The PPC Lead Lifecycle & How to Increase Revenue by 21%

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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