It’s been a really interesting start to the year so far. Having talked to more than a dozen small business owners and entrepreneurs, I realised one thing that almost nobody was actually doing. Testing. When it comes to Digital Marketing there is only one sure fire way to improve, and it’s a simple model.

Do —> Test —> Do Again —> Test —> And Again —> Test Again —> AND REPEAT

It’s the only way we can make things better, improve what we already have and to ensure that we continue to drive an increase in engagement in our online presence. Once I heard a couple of people mention that they weren’t doing this I became curious, so I had to ask:

Why not?

It turns out most people don’t know how to analyse the data correctly. Or even worse, they are currently analysing it badly. So I thought I had to write this short post. It’s aimed at helping you understand what you are currently doing and make sure that you are reading the metrics correctly in order to continue developing and improving.

So, you create an advert. Well done! This advert according to Facebook is creating “conversions”. Do not think of this as a conversion! The advert is converting, but unless that conversion results in a direct sale it’s NOT ultimately a conversion. Think of it as Leads. This advert has created X number of leads.

Now, what’s really important is what you do next. You now have a lead, what are you going to do to turn them in to a Prospect.

I just want to clarify the difference between lead and prospect. A lead is some contact info for someone has shown an interest in you and your business. A prospect is someone that is actually considering buying your product.

How you turn a Lead into a Prospect really depends on you and your business. This can be done through a telephone call, a series of emails or an online call with an offer. There are loads of ways to do this, but the important thing is to DO THIS. Without converting someone into a prospect you have nothing but a Lead.

When you’re Prospect decides to buy, they become a Customer. This is when you can use the word CONVERSION! That has made your business some money. This is the important metric. What happens between creating your advert and now is just the process.

So again it’s:


This is the system that you want to and understand and be using. From my advert, I produced X number of Leads, which turned into Y number of Prospects, which ultimately resulted in Z no of Customers. What you currently know is how much you are paying per Lead (Facebook’s conversions), but really how much per Customer is what you want to know.

Advertising Spend / Z no of Customers = the real cost per conversion of your advertising

To then track your ROI is simple. Take the total Advertising Spend and divide it by the total Customer spend of those Z number of clients and simply multiply by 100 to get your ROI %age. So:

Advertising Spend / Total Z Customer Spend * 100 = ROI Percentage

Understanding this percentage is what is going to allow you to really know whether your adverts are working or not. If you aren’t looking at this then you are doomed to repeat the same mistakes time and time again. So look at these numbers, figure out where you are and remember to ABT – Always Be Testing to keep building your online advertising in the best way possible.

Any questions about this, hit me up on email [email protected] and I’ll be happy to talk you through it!

Chris Bruno
Chris Bruno

Chris, founder and CEO of Social INK, has devised and consulted on more digital marketing and social media marketing campaigns than you can shake a stick at. He’s also got a bit of a thing for online advertising and social media advertising.