The PPC Lead Lifecycle & How to Increase Revenue by 21%
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Transcript of The PPC Lead Lifecycle & How to Increase Revenue by 21%
SECTION SLIDE
The PPC Lead Lifecycle And How To Increase Revenue By 21%
Presented byKeegan Brown
Digital Advertising Analyst
• Lifecycle of a PPC lead
• Metrics to know
• How to track the PPC lead through the lifecycle
• Lead analysis and optimization
• A real case study of analyzing PPC leads from Search-to-Purchase
What You Will Learn
Lifecycle of a PPC Lead
• To determine ROI
• To more accurately project growth
• To optimize and allocate budget for grow
• To learn about your businesses strengths and weaknesses
Importance of Tracking PPC Leads to Revenue
PPC Ecommerce Lifecycle
Search Query
Keyword Ad Copy Landing Page
Purchase
GOOGLE ON SITE
PPC Lead Lifecycle
Search Query
Keyword Ad Copy Landing Page
Form Thank You Page
Follow Up
GOOGLE ON SITE
Higher education
Example of long lead cycle
Free Info Packet Application Pay Tuition
2 Months 4 Months
Tour/Orientation
2 Months
Metrics to Know
• Cost per lead
• Close rate for leads
• Break-even point per lead
• Customer lifetime value
• Return on ad spend
Metrics to Know
• Important to know how much you are spending to acquire 1 lead
• Cost per Lead
Total ad spend / Total Number of Leads = Cost per Lead
$26,000 / 162 = $160.49 Cost per Lead
Formula:
Example:
• Requires cross team collaboration• Important to know when creating cost per lead and return on ad spend goals
• Close Rate for Leads
Total number of closed sales / Total number of leads = Average Close Rate
32 / 162 = 19.7% Average Close Rate
Formula:
Example:
• Important as it lets you know how much of a return on ads pend you will need to make a profit
Break-even Point per Lead
(Close rate x Revenue per Sale) – (Cost of Goods Sold/Average Leads per Sale) =
Break-even Point
(20% * $200) – ($100/5) = $20 Break-even Point
Formula:
Example:
Average leads per sale = 100/Close Rate
• Helps define a true value of a lead
Customer Lifetime Value
Average Value of a sale * Number of Repeat Transactions * Average Retention =
Customer Lifetime Value
$200 * 6 * 95% = $1,140 Customer Lifetime Value
Formula:
Example:
• Determines if channel is worth the budget
Return on Ad Spend or ROI
Revenue of service / Ad Spend = Return on Ad Spend
$15,550 / $2800 = 555% Return on Ad Spend
Formula:
Example:
How to Track Leads
How to Track PPC Leads
• Form & hidden form fields
o URL Parameters
o CRM integrations
o Spreadsheet
• Name• Number• Email• Zip code• Other important information to your business
Form Fields
• Fields required to get lead information
How to add hidden forms?
• Add code to form
• Check form settings
• Use CRM form on your landing page
Hidden Form Fields
• Check PPC landing page software integrations
• Use custom CRM integration software like Zapier
Landing Page Integrations
What should you track?
• PPC Specific Information
URL Parameters
o Keywordo Ado Campaign
• Other information
o Deviceo Landing Page
https://support.google.com/analytics/answer/1033867
• Manually match PPC leads to Sales data
Spreadsheet Tracking
Lead Analysis and Optimization
Lead Analysis
Segmentations
• Mobile vs desktop
• Day of week
• Landing page
• Keyword
• Sales person
• Zip code
• Lead follow-up time frame
Landing Page Segmentation
Benefit Focused Copy Landing Page
Sense of Urgency Copy Landing Page
Leads Sales Close Rate Revenue Average Revenue
121 32 26.4% $25,600 $800
Leads Sales Close Rate Revenue Average Revenue
106 14 13.2% $15,988 $1,142
Zip Code Segmentation
Leads Sales Close Rate Revenue Average Revenue
95 16 16.8% $4,000 $250
Leads Sales Close Rate Revenue Average Revenue
120 18 15% $6,000 $333
Leads Sales Close Rate Revenue Average Revenue
86 10 11.6% $6,000 $600
Zip Code 1
Zip Code 2
Zip Code 3
Case Study – Increasing Revenue From Day of the Week Analysis
Sales Process
• 2-3 week sales cycle
• Main steps:
Case Study - Overview
o Form completion
o Sales call
o Quote
o Purchase
Close Rate – Day of the Week Analysis
PPC Data
• Improve weekend close rate
OR
• Allocate weekend ad spend to weekdays
Ways to Increase Revenue
Improve Weekend Close Rate
Allocate Weekend Ad Spend to Weekdays
• Importance of accurate PPC tracking of leads to sales
• The top metrics to know and know how to measure them
• How to track the PPC lead through the lifecycle
• 7+ ways to analyze your lead data
What You Can Take Away
• Identify areas of wasted ad spend
• Overall health of your campaigns
• Recommendations for optimization
• Opportunities for growth
Free PPC Audit
http://vm.verticalmeasures.com/ppc-audit/
Thank You