When it comes to marketing campaigns, every marketing professional knows that it is important to know the value of the leads it generates. By setting up a lead scoring system, you can assign a value to the asset in order to maximize profits by focusing on leads that will generate the largest revenues for your business with the least amount of effort.
Lead scoring helps you get a better understanding of how certain keywords impact your conversions and ultimately how successful your Pay-Per-Click (PPC) campaign is overall.
How do I track ROI from PPC?
Unless you are only talking about a couple of leads per week, you need to have a software application that helps you track keyword conversions. Type it into your CRM and include lead scoring based on your experience with the new customer/client. Using a software application specifically for this purpose will help you give value to your data and allows you to focus on the keywords/campaigns that are more successful, focusing your efforts on revenue producing PPC campaigns.
How do I launch a ROI-driven PPC strategy?
An ROI driven PPC strategy is one that has been developed specifically to produce revenue. Track metrics, write convincing ads, targeting the keywords that have a proven track record as revenue producers, and using relevant landing pages are all important elements of launching an ROI-driven PPC strategy.
We get a lot of conversations, but a large portion of them do not convert to customers/revenue; how can I fix this?
The biggest failure for PPC campaigns is not targeting keywords that have a proven track record of producing results. Using these “money keywords” are the ticket to converting conversations to sales. In addition, the formula you use to achieve your conversion goal when bidding for keywords should be based on the conversion rate you are trying to achieve rather than on the amount you are looking to bid your keywords at. For example, let’s say you are trying to achieve a 5:1 ratio; knowing this, you should structure your campaign based on CPA conversion goals.
What are some ROI tracking tools for PPC?
The most important thing you can do for your PPC campaigns is to use value track parameters and a robust CRM with lead scoring. This allows you to analyze your PPC campaigns, target your money keywords and develop real ROI-driven PPC campaigns.
How do I track ROI from PPC with a complex and long sales cycle?
Lead scoring is important for this because you will need to understand the value of each lead along the sales cycle. This falls under the low-hanging fruit theory, by scoring leads, you’ll know which prospects are closer to a sale, and which are further. This will help to prioritize where to put your efforts.
How do I generate ROI reports for PPC campaigns?
PPC campaign tracking software is paramount to the analysis process. Having tracking software in place will allow you to properly triangulate data between PPC traffic and CRM leads/sales.
How can I increase year-over-year ROI results from PPC?
The best way to increase your year over year ROI from your PPC campaigns is to track every campaign and analyze the results. Find your money words and target your campaigns toward those keywords to maximize profits. It’s also important to monitor which ads are performing best, and put more into those better performing ad. By following this process, you will begin to hone in on the PPC campaigns that work and can focus your efforts on the campaigns that pay off.
How do I measure revenue generated per lead?
Calculating ROI is a fairly straightforward process, if you know what you are looking for. The basic formula for ROI is calculated like this:
(Profit – Cost) / Cost (Profit minus cost divided by cost).
However, when it comes to calculating ROI for PPC, there are several different ways to do it.
Return on Ad Spend
When it comes to PPC, when advertisers talk about ROI, many are actually referring to ROAS or return on ad spend. ROAS is a simple formula to calculate as well. It is generally expressed as a percentage.
(PPC Profit – PPC Cost)/ PPC Cost x 100.
For example, let’s say that you have $1,000 in sales from your PPC campaign. You paid $500 against the PPC click costs. Your ROAS would be 100%
$1000 profit – $500 cost = $500 / $500 cost = 1.0 = 100%