When running campaigns to generate leads, either with the Facebook ad unit or driving users to your website, you need to know a few extremely valuable metrics. If we cannot understand these simple economic trends in our business, we will be unable to understand whether or not our efforts are effective until the end of the customer journey.
First, we need to understand how valuable every conversion is, our AOV. We can then move up the customer journey to understand the unit value of every stage.
Here is how we can move laterally through the customer journey
\*This is some example math for a lead to a call funnel
How much is a sales call worth?
\*AOV / Sales Calls to Get 1 Sale
How much is a book call worth?
\*Sales call value / booked call attendance rate
How much is a lead worth?
\*Total revenue / by total leads
We can also repeat this exercise by moving up the funnel that ends a completed lead form. Measuring the cost and conversion rate of a lead traced back to the ad unit that drove it, to begin with￼.
This is the exact same math and analysis that you can use when trying to pivot from a conversion of a sale to the acquisition of a customer… because all purchases are in some form a lead, and an opportunity to begin a customer relationship
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