Setting Goals and Expectations for Your Marketing Investment: Maximizing ROAS (Episode 2 of 5)

**SPEAKER_1** (0:04)
The Bliss Business Podcast, the show about empathy, connection and consciousness in business. Today's episode is brought to you by Zero Company, your paid search, social media, and programmatic ad experts.

**Tullio Siragusa** (0:17)
Welcome back to The Bliss Business Podcast. I'm Tullio Siragusa. I'm joined again by Joshua Prizer. We are talking about how to maximize your investment dollars for marketing. This is a series of five podcasts where we are providing some insights and some education and perhaps some new ideas for marketers and marketers alike on how to best utilize their dollars to get the best outcome for their marketing investment. In the last episode, episode one, we talked about how to turn marketing into investment, how to not treat it as a cost, the importance of being dynamic with how you invest. And we also introduced the concept of ROAS. Today, we're going to focus more on setting goals and expectations. How you can maximize ROAS, return on ad spend, which has direct correlation to return on investment, as we discussed in the last episode. Josh, welcome back. Looking forward to having this conversation with you.

**Joshua Prizer** (1:26)
I'm as well. This is probably my favorite topic in the entire world of marketing. Awesome.

**Tullio Siragusa** (1:33)
All right. Well, let's kick it right off and just jump right in, right? Now, question one, how do you set realistic goals for marketing investment? We talked about being dynamic with those investments in the last show, now having fixed budgets, but how do you set realistic goals in how you invest your marketing dollars?

**Joshua Prizer** (1:52)
Yeah. Well, first thing you have to do is outline your sales funnel. And a great tool for this is Google's Conversion Value Calculator. In fact, we can walk through an example here. Let's, if we can share that screen. There we go.

**Tullio Siragusa** (2:08)
Do it.

**Joshua Prizer** (2:09)
Yeah. So if you want to find this on your own, just do a Google search for Google Conversion Value Calculator, and you'll end up with this great tool here. And let's go through an example of a company that does window treatments, right? Blinds, shades, shutters, etc. So the first thing you do is you start by entering the conversion action you're tracking that creates a lead. And I'll make a note that it is important to do this process for every different type of lead. So example, for a window treatment company, one type of lead would be a phone call. Another type of lead might be a contact form on the website. Those are going to have very likely different results through this process. And we'll get into that, but let's just take one. So let's say our initial contact with a customer is a phone call. Okay, great. They call us. What happens next? Well, the next thing they do is they book an appointment for an in-home consult. All right, they book an appointment. So now, what percentage of people that call book an appointment? Now, we're starting to see how important it is to track and know your conversion rates at every step of the lead funnel. Now, a lot of times, we don't know these numbers when we're first starting because they haven't been tracked before. But now's the time. Now's the time. So we're going to start tracking this, track it over a one-month period, a three-month period, a six-month period, a year, and figure out what your numbers are here. But for now, we're going to put in best guesses. Let's say 90% of the people who ended up calling end up booking an appointment.
All right. What's the next step? The next step is actually having that appointment.
Again, this is another example of where it's important to think through every step, right? I've had people tell me, well, we book the phone call and then we have an appointment. But what they failed to think about is, oh, some people cancel those appointments and never reschedule, right? So you want to make sure, think there's every last detail, right?

**Tullio Siragusa** (4:28)
There's a conversion ratio for the call to the appointment, from the appointment to the actual in-person.

**Joshua Prizer** (4:34)
Exactly. So let's say one out of 20 cancels and we never talk to them again, right? Okay. So we have a 95% conversion rate from a book appointment to actually having the appointment. Are there any more stages? Yes. We can put on as many stages as we want. Sometimes I see two stages, sometimes I see seven, eight, nine, ten stages. But most of the time-

**Tullio Siragusa** (4:57)
Right, there's that reminder of the appointment and some fall off of that one too.