Sales Friction = Death (Get Out of Your Customers’ Way)

[00:00:11] Colby: Hey, everybody. It's Colby from Soul Aid here to answer some of your questions. First one that I have in front of me. Without paying for another tool, and given that GA4 standard reports and Google Ads use different attribution models, which platforms or report would give a simple enough ROI to be understood by all stakeholders?

[00:00:28] Colby: for this, I definitely believe that it should be easy and your report should be digestible and shouldn't be so complex that people can't read them and understand. And I think making things as simplistic as possible is good, and it also is a good measure of you showing that you know what you're doing.

[00:00:46] Colby: And one of the good ways that we can do this, and the most simple ways, is through media efficiency ratio. you've probably been hearing John talk about it, and some other people from our team. Media efficiency ratio is the total cost of ads, divided by the total revenue, or cash in divided by cash out.

[00:01:02] Colby: what this tells us is the total amount of ads we have in the market. What impact does that have on our revenue? And you might hear that there's a lot of running around upstairs. It's just my toddler, my roof isn't going to collapse. But, I want to back up just a tiny bit here. And point out that attribution is probably going to get worse.

[00:01:21] Colby: at the iOS updates, people are opting out of tracking, that cookies are going away. that everyone's not playing together nicely. I don't think we're going to have the wild west days, the glory days, where we have beautiful data, and we're going to be able to beautifully track the, 7 to 15 steps a user takes before they make a 20 purchase.

[00:01:42] Colby: The most efficient way we can do this is knowing that we're putting in a total amount of dollars towards advertising, and we're getting some out. And through all the changes we're making, we want to see a positive relationship between these. I think we should quickly talk about how you would calculate that here.

[00:01:59] Colby: And like I was saying, total cost of ads divided by total revenue here. You would go in let's say you grab last seven days of data, you grab the last seven days of Google and Facebook you don't need anything fancy here, just a spreadsheet. Go into your ad platforms, grab your total cost, and just put them right in there.

[00:02:16] Colby: You could do it by campaign basis, but your stakeholders are probably going to want something nice and simple for them to understand, so do it from a very high level perspective first. And then once you do that, just make sure you use the same time frame. You can go to Shopify or WooCommerce, whatever you've got, and look at the total amount of revenue that you generated.

[00:02:35] Colby: Put that together in the formula. If you are getting a 1. 09x, your stakeholders are probably pretty unhappy, and you are too, but that's okay. To do better, And measure this relationship and start to make action, take action. I would say, make changes individually in each platform, and when you're doing that, keep things consistent in the other.

[00:02:55] Colby: If you're doing things sporadically in both, and you see your MER going up or down, you're not going to know why. When you make some changes in Google, Stop let it be consistent see what the impact of that is and don't be doing anything in Facebook Give it some time maybe two to three weeks and then do the same for Facebook And then when you start seeing things work, you'll then be able to know.

[00:03:16] Colby: Oh, yes. This has a positive relationship on my mirror. So continue to do those sorts of things out there in the marketing world Keep your stick on the ice Thanks.