ads. And the reason why I'm telling you guys this is because Uh, recently we just onboarded a new agency client. ScaleDriven.com, as you might or might not know, is a digital marketing agency, and we help clients with their Facebook advertising, Google Ads, their YouTube ads, and all that good stuff, and sometimes their funnels as well. And, uh, and what happened is that this client came highly recommended through a friend, and they wanted to scale their advertising. They wanted to have more appointments booked. They are a, um, they are a local business in New York City, and they wanted to increase the amount of book appointments that they had. Now the problem is that they really didn't know how much they were willing to pay per appointment. They have several services, they have several divisions or verticals if you would, and they've been running ads for a little bit, but most of their traffic, most of their appointments right now, they come from referrals, word of mouth, people just walking, you know, walking past the, the place and coming in, or just organic, you know, in general, like people finding them on Google and all that good stuff. They have a lot of brand equity, and we're going to be making sure that we use that for our campaigns. So when we hop on the first call, the first onboarding session, the reality is that they didn't really know, uh, what their KPIs were. They didn't know. They honestly didn't know what they were willing to pay per booked appointment. So one of the things that's on our court, on our end, ScaleDriven is we help our clients develop their KPIs and their metrics, especially when it comes to Facebook ads. So one of the things that we do, one of the ways that we do that is by basically running campaigns. We basically— we cannot know, we do not know what you're going to pay per appointment, what you're going to pay per lead, what you're going to pay per purchase initially, like out of the bat. If somebody's coming in and telling you, oh yeah, you're going to be paying $30 per appointment, we really don't know because there's a lot of stuff that we don't know. We don't know how much it's going to cost us to run ads on your area. We don't know what— how effective you are when you're on the phone with your clients. So there's a lot of question marks that we need to solve and figure it out. So what we do at ScaleDriven is we run ads for a client, let's say, for the first 30 to 45 days, and then we decide, hey, are we hitting our KPIs or not? The reason behind it is because once you run ads for a little bit, the market will tell you how much you're going to pay per click. The market will tell you how much you're going to pay per lead. The market will tell you how much you're going to pay per appointment. I wish that I would pay, let's say, $10 per appointment, but if you're fighting in a— if you're advertising in a really high competitive area, uh, then the, the, the math might not work for you, right? So what you want to understand is that sometimes we set out these KPIs, sometimes we set up these metrics. We say, okay, we want to pay at most $100 per application, or $50 per booked appointment, we want to pay this, we want to pay that. The reality is that the market will decide how much you're going to pay based on your area, based on your niche, based on how effective your ads are, and all of that. So what you need to think about is this. When you're buying ads on Facebook, when you're running advertising on Facebook or Google or YouTube, you're basically buying data. You're basically telling Facebook, hey Facebook, here's $5,000, $3,000, $150, it doesn't matter. Here's some money, give me some data. Tell me exactly how much am I going to be paying per click, how much am I going to be paying per lead, how much I'm going to be paying per booked call, per webinar lead, per booked appointment, per call, per whatever, right? So once you understand that, then you work backwards. What does that mean is that let's say that you're selling like this new client, you have a bunch of services that people are coming through and whatnot. What you need to understand is how much is a customer worth to you, let's say for service A. Let's say that for each, uh, customer that comes your way, or patient or client that comes your way for this service, that client is worth to you $500, okay, over the course of let's say 30 to 60 days. So they're worth to you $500. If you want to have a 2-to-1 ROI on the campaign, that means that for every dollar that you put in, uh, you take $2 out of the campaign, which would be a really healthy campaign. Then what you want to do is to pay at most $250 per client, right, per walk-in. Ideally, you will be paying less, but at most initially you will be paying $250. Why? Because that client is worth to you $500 and you're paying $250. Now let's say that 1 out of 10 appointments tend to show up, okay? You can work on these numbers, you can add more follow-up, you can send SMS, you can train your team so that they are more effective on the phone and you get more people to show up to the appointments. But let's say that for now 1 out in 10 appointments they will show up. What happens is that the most that you can pay is $25 per appointment, right? $25 per appointment booked, because out of 10, 1 will show up. That is $250 per client. That means that you're getting a 2-to-1 ROI on the campaign, which again would be a good initial test. Now let's say that 1 out in 10 people that visit your website will end up booking an appointment. That means that you can pay up to $2.50 per click. Why? $2.50 per click times 10, that is $25. You got 1 booked appointment, 1 out of 10 will show up, that's $250, that is $500 on the backend. So that means that you're making $2 for every dollar that you put in. So once you understand data, once you understand how much is a customer worth to you, you work backwards. But initially, you might not have these metrics. You might not know how much is a customer worth to you. Or ideally, you know how much a customer is worth to you, but you do not know how much you're going to pay per booked call. You do not know how much you're going to pay per lead. do not know how much you're going to pay per customer. And here's another thing to consider. We just onboarded a new client as well. They are big in Australia, they have a great business, they're working hard in Australia, and they want to launch in the US. And they know their KPIs for the Australian market, but they don't necessarily know their KPIs for the US market. So one of our functions, one of our goals as an agency, one of our duties as our partners is, as partners of our clients, is to help them discover how much they're gonna pay per booked call. I'm pretty sure they're gonna be paying more per booked call, per appointment, per appointment set in the States because there's usually more competition than in Australia. Now, that means that A, they might keep the prices the same in Australia and the States and make a little bit less money in the States, but they will have a lot more volume, or B, they might just charge more money to the people living in the States. Could be another option. So that makes that—that means that for every advertising is a tool for you to understand the metrics in your funnel. And when people come to us and they say, "How much am I going to pay per lead?" The answer to that is, "I don't know." Again, I don't know how well your funnel converts. I don't know what what's been happening. I don't know what type of email sequences you have because if you think about it, you can move a lot of levers. Right? If you think about it, you can get more people to show up by having more consistent follow-up. You can get people to buy more from you by having better trained sales teams, right? Or by adding more email sequences on the backend. So there are some levers that you can pull. Now, what you— what is really hard to pull, what is really hard to do, which is what most advertisers and entrepreneurs are trying to do, is to try to lower the cost per click, try to lower their CPMs, try to lower their cost per lead. That's the hardest thing to do because if you think about it, When you're trying to increase the effectivity on your funnel, increase the show-up rate, increase the walk-in rate and all of that, you're competing against yourself. You're competing about your current machine versus a future machine. You're competing against you from today versus you from tomorrow, okay? How effective you are on the phone, how effective your email sequences are versus if you turn around and if you try to lower your cost per click, lower your cost per lead, lower your CPMs, your cost to advertise, you're competing against millions of other advertisers, right? And sometimes we don't have a say unless something happens like a recession or a pandemic or whatever. Then at that point, we, you know, we might see a decrease in cost per acquisition, but that's not something that we can control. Now, what you can control are all of those things, all of those metrics in your funnel. So again, if you do not know what your metrics are, just think about 2-to-1 ROI. It's usually a good, easy healthy starting point for your campaigns. If you're putting $1 in, you're taking $2 out, and then you work backwards to understand your metrics. Facebook can help you with that, and we can help you with that. If you want to learn more about how we can work together, first what I would recommend is you go to scaledriven.com/class. You register for a 35-minute presentation. It's really easy, really simple. On that presentation, we'll, we'll show you the 3 main pitfalls that prevent people from being successful with Facebook ads. One of them is not knowing their metrics and not knowing their strategy. There's 2 more that you need to know. Go there, and then at the end of the presentation, there's an opportunity for you to apply to work with us if that's something that you want to do. So I hope that is helpful. If you have any questions, feel free to reach out, drop them in the comments below, reach out to us, and go to scaledriven.com/class, register for that free class. It's completely free, it's a lot of value. I hope that you guys have an amazing rest of your day. Bye-bye.