Hey my fellow metric driven marketers,
After posting my 2017 Webinar Funnel ROI Calculator yesterday, I’ve had a lot of people ask me for tips on how to increase the ROI of their webinar funnels from Facebook ads…
So I condensed my insights into ‘7 Lessons From 7 Webinar Funnels In One Year’…
Just like I did a few months ago when I shared ‘7 Lessons From 7 Free Plus Shipping Funnels In One Year’.
In case you missed it, here’s a link to yesterday’s blog post about my 2017 Webinar Funnel ROI Calculator:
Here’s a link to my blog post from a while ago about my ‘7 Lessons From 7 Free Plus Shipping Funnels In One Year’:
And here’s my 7 Lessons From 7 Webinar Funnels In One Year:
Lesson 1: KNOW YOUR NUMBERS
On top of what I mentioned in my post yesterday, here’s some things you need to be aware of when it comes to webinar funnel metrics:
ROI is the goal.
Cheap leads is NOT the goal.
About a year ago I took on a client who had generated over 25,000 webinar registrants from Facebook ads for less than $3 per lead…
Their #1 goal was to have a CPL (Cost Per Lead) of less than $3…
But they weren’t tracking CPA (Cost Per Acquisition of a new customer)…
Until the Metric Driven Marketer hit the scene, lol.
When we set-up full funnel tracking, we quickly noticed that the majority of SALES were coming from the ad sets that had a CPL greater than $3 (often 2X-3X that)…
And very few sales were coming from the ad sets that had a CPL of less than $3.
Without knowing it, after spending over $70,000 on ads, they were continuously turning off some of their most profitable ad sets (that were generating a 2X-5X return) and scaling their least profitable ad sets (that were in some cases generating ZERO sales).
So what can we learn from this?
You are NOT in the business of generating cheap leads.
You are in the business of profitably acquiring customers and serving those customers at the highest level.
Lesson 2: Use long-form story-based FB ads to ‘pre-frame’ the click
Before I explain, here’s 2 examples of what I’m talking about:
Why long-form story-based ads?
You know that ‘See more’ link Facebook has that you need to click to read an entire post?
You probably clicked on it to read this entire post…
Well, any time someone clicks on it, Facebook considers it a ‘click’, (not to be confused with a ‘link click’).
In fact, any time someone clicks on your ad, whether it be to:
1. Like your ad
2. Share your ad
3. Comment on your ad
4. Check out your page
5. Click ‘See more’ or
6. Click on your link to your landing page…
Facebook considers it a ‘click’.
For example, if your ad has:
130 clicks to your page
1,500 ‘See more’ clicks
1,000 link clicks…
Your CTR (all) is 3% (because 300+50+20+130+1,500+1,000 / 100,000 equals 0.03)…
And your CTR (link) is 1% (because 1,000 / 100,000 equals 0.01).
From my experience, having a CTR (all) of 3%+ usually gets you 8-10 relevance scores.
A CTR (all) lower than 3% will typically result in relevance scores of 7 or lower…
I used to really struggle to get a 3% CTR (all) when I primarily ran short-form ads and I could never get relevance scores above 5…
But now I consistently get a CTR (all) at scale of 3%-7%+ with long-form ads and I rarely get relevance scores below 8.
In case you’re wondering, here’s why high relevance scores matter:
1. You get better quality traffic (Heard this straight from a dude who manages over $1mil per month FB ad spend, who I paid $1K for an hour consult and I’ve found it to be true from my experience)
2. Your CPM (Cost Per 1,000 Impressions) decreases and fluctuates less – This decreases and stabilizes your CPC (Cost Per Click), CPL (Cost Per Lead) and CPA.
Think about it, Facebook’s #1 priority is user experience…
If you create a great user experience (by telling stories and adding value ON FACEBOOK), you’ll be rewarded.
Given that you’ll typically get more social proof (likes, comments, shares) with long-form ads, another quick tip is to ‘stack the social proof’ on the same ad and run that same ad to multiple audiences rather than dispersing social proof across 10’s or 100’s of ads…
Often I launch an ad to warm audiences (email list, retargeting list, fans etc) and then take that same ad to cold traffic once it has 100+ likes and a bunch of shares…
And it works great!
Some people are big advocates of ‘pixeling’ people with content (eg. Blog posts) then retargeting them to their webinar registration page but here’s why I prefer a long-form ad direct to a webinar registration page:
1. You can leverage Facebook’s ‘Conversions’ objective instead of its ‘Website Clicks’ objective on the front-end of your funnel and get better quality traffic into your funnel
2. People who click on an ad about a webinar are more qualified to register and attend a webinar (and buy off a webinar) than people who click on an ad about a blog post – If you sell via webinars, I don’t suggest making people jump through hoops to get on your webinar
3. Your retargeting ad spend is put to better use if your retargeting list is made up of better quality traffic (people more likely to register, attend and buy)
4. It’s much easier to track your key metrics and the audiences/ads that generate sales/ROI with a more direct response approach
5. It’s much easier to implement a direct response funnel
6. If you have solid webinar funnel metrics from cold Facebook ad traffic, you should do pretty well with affiliate traffic too (Your affiliates can use your long-form ad copy in the first email they send to their list promoting your webinar)
Although I’m not a massive fan of ‘pixeling’ people with content (eg. Blog posts) then retargeting them to your webinar registration page, I am a fan of testing the following funnel structure against the direct to webinar approach:
Ad > Squeeze page (giving away a lead magnet) > Webinar registration page
I’m a fan of this funnel structure because you still get the benefit of most of the 6 points I mentioned above and your Cost Per Registrant and CPA are often lower with this funnel structure…
So this is definitely worth testing…
Just make sure you’re tracking your metrics and let them dictate your decisions.
Lesson 3: Run your webinars JIT (Just In Time) or TOTH (Top Of The Hour)
The average marketer running live webinars will get attendance rates around 20%-25%.
If your webinar runs every 15 minutes (eg. If it’s 10.06am, the next webinar is 10.15am) or every hour (eg. If it’s 10.06am, the next webinar is 11am), you can expect attendance rates around 50%-80%.
Russell says that if you can convert 10% of live webinar attendees into a $1K offer, you have a million dollar per year webinar.
If you’re getting a 20%-25% attendance rate, that’s a ‘lead to sale’ conversion rate of 2%-2.5%.
If you’re getting a 50%-80% attendance rate with automated webinars, to get a ‘lead to sale’ conversion rate of 2%-2.5%, you need to convert 2.5%-5% of attendees into a $1K offer.
Lesson 4: Ensure your webinar funnel has the following 4 characteristics
1. Target market (that’s broad enough for you to scale)
2. Big idea (that’s intellectually interesting and emotionally compelling)
3. Unique mechanism (for people to ‘hang’ their hopes on)
4. Scalable messaging (ad, funnel pages, webinar, emails)
Lesson 5: Optimize your post webinar follow-up across different mediums
Segment those who clicked on your ad into ‘The 5 Webinar Funnel Buckets’:
1. Clicked but did not register – Send back to your webinar registration page or your replay page with a (Wistia) video of your webinar presentation that requires their email address (opt-in) to watch
2. Registered but did not attend – Send to your replay page with a (Wistia) video, opt-in required
3. Attended but did not see pitch – Send to your replay page with a (Wistia) video, opt-in required AND your sales page
4. Saw pitch but did not buy – Send to your sales page
5. Bought – Have solid customer onboarding systems that decrease buyer’s remorse (eg. Video on order confirmation page reassuring customers that they made a great investment)
Follow-up across different mediums:
1. Email (Obviously)
2. Retargeting (Facebook, Google Display, Youtube)
3. Phone (especially people who abandon checkout – Use a 2 step order form – Collect name, email and phone # on step 1 and payment info on step 2)
Get people over the line with urgency and proof of your customers’ results:
1. Use Deadline funnel
2. Use video testimonials – Retarget people in bucket 1 and bucket 2 with video testimonials about your WEBINAR and retarget people in bucket 3 and bucket 4 with video testimonials about your product/service
Lesson 6: Scale with Facebook ads, data and insight
Each audience you target will produce an ROI that will fall into 1 of what I call ‘The 5 ROI Buckets’:
1. Positive ROI (Day 1) / Positive ROI (Funnel Lifetime)
2. Breakeven ROI (Day 1) / Positive ROI (Funnel Lifetime)
3. Negative ROI (Day 1) / Positive ROI (Funnel Lifetime)
4. Negative ROI (Day 1) / Breakeven ROI (Funnel Lifetime)
5. Negative ROI (Day 1) / Negative ROI (Funnel Lifetime)
In this case, when I say ‘Lifetime’, I mean the ROI of your webinar funnel (after post webinar follow-up, rebills from payment plans etc), NOT the lifetime of your leads and customers (after being on your list for 365+ days).
If your goal is to generate a 5X-10X return, you’ll struggle to find many (if any) audiences where you can generate those kinds of results at any decent level of scale.
Audiences that fall into buckets 1 and 2 will have a solid profit margin but there’ll be a limit to how many leads and customers you can acquire.
Audiences that fall into buckets 3 and 4 will NOT have much of a profit margin but will acquire you lots of leads and customers.
Audiences that fall into bucket 5 should be avoided unless you are an established business with knowledge of the LTV (Lifetime Value) of your leads and customers beyond the webinar funnel, after 90, 180 and 365+ days and you have a solid back-end to recoup your front-end losses.
My suggestion is to scale audiences that fall into bucket 1 and bucket 2 as much as possible first then go after audiences that fall into bucket 3 and bucket 4 to acquire as many leads and customers as possible without having cashflow problems.
Then launch more funnels and offers to your list over time to generate profit on the back-end.
Then when you have your front-end, back-end and numbers dialled in, you can go after audiences that fall into bucket 5 – lose money on your front-end funnel and recoup your losses on the back-end.
If you’re ACV is $700 and your LTV is $1,000, how do you determine what bucket each audience falls into without spending $700-$1,000 on each audience?
Determine your Earnings Per Lead and make decisions based on that…
If your webinar close rate is 2.5% and your attendance rate is 60%…
For every 100 leads (registrants)…
60 will attend…
1.5 will buy…
You’ll make $1,050 (on Day 1) and $1,500 (after the Funnel Lifetime)…
That’s $10.50 Earnings Per Lead (Day 1) and $15 Earnings Per Lead (Lifetime)…
Audiences that fall into bucket 1 will have a CPL of <$10.50
Audiences that fall into bucket 2 will have a CPL of $10.50
Audiences that fall into bucket 3 will have a CPL of $10.50-$15
Audiences that fall into bucket 4 will have a CPL of $15
I typically spend 2X my target CPL on each audience before making any changes.
So going with this example, if I launched a campaign and was going after audiences that fall into bucket 1 and bucket 2, I would spend $21 per audience…
If an audience generated 0-1 leads, I would turn it off.
If an audience generated 2 leads, I would keep it running.
If an audience generated 3+ leads, I would scale it, slowly.
If an audience has a high CPL but has a low CPA, keep it running and keep an eye on it.
Similarly, if an audience has a low CPL but has a high CPA, turn it off.
Use audience insights to find interest audiences to test.
Test 5 different lookalike audiences (1%, 1%-2%, 2%-3%, 3%-4%, 4%-5%) of the following custom audiences:
1. Customer list
2. Email list
3. Website visitors
5. People who engaged with your page/posts (Eg. Watched % of video, liked, commented, shared)
Make sure there’s at least 1,000 people in each custom audience that you create lookalike audiences from or else Facebook won’t have enough data to create solid audiences for you.
Always monitor the CPL and CPA of different genders, age ranges and placements per audience because some audiences might have a really high CPL and CPA but have one gender (or age range or placement) doing well and another gender (or age range or placement) doing terribly in which case you can just narrow the audience to target the one gender (or age range or placement) doing well.
Often narrowing an audience to a certain gender (or age range or placement) can increase your CPM, reset FB’s optimization and lead to worse results so use your best judgement in these situations.
Lesson 7: Use Russell’s Perfect Webinar script
Like, really well.
I did a ‘Perfect Webinar’ style presentation in Tokyo earlier this year to a few hundred business owners that don’t speak English (was translated live) and I closed $25K from the stage…
People don’t even need to speak the same language as you and they’re buy…
That’s how well it works, lol.
Hope this has been valuable.
If you have any questions, feel free to private message me on FAcebook (Ricky Baldasso) 😉