Digital Marketing Blog

Cost per Conversion Strategy

Posted by Joana Inch on 11/27/13 9:28 AM

As I am on the agency side of things I usually rely on my clients to educate me about the products that they want to promote but also about their business as a whole. In order for me to make online advertising work for them I need to know:

 

  1. what are the overall costs ?
  2. what are the cost of goods ?
  3. at what cost-per-conversion will they make a profit ?
  4. how much budget can they commit to advertising ?
  5. how many conversions can they handle internally ?

 

These are very important questions to ask as it helps me set the goals I need to meet when I set-up and manage an online advertising campaign and it also helps me measure my success and how well I’m doing for this particular client.

It’s also equally important to communicate to the client that these goals will not be met in the 1st week of advertising and possibly not met in the first month of advertising.

The reason for this ?

 

The first month is all about experimentation! Getting to know your target audience, how they search, how they behave on the website and then off course waiting for them to come back to convert at a later day. Because let’s face it – hardly anyone converts on the spot. They will go and check out your competitors, they will go and do their research, they will get distracted by some other website and only then if they like you best will they come back and convert.  Now this is where Adwords Re-marketing becomes crucial. If you’re not doing it already – start doing it!

But moving on as this post is not about remarketing…
It’s important to communicate to the client that this initial traffic that they receive to their website is New Traffic. Even if you’ve taken over an existing Adwords campaign – more than likely you’ve made changes to it that has captured the attention of a new audience! This audience is new and does need to be given more time to convert.

But wait for it….

wait-for-it

 

 

 

 

 

 

 

 

 

 

Because they do come back and they do convert almost like dominoes so Patience is a Virtue!

And if for this whole month you’ve been making numerous changes to the campaign that hasn’t necessarily increase the conversions but has in fact increased website engagement such as:

* Decreased Bounce Rate

* Increased Time on Site

* Increased pages/visit

* Increased Traffic

* Increased Click Through Rate

 

Then things are going to be Legendary!

Month 2 rolls in and you suddenly have a lot more good news to report to the client. And the wait was worth it because more than likely you’ve made changes to it that will get them loads more leads in the long term.

I know what you’re thinking…. Yes it’s difficult to communicate this “waiting term” to the client, yes they will probably be calling you on a daily basis in the first month asking why they aren’t getting any leads. But just remember:

* be patient

* be polite

* be objective

* show them the facts

* tell them about your strategy

…and eventually they will start to trust your abilities and let you get on with your work.

Most of my clients now don’t even read the reports I send them every month any more J (yes I can tell if you’ve read it)

Here’s one tool generously provided by Google that can help you with this situation.

Analytics-Linked-Accounts

 

 

 

 

 

 

 

 

You may have already linked your Adwords and Analytics campaigns but by going to My Account > Linked Accounts > Google Analytics and then selecting a profile – you can now view engagement information within your Adwords campaign for each campaign, adgroup, advert or keyword as follows:

Adwords-Analytics-Link

 

 

 

 

 

 

 

 

Just make sure you go to columns > google analytics and then select the data you want to see. I choose select all.

So you can now track and compare site engagement and report real, factual numbers back to the client. And you will find that with an increase in site engagement, conversions tend to follow.

Once the conversions have come in – NEXT STEP – focus on decreasing your cost-per-conversion.
I believe if you’re armed with this data you can make some smart decisions within your Adwords campaign that will help you achieve this. For example, some of the things you should be doing are:

* removing keywords and ads with a high bounce rate

* removing keywords and ads with a low time on site

* re-writing keywords and ads with a low CTR

* increasing bids for well performing keywords that are in a low position

 

And remember – tell the client everything you’re doing! You’re not giving away any secrets, you’re reassuring them and increasing their trust in you. By communication your strategy to them and the fact that they do need to be patient – you’re decreasing their stress and worry (after all they are running a business so sympathise a little)

And when you do meet your conversion goals, and then meet and exceed your cost-per-conversion goals eventually and the client is happy – then things will be Legen …wait for it….

 

DARY!

 


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