Facebook KPIs You Should Monitor & Optimize
When it comes to using Facebook for your business there are specific performance indicators you want to focus on and continuously improve.
So, which 4 Facebook KPIs should you monitor and optimize? I’ll share each one with you then we’ll explore each of them in detail.
Top KPIs to Watch During Your Campaigns
- CPL – Cost Per Lead or Acquisition
- CPC – Cost Per Click
- CPM – Cost Per 1K Impressions
- RS – Relevance Score
Our ultimate goal is to decrease your Cost Per Lead or Acquisition (CPL/CPA). If you’re starting from scratch, without any data on how much each lead will cost, get started with two different ads and wait for results to come in.
Before you slap an ad together and hope for the best… create two a kick ass ads by following these steps first.
Once both ads receive at least 50 conversions, then you can split-test and make changes to your ads. Say you’re optimizing for page views or leads, wait until you obtain at least 50 page views or 50 leads before touching your campaign.
From that point, your next objective is to reduce both your CPL/A and CPC. You’ll do this by using the best ad from our first campaign and allowing it to compete with your third ad for your second split-test. Does the third ad give you better results? If so, #awesome! If not, fine, you’ve gained more insight into what your audience doesn’t want… also a win for you.
Keep testing until you strike gold. Ideally, depending on your niche, you’ll reach sub $2 CPC and in most cases sub $1.50 is an easy benchmark to reach.
In the financial services space, some days, leads cost well above $35 each while on others you’ll see them come in around $29. Therefore, be prepared for the price to acquire a new lead to fluctuate depending on day of the week and time of year.
Cost Per One Thousand Impressions
The cost per one thousand impressions works like this. Each time your ad is seen, whether it’s by a new person or the same person in two different locations, that counts as an impression.
As that number reaches 1,000 views, a dollar value is assigned. A great way to decrease the cost per 1K impressions is to write compelling copy and use engaging images / or a video that increases shares and clicks.
It’s easy to see that by improving the share-ability of your ad the organic reach raises and lowers the cost of your overall campaign. And how do you do this, you ask?
Increase Your Relevance Score
The Facebook ecosystem thrives on engagement. The happier Facebook’s users are with your content, the more Facebook rewards you with mas and better eyeballs for your business.
Facebook’s Relevance Score ranges from 1-10. Ten being the highest and best number your ads can receive.
The best way to lower the cost of your campaigns is to feed Facebook with awesome posts that are hyper relevant to the audience you want to attract.
Words to avoid:
When you run an ad with the intent of moving someone you don’t know into a paying client we want to trigger emotions within them that ignite action and move them with a sense of urgent purpose.
At the same time, we need to ensure we do so in a manner that doesn’t frighten or piss them off too much that they ding your ad as irrelevant. Too many dings and your ads are throttled… no bueno.
Keep the above words out of your ads with a positive bend and you’ll likely avoid receiving anything below a 5 relevance score. Of course you want to aim for a score of 7+.
The words you use are powerful. Our minds are constantly interpreting and looking out for the meaning and tone of things. When you combine an adjective with a noun the result is a sentiment-bearing phrase.
Will you choose to communicate positively or negatively with your combos? Think of phrases like crushing failure, bad game or awful performance what does your brain do when you read those phrases?
Did you revisit past experiences when you’ve heard or said these statements? If so, how did you feel?
Doing exercises like these while preparing your ads will help improve their performance.
Let’s review. Thus far you’ve learned…
How to improve your cost per lead ratio, cost per click, impressions and relevance score.
When you implement all of the above steps, your ads will start off exponentially better than had you not started off with this information.
If you’ve found this article helpful, look like a super-hero and, consider sharing it with a colleague whom you believe will benefit from it most.
Now go forth and kick butt!