Using Facebook ads to drive leads as a business is a tremendously popular way of monetizing the platform. I was lucky enough to be around during the alpha of the LeadGen ad unit. Let’s cover the three most important things you need to know when trying to run these ads.
Lead generation ads versus a lead generation landing page
The lead generation ad on Facebook has become tremendously popular. It’s can be incredibly powerful because it allows somebody to fill out the lead form without having to leave Facebook, in a matter of seconds, by using the information Facebook already has on them.
Our other option is to run ads to a landing page that has a lead form, in a conversion campaign. The advantage of the lead form on the landing page is that we can heavily customize what information are asking for. Also, driving users to our website presents the opportunities to continue that customer journey in many other ways.
Remember that the majority of Facebook users in first world countries have never filled out a lead form on a lead generation Facebook ad unit. The advantage that this ad unit had when it was introduced nearly a decade ago, was the ability to auto fill all of the users information. Today, the vast majority of our devices and browsers do this for us regardless of where the forms exist on any webpage.
The unfair advantage that the lead generation ad on Facebook, has been eliminated by the advancements of browser and device technology. Because most users have never engaged with a lead generation ad unit, we are affectively excluding the majority of our available market when we exclusively use them.
Qualification and pixel events
When we are using the sales funnel of a lead, we have to understand ultimately how good each lead is from each ad that we’re running. When we use dynamic kreatives we need to understand what concept drives a higher quality lead into our Funnel. We should not be relying purely on the cost of the lead or the conversion rate of all leads to be any valuable source of truth.
Ideally, we should be able to understand only by the information input into the lead force, whether the lead is good, bad or excellent. We can also pass back to Facebook Pixel events from custom conversion event built off of the lead event, to identifies this qualification of the lead once it’s submitted. The quality of the lead has a direct impact on the monetary value of that lead, as well as the prioritization of that lead by our business operations team.
We can even pass back to Facebook a completed sale, or the onboarding of a client. We are able to trace that back to which concept from or dynamic Creatives, or which ad was responsible for the start of that customer journey after completing the lead funnel. This is the MOST EFFECTIVE way to determine which Ads do the best. Cost Per Lead is only valuable if your business is built on selling leads by volume. Even then, the quality matters A LOT!
Value, volume, and cost
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 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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