Show Notes

CTR, Trip Wire, CPC, Core Offer… Open Rate 😵

Have you ever spoken to a marketer and thought they were speaking in a different language? Maybe it sounded Greek to you.

In today’s episode I’m going to dive into those marketing terminologies that no-one other than marketers understand.

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Hey there. Thanks for listening and welcome to the marketing matchmaker podcast. If you're looking to grow your business, increase your revenue and scale your impact all while staying true to who you are and the people you serve. This is the show for you. I'm Jennifer Tamborski, digital marketing strategists, fractional CMO, and founder of Virtual Marketing Experts. My team and I work with six and seven figure coaches, consultants, and online entrepreneurs who are tired of playing the guru game of one size fits all marketing. They're ready to create a business and marketing strategy that actually builds relationships with their ideal clients creates massive shifts in their business and rapidly increases their revenue. As your marketing matchmaker, I'm going to help you find the perfect marketing match for you. This show will teach you how to reach your ideal client, connect with your audience, build that perfect relationship and generate more revenue. All through a process I like to call dating your ideal client. Now let's go have some fun!

(01:14): Hey there. Welcome back to the marketing matchmaker. I have a question for you. Have you ever spoken to a marketer and thought they were speaking in a different language?

(01:23): Maybe it sounded like Greek to you.

(01:26): I'm going to tell you right now. I often have this question come up a lot because as I'm doing presentations to like my networking group, they'll often ask me what that term meant, whatever it was that I said. And I get to explain to them what those terms mean. So I thought in today's episode, I dive into those marketing terminologies that, well, no one uses or understands if they're not a marketer. And I wanted to educate you on these terms so that if you decide to hire a marketer, you are aware of what they're talking about. And more importantly, why these terms are important to you. So we're going to start with one of my favorites.

(02:11): We'll start with Facebook ads. Paid traffic is one of my favorite things to do in my business. We generally build sales funnels and we run paid traffic. Usually Facebook ads, sometimes LinkedIn ads, sometimes YouTube ads all depends on the client. So I'll start with Facebook ads. So Facebook ads and Instagram ads can all be used in the same thing.

(02:37): If you didn't know, Facebook actually owns Instagram. So we run these platforms in the same way. So we'll start with ad spend. So ad spend is really the amount of money that you pay the paid advertising platform, whether it's Facebook or Google or LinkedIn or Twitter or Instagram, whatever your paid platform is, your ad spend is what you're going to pay directly to them. And your ad spend does not include things like your graphic design and your copywriting and the services that you pay a Facebook ads manager to do.

(03:18): So when you're talking to a digital marketing company, make sure that you're really clear about what your ad spend needs to be. They will know and give you a general range of what they would suggest you use for your ad spend. And if you are working with a good digital marketing company, you're going to want to trust them.

(03:44): When they say you need to spend X amount on ads in order to get the results you're looking for. So just be clear that you understand that your ad spend and the amount that you pay that digital marketing company are 99% of the time, separate things.

(04:03): The next term I wanted to hit on is called a click through rate or the CTR. So this is really the percentage of people who click on your ad and have out of the, all of those that have seen it.

(04:18): So it's the percentage of people who clicked through from your ad to your website. The click-through rate is one of the most important metrics, because it helps you understand if your ad is working. It tells you what your clients or your audience is doing. So if your click through rate is low, you know that your ads aren't working. Either you're targeting the wrong audience or the language you're speaking, isn't hitting them, or the image you're using isn't connecting with them.

(04:58): It's really one of the first things a Facebook ad specialist look at is the click-through rate to know whether the ads are working. The next turn is a CPM or cost per impression. Don't ask me why they do CPM instead of CPI. I don't know. But anyway, your cost per impression is one of those metrics aimed at demonstrating the effectiveness of your online marketing.

(05:25): So it's the lower the CPM rate, and these are in dollars, the more effective and optimized the marketing campaign is. Now I will tell you, your CPM can sometimes be controllable based on the audience that you're targeting. And other times like around Black Friday, I'm going to tell you right now, your CPM goes through the roof and you have no control over it.

(05:47): Cost per click. This is the amount of money you pay for each click. So each time a person clicks on your ad when you're running a pay per click ad. So whether it's through Google or Facebook, this is the cost for them to click on it. And it really is, well it's influenced by factors like your maximum bid and your quality score and even your CPM, or the analytics going on in Facebook. Cost per click is one of the second things that we look at to make sure that your ads are working. So if you have, for instance, a high click through rate and a cost per click, that's high as well. There's probably something going on there. Usually, the higher your click through rate, it's in percentages, and that is the lower the cost of your clicks. Um, So those are two metrics that kind of go hand in hand.

(06:46): R O H S, which stands for return on ad, spend some marketers, call it a “Roas” it is the return on your ad spend. So if, you know, for instance, I had a client recently that had a 600% R O H S a Roas. They had 600% the amount they spent on their ads to their revenue. So in essence, they spent $4,000 and they made $50,000 off of the ad spend. That's a really amazing return on your ad spend. And it's what you're going for. I'm not going to say that you're going to make 600% of your ad spend in your revenue, but you should be making at least two to three times your ad spend in your revenue.

(07:39): So for every dollar that you put in, you should, at some point be getting back two to $3 out of that. Now I'm going to be honest. It takes a little while when you're first starting ads to hit those numbers. And sometimes it takes a long while to hit those three, four, 500% numbers. It is possible though. So when your talking to your Facebook ads specialists, just make sure that you understand what your return on your ad spend should be. They should be providing you with a report that tells you that.

(08:15): So what is your conversion rate? This is the percentage of people that have converted from your landing page. So basically what it means is they've clicked on your ad. They've landed on your page, and then they've done the next thing. Sometimes that can be purchases and sometimes it's a lead. And so a conversion can also mean that they've opted into your email list. So your conversion rate is the percentage of people that landed on the page divided by the number of people that actually did the next step.

(08:55): We are going to jump into the next area of our specializations, which is sales funnels. So I also love sales funnels. And for those of you, if you've not heard me before, walk you through what a sales funnel is, essentially, it's your customer journey. It's the steps your audience go through to help them go from introduction, through commitment, to a purchase. That is what a sales funnel is, where you really use them as part of the process to scale your business. It really does help for your audience to be able to take an automated process through your, your funnel.

(09:42):Then we come to average cart value. So this is the average dollar amount of your customers. And this really applies more to e-commerce than it does to the coaching industry. Although it could also apply to an online course creator or a coach that's created a course. It's the amount of money that your customer spends when they go through your funnel. So it's on an average for your buyers.

(10:12): Copy. This is always really confusing to people, but copy is literally the words that are on your sales page, on your funnel, on your website, on your email, on any piece of your marketing material copy or sales copy includes not only the headlines, but also the text you use in your marketing to educate your audience and connect with them, which will drive them through your funnel.

(10:41): Core offer. This is your main offer. This is the one thing that you do better than anyone else that you sell. It is the reason for the funnel. They go through a whole funnel to get to this main thing.

(10:57): Sometimes there are things like a down sell, which is a product that if they get to your core offer, they don't necessarily want the core offer, you offer them something that's a lower price that maybe it could be a payment plan. Most likely it's going to be something else that they can purchase that doesn't necessarily need your time.

(11:22): Your landing page, this my friends is literally any page on your website or funnel builder. I don't care if you're using a WordPress platform or you're using lead pages or click funnels or any other platform, all of them have landing pages. It is simply the web page that people land on in order to take that next step of your funnel.

(11:48): A lead a lead is a potential customer. That's it? It's somebody who's opted in for your lead magnet. So that free thing or that low-cost thing that will take them to the next step of your funnel.

(12:04): Lifetime value, or it can also be called LTV. So this is really an estimated amount of the total profits you'll make from one customer during the entire lifetime of your relationship. And why is this important? This is really important because often times, I've said this before, it is easier to sell to somebody who's already bought from you than to bring in cold and new purchases. So creating that next step, that Ascension in your business will help you to increase the lifetime value of your clients.

(12:45): Your open rate. This is the percentage of people who are on your email list already, who opened the emails that go out, that you've sent as an email campaign. Your open rate really indicates the health of your list. You could have a hundred million people on your list. And if your open rate is like 1%, that doesn't mean anything. Your open rate really tells you what the health of your list is. And the higher your open rate is the healthier your list. The more engaged, the more likely they are to buy from you.

(13:20): Your opt in, again, this is simply the act of giving you their contact information, whether it's their name and address or name and email address, whatever that contact is, that contact information is opting into your lead magnet just means giving you their information.

(13:41): Your opt-in rate. This is the percentage of people who land on your page versus the number of people who actually opt in. So it's the number of opt-ins divided by the number of people that land on your page gives you your opt-in rate, it's by a percentage. So for instance, a good opt-in rate is generally around 10 to 20%. The higher you are the better you you're doing. If you're getting 1 to 3%, opt-in on your page, you may want to look at what's going on on your page.

(14:19): Show up rate. This is really around webinars are a webinar funnel. And it's the percentage of people that show up versus the ones that opted in. Often times on webinars, or any real trainings, people will give you their information and they'll opt in, but they may not show up. So your show up rate is how many people that actually showed up divided by the number of people that registered.

(14:48): A SLO or self-liquidating offer. So this is an introductory offer that you can kind of substitute for that free lead magnet. It's generally something under $50 that is a no brainer for your ideal clients to purchase. The whole point of a slow a self-liquidating offer, a micro offer, is to cover the costs of your paid ads or your marketing efforts. It really allows you to bring in leads and potentially get paid for them, or if not paid for them at least break even when it comes to them.

(15:32): Tripwire. So this can also be part of that self-liquidating offer. Sometimes you bring in clients, or leads into a free offer, and then you can sell them that micro offer, that small thing that they're going to want to purchase for minimal amount of money. It is a step along the way to the core offer. So you need to make sure that it makes sense in the flow. That your trip wire is really going to take them to the next step, to take them into your offer.

(16:13): I had this client, this conversation with a client in the past, she has a great lead magnet, and she was getting people that were trying to sign up that weren't quite ready for her services. So the question became, what was that small thing that could get them ready to take the next step?

(16:32): An upsell that is a product that is often offered in e-commerce products, or sometimes courses. It can be a VIP offer if you're having a course, maybe they have are part of the upsell is being part of a mastermind or some group, something like that. It's just something that you can sell that next stage. Maybe your course is $199 and to be in the VIP group, it's $499, whatever that is. It's, it's giving them an irresistible bonus that they get to pay for.

(17:13): Value Ladder really means a collection of products that increase in value and price. So when your clients are going through your customer journey, through your sales funnel, they generally start with free. They may move to a tripwire, which is a low cost product that moves into your core offer. That then moves into your next offer up whatever that Ascension is into your next thing. Maybe it's, you know, a group coaching to a mastermind or a course to group coaching, to mastermind, whatever that looks like for you. Your value ladder is really what helps lead to the lifetime value of your customers.

(18:02): The last thing I wanted to touch base on in the sales funnel section is your video sales letter. And that's really well. I mean, it's exactly what it says. It is. It's a video sales letter. It's a video that you show to prospective buyers that explains why they should buy your product, service, or solution.

(18:20): So the last set of terms I wanted to go through are just some general marketing terms. Things like client acquisition cost, or customer acquisition costs. This is the average amount of money that you spend on your marketing to acquire a new customer in any given period of time. So if you're spending a thousand dollars in paid ads over one month to acquire 10 customers from those ads in that same amount of time, your customer acquisition cost is a hundred dollars for that month.

(18:56): So it's really just dividing the amount you're spending by the number of customers you're getting.

(19:03): Scarcity. This, my friends is, if used, right, it is a marketing tactic that really helps push your audience in the direction to purchase from you. And it's something that you want to use in, in alignment with your integrity, right? You never want to use it to lie to people. Your scarcity can really be things like you only have 30 seats available in your program, or your sale is going to end on Friday. Or if you're doing a launch, maybe your cart closes in two days. You want to make sure that it grabs their attention and it makes them want to make that purchase now to avoid waiting till later, to purchase something.

(19:59): Sometimes that scarcity can also be about their mindset and really explaining to them how, if they don't do it now, their transformation isn't going to happen tomorrow. If that makes sense, right? Like, letting them know that by avoiding purchasing, whatever your thing is, they're going to be in the same place a week from tomorrow or a month or a year or whatever, as they are today. And most of the time we're wanting to make a change, which is why we reach out to coaches and consultants.

(20:36): The last part also goes along with scarcity, it's called urgency, which is really about time bound. It just makes the audience understand that they have a limited amount of time to do X, Y, and Z. This really encourages them to buy sooner rather than wait to purchase to later.

(20:56): So that my friends was a lot of terms and there are a million more out there. So I'm going to stop here because I think I've given you enough to chew on for a little while. Oftentimes marketing can seem like we're speaking Greek, but the reality is, is that these terms are all ones that you're going to want to know in the long run so that you understand what your marketing company is doing or how you're effectively marketing or not marketing.

Thank You for listening to the Marketing Matchmaker podcast. If you enjoyed this episode, I would love to hear your feedback. Please head over to iTunes and leave a review so we can hear from you. And if you are a coach, consultant, or online course creator who are looking to grow your business, increase your income, and scale your impact connect with me at yourmarketingmatchmaker.com. I look forward to hearing from you.