So you have set up your digital marketing campaign based on your Objectives, Audience Targeting & Budget and it has been running and collecting valuable data to analyse.
The first word you now want to hear is… PREDICTABLE. The results you are achieving week after week, month after month are now showing a degree of predictability in terms of your results against your objectives. You are now having success thanks to the patience you have shown in the split testing you originally set up, collected data and made changes to your Advertising and Landing pages.
The Ads are getting attention and the Landing Pages are converting at a good level to produce a profit in your business.
It is now time to hear the second word discussed…SCALABLE. You can now start upping your budget and see how this impacts your profits. Pour more fuel into the tank and see how this engine really performs! provided you can handle more new enquiries and sales scale this as high as it can fly.
Do not underestimate the power of these two words.
Once you really get this stuff you can then become ruthless in your marketing and challenge many different tools and strategies put in front of you. Ask if this strategy can produce predictable and scalable results in your business. Certainly question any SEO or Social Media ‘shiny object’ salespeople who email or call you about this!!
Let’s assume that the number one objective for your digital campaign is to increase profits. So how do you know if you are actually making a profit?
Forget all the ‘fancy’ metrics such as Impressions, CTR, etc. The key metrics in your campaign must be Sales for eCommerce and Number of Enquiries + Cost Per Enquiry for Lead Generation campaigns.
You have to be ruthless with your assessment of profit and that means accurate tracking of your conversion actions (Number of Enquiries + Cost Per Enquiry).
If you cannot track these metrics then you should think seriously about continuing with your chosen channel of marketing, especially if you are a local business sold down the river on some ‘social media brand awareness’ waste of money exercise by your Digital Agency.
Ok, rant over!
I would like to introduce you to the concept of ‘Break Even’ so you can really dig in and see where you are profitable.
Here is an example of XYZ, a local business, and to bring in one new customer/client they actually make £500 profit. Working backwards, their sales process involves a phone call to their business (conversion) and then a meeting to close the sale. Their process is as follows:
1 new customer = £500 profit
1 new customer = 3 meetings
1 meeting = 5 phone calls
Therefore: 1 new customer = 15 phone calls
£500/15 = £33 Ad spend to generate 1 phone call to ‘Break Even’
We now have the metric of £33 as your ‘Break Even’ which means your budget in your online campaigns is to generate a conversion action (phone call) for that maximum amount.
This ‘break even’ concept is critical to understanding if your campaigns are actually profitable. You also now have a threshold and the plan of action going forward is to test ways to:
So what is your ‘break even’ in your business for your products/services? How much ‘wriggle-room’ do you have in your online marketing campaigns to generate a new enquiry such as a phone call or a web form completion?
This is a big change and brand new so you have the opportunity to use this now before you local competitors do.
Get double your benefits displayed within your bigger Ad, better click through rates (CTR) and higher Quality Scores.
Here is the full article…http://www.wordstream.com/blog/ws/2016/05/25/google-expanded-text-ads
This will take some work amending your Ads but well worth it. Split test your new Ads against your current Ads and note your click through rate.