Optimizing Pay-Per-Click; Real world examples
Pay per click , search marketing, and the issue of relevancy
Although I’m a Google certified professional and help clients manage and improve their pay-per-click efforts, I’m not going to do another “how to” blog post. However, I am serious when it comes to optimizing campaigns; and that includes the ads themselves and conversion-friendly landing pages. So, below I am reviewing various companies promoting software by category, with some opinions on how I would manage these campaigns. Keep in mind that pay-per-click advertising is one of the essential tools for lead generation and e-commerce. The more relevant ad, the higher click rates. The higher click rates, the better the quality score. The better quality score, the lower the cost per clicks will be as well as better ad positioning. Here we go. Don’t forget to click the images to see the larger examples.
Search One: “Accounting Software”
Results
Concerns:
1. Intellitek; the third ad. The ad text suggests an obvious statement, but doesn’t show a clear benefit or feature. The landing page (click below) has no compelling image or headline, and no testimonials or case studies.
http://www.intelliteksys.com/financialsuite.html
2. Peachtreebuyers.com; right side. The ad suggests the product is $89.95. The ad is strong, but a quick scan of the landing page doesn’t show an $89.95 product. If the product exists, it should be front and center, or else I’d bounce.
http://www.peachtreebuyers.com/?gclid=CJvT1tqj4KYCFQjd4AodJC_m0w
3. Turbo Tax has an ad. Turbotax isn’t accounting software, is it? Ad isn’t relevant to the query. When ad’s aren’t relevant, click rates are low; quality score is low, and that means ad positioning is low.
4. Bottom right, there’s a college advertising, sponsoring the keyword “accounting.” Seems to me they need to do a better job with keyword management and add “software” as a negative keyword.
Search Two: “Inventory Management Software”
Results
Comments:
1. SAS. Although I am sure SAS’s services are quality and robust, but the ad doesn’t pertain to my specific needs. There are no keywords in the ad. I imagine that merchandise planning is somewhat similar to inventory management, but the SAS landing page doesn’t mention inventory or software. Google will scan the copy and deem it irrelevant to the search query. Landing pages and ads must be relevant to the keyword queries, or your campaign effectiveness will suffer.
http://www.sas.com/industry/retail/merchandise-planning/index.html?gclid=CN3Ty7uB4aYCFRVx5QodxG3Q2g
2. Clearspider. I’m not in retail, so I don’t know what VMI and RMA is, but it’s another case where the ad needs to be more compelling with a call-to-action. I like the free trial and free demo phrases in some other ads. Pay-per-click is advertising, and a compelling unique message will make your ad stand out. The landing page is OK, but would like to see some detail on case studies and testimonials, rather than flashing logos of clients. The best landing pages easily present bullet points on product benefits and sets the stage to tell a short but compelling story on how firms solve a business problem. In addition, please give me a reason to sign up for a newsletter- what kind of content am I getting?
http://www.clearspider.com/?gclid=CKCokMWD4aYCFcnc4Aodwkib0g
Search Three: “Business Intelligence Software
Results
Comments:
As a b2b marketer, I like white papers as lead generating tools. Most of these firms use their ads to promote their own white papers; which is good. Lots of downloading to do!
Kronos has a strong ad as well, yet the link goes to a page on labor analytics; hardly business intelligence software but related. If someone there is studying analytics, the bounce rates will be quite high. I’m sure the program is related to my needs, but if Google scans the landing page and determines that the page doesn’t include relevant keywords, quality scores will suffer.
Search Four: Let’s have some fun. The search is for “Office Laser printers”
Results
Comments:
Well, even the big guns don’t get it right.
1. Xerox. The ad likely uses a “dynamic keyword insertion” in the headline and text, leading me to believe that if I click, I’m going to see specific information on laser printers. Not so; I am being taken to their generic office products page. I don’t even see a link to a page of their laser printers.
Look at the meta tags on the page- no mention of the word “laser printer.” Zerox needs SEO help, and a specific landing page on laser printers. Next ad.
| <META NAME=”Description” Content=”Increase office efficiencies with quality office printing equipment and office supplies. Xerox all-in-one printers reduce your carbon footprint.”> | |
| <META NAME=”Keywords” Content=”printers, copiers, multifunction printer, scanner, solid ink printer”> | |
2. Office Max and Staples gets it right; I go right to their laser printer catalog.
3. Best Buy has some problems. I’m looking for office laser printers. They are pushing HP photosmart printers. Again, poor keyword-laden ad, and irrelevant landing page. Best Buy needs to optimize their campaign; perhaps better campaign structure, ad groups, negative keywords, and unique landing pages.
I’m sure the companies I highlighted above have outstanding vendors or internet marketing managers; and they all have great products. It doesn’t mean that their campaigns are optimized for performance. The above are simply thoughts based on my years of experience on how I would tweak the campaigns in order to increase conversions, leads, and sales, decrease cost-per-lead, and improve marketing ROI.
If you keywords aren’t relevant to your ads, and your ads aren’t relevant to your landing pages, your campaigns will suffer, your quality score will be low, and your cost-per-clicks will be higher than they should be.
What do you think of my suggestions?
A B2B Marketing-Lead Generation Fable: “The Lead That Jack Sold”
If you remember the fable, The House That Jack Built, then you’ll enjoy the below. The fable below shows a typical flow of how a b2b lead can become a sale through a solid marketing process and lead management strategy. Have a little fun…
The Lead That Jack Sold
This is the lead that Jack sold
This is the CRM that gave the lead that Jack sold
This is the high lead score that was assigned to a sales-ready buyer that was fed to the CRM that gave the lead that Jack sold
This is the case study that the lead clicked in an email that gave a high lead score that fed the CRM that gave the lead that Jack sold
This is the marketing automation platform that sent the case study linked in the email that gave a high lead score that fed the CRM that gave the lead that Jack sold
This is the landing page that was built in the marketing automation platform that sent the case study linked in the email that gave a high lead score that fed the CRM that gave the lead that Jack sold
This is the white paper that targeted a specific buyer persona that was downloaded from the landing page that was built in the marketing automation platform that sent the case study linked in the email that gave a high lead score that fed the CRM that gave the lead that Jack sold
This is the tweet that promoted the white paper from a blog post that was downloaded from the landing page that was built in the marketing automation platform that sent the case study linked in the email that gave a high lead score that fed the CRM that gave the lead that Jack sold
This is the organic listing on Google’s 1st page that was found during research that led to a Twitter follow and the tweet that promoted the white paper from a blog post that was downloaded from the landing page that was built in the marketing automation platform that sent the case study linked in the email that gave a high lead score that fed the CRM that gave the lead that Jack sold
This is the pay-per-click ad that the prospect clicked during initial research that lead to an organic search for the solution at a later time that lead to a Twitter follow and the tweet that promoted the white paper from a blog post that was downloaded from the landing page that was built in the marketing automation platform that sent the case study linked in the email that gave a high lead score that fed the CRM that gave the lead that Jack sold
These are the marketing, lead generation, and content strategies that lead to a search engine pay-per-click ad that the prospect clicked during initial research that lead to an organic search for the solution at a later time that lead to a Twitter follow and the tweet that promoted the white paper from a blog post that was downloaded from the landing page that was built in the marketing automation platform that sent the case study linked in the email that gave a high lead score that fed the CRM that gave the lead that Jack sold
Calculating the ROI of B2B Lead Nurturing and Marketing Automation
I’ve written consistently and have spoken on the benefits of b2b lead nurturing and marketing automation with regard to ROI. Since this is a blog post rather than a white paper, you can read my blog archives as well as the NuSpark Marketing website on the power of marketing automation. This post will go into my views on how to measure the ROI of lead nurturing. There are a number of thought leadership blogs that discuss ROI, but below is an attempt to show the ROI with a realistic case study for an SMB. As a reminder, lead nurturing is the process of communication to non sales-ready prospects through content or social media until that prospect’s engagement with your website and content reaches a threshold (typical a high lead score) that deems them sales-ready. Based on the length of a typical buying cycle, content engagement can take up to 2 years. Without lead nurturing via content, b2b buyers will engage with competitors who have mastered lead nurturing process.
According to Aberdeen research, 84% of qualified leads are not ready to buy; 16% close. If salespeople reject those 84% of leads without nurturing, well, you get the idea…they move on to other solutions. Lead nurturing build relationships. Click here for an introduction on marketing automation.
For my calculations below, we’ll make some assumptions. Certainly actual data from your firm can replace the assumptions, but let’s go through this exercise. Here are those statistical assumptions based on research, and a sample scenario based on a real-world situation:
General close and per-customer revenue data
- 16% of your marketing inquiries are ready for sales
- 10% of your sales-accepted leads close
- Your average value per sale is $5,000
- After your initial sale, customers buy an additional $1,000 in services in their lifetime
- Lifetime value per customer, then, is $6,000
- Your margin per customer is 20%
- Net profit per customer is $4,800
Lead Nurturing Statistics
- Marketing converts 15% of qualified leads into sales-accepted leads over a one year period.
- Of that 15%, sales closes 30% (conversion rates of nurtured leads show between 1x-3x increase)
- Revenue per deal increases 40% (Aberdeen research) Note: seems high to me; for this scenario I’ll be conservative and use 10% increase.
Outside Lead Nurturing Costs (ballpark for this exercise-$65,000 total)
- Annual marketing automation platform: $12,000 (moderately priced solution)
- Annual Consultant costs- planning, process, content mapping, landing page, database, email creation, CRM implementation: $12,000
- Downloadable Content costs (3 white papers, 3 case studies, 3 downloadable checklists): $26,000
- 3 Webinars: Presentation design and platform: $9,000
- Blog Content Consultation: Idea generation, editorial calendar, research, writing: $6,000 (Blog posts are useful for nurturing content)
Current marketing and social media budget ($300,000): “older school advertiser”
- Traditional advertising: $100,000
- Digital advertising: $60,000
- Public relations/Trade shows: $40,000
- Direct Marketing: $60,000
- Social Media: $5,000
- Outside media vendor/consultant costs: $35,000
Reallocated budget based on increased emphasis on digital marketing to generate website leads ($300,000)
- Traditional advertising: $60,000
- Digital advertising: $100,000
- Public relations/Trade shows: $20,000
- Direct Marketing: $25,000
- Social Media: $15,000
- Outside media vendor/consultant costs: $15,000
- Marketing Automation/Lead Nurturing costs: $65,000 (Again, this includes platform, management, content)
Ok gang, this is a simple exercise remember, but certainly based on a potential reality. Let’s look at the before-after scenario.
Before Marketing Automation
- Annual quality leads marketing sends to sales: 1,200
- Sales based on 16% conversion rate (Aberdeen study per above): 192
- Lifetime revenue per deal: $4,800
- Lifetime revenue generated: $921,600
- Marketing costs: $300,000
- Marketing Net profit: $621,000
- Marketing Cost-per-sale $1,562
- Marketing ROI: 107%
After Marketing Automation
- Annual quality leads marketing sends to sales: 1,200 (In reality, this scenario will likely achieve more leads due to increased emphasis on digital marketing, but let’s stick with 1,200. These are leads that were generated by landing pages and webforms.
- Leads sent to sales that were closed (16%-Aberdeen study): 192
- Lifetime Revenue generated: $921,600
- Leads NOT ready immediately: 1,008
- 20% of leads not marketing qualified (Sirius Decisions research): 202
- Remainder of leads in nurturing: 806
- 15% of those leads sales-ready in a year: 120
- 30% conversion rate estimate- sales accepted leads to closes: 36
- Lifetime revenue per deal (+10%): $5,280
- Nurturing revenue generated: $190,080
- Marketing costs: $300,000 (includes marketing automation and content)
- Total revenue generated-sales-ready closes plus nurtured sales: $1,111,680
- Marketing net profit: 811,680
- Marketing Cost-per-sale: $1,315
- Marketing ROI: 170%
Summary
By not spending more on marketing, but rather reallocation to increased digital presence, content, and lead nurturing/marketing automation, increased revenue is generated, increased profit, lower cost-per-lead, and increased marketing ROI.
The point here is, by putting funds, effort, and resources to a viable lead nurturing program, you’ll receive quality leads and higher close rates. That’s according to the metrics as detailed above. If you can go through this exercise with your own numbers, you’re likely to see the benefits of lead nurturing as well.
If you’d like to discuss the formulas within the above scenario, or your own business situation, feel free to contact me. Ready to get started?
12 B2B Marketing/Lead Generation Assessments; Is Your Firm Optimized?
Sometimes it’s good to step back and assess your eMarketing and lead generation strategy and tactics
All of our initial engagements begin with a 12-step lead management assessment. Before recommending any changes to a strategy or tactic, it’s ideal to review our checklists in order to optimize. After we do our assessments, we put together a detailed strategic plan designed to optimize each specific element of your marketing strategy. We’re always surprised how many firms aren’t optimized for lead generation or sales conversion. So, please assess your firm; it’s goals, audiences, strategies, and tactics. Review our approach.
Each assessment we use is prepared in question format. Topics covered are:
- Overall Marketing/Branding
- Target Audience
- Lead Management Process
- Lead Generation Strategy
- Media Strategy
- Search Marketing
- Search Engine Optimization
- Social Media/ Blogging
- Website/Landing Page Conversion Optimization
- Content Strategy
- Lead Nurturing Strategy
- Analytics/ Website Management
Here are some examples of what we ask for each assessment:
Overall Marketing
- What makes your product/service unique?
- What are your business challenges?
Target Audience
- Why is a prospect engaging with you? What do they need?
- What are the top 3 reasons why a prospect should consider your solution?
Lead Management
- Do both sales and marketing departments agree to what is defined as a universal lead definition/customer
- Are there guidelines in place for when marketing sends leads to sales?
Lead Generation
- What are your current top lead generators based on quality of leads?
- Do you have an approach to upsell or cross-sell existing customers?
Media Strategy
- Have you strategically combined traditional and digital media channels?
- How would you rate the effectiveness of your digital media buys?
Search Marketing
- Are you pay-per-click ads linked to specific, relevant landing pages to limit bounce rates?
- Are you ads compelling, promoting key benefits, unique, and a offer a call-to-action?
SEO
- Do page URLs contain relevant keywords, succinct, and descriptive?
- Have you analyzed top keywords from a prospect’s perspective?
Social Media
- What is the clear benefit to your firm by participating in social media channels?
- Have you researched specific channels and have a strategy to engage within each channel?
- For your blog, do you have an editorial calendar prepared, and is it being followed?
Conversion
- What is the goal of your website or landing page? What do you want visitors to do?
- How will you measure these goals?
- Is your copy written for your buyer’s needs and with their language?
Content
- Do you have a content strategy for each phase of a prospect’s buying cycle?
- Have you developed buyer personas with which to target your content?
Lead Nurturing
- Are you aware of the benefits of a sound lead nurturing program for your firm?
- Do you utilize a lead scoring model? Does sales and marketing agree on the score that determines when sales receive high quality leads?
Analytics
- Do you understand the objectives of setting up conversion goals in analytics?
- Are you consistently reviewing website data and reports, and making marketing decisions based on the data?
To download are full set of assessments, click on this link: Marketing Assessments. I hope you realize the importance of assessing each element of your strategy. Only by optimizing each segment can you fully see and measure the benefits of a lead generation/lead management strategy with the goal to grow your firm and increase marketing ROI.
2011 Marketing Resolutions to Consider
Welcome to 2011. Everyone seems to be doing their list of resolutions. This is a good time to think about your goals for 2011. For b2b marketers, think about your target audiences, and continue to understand how they research products. Have you done any business resolutions? Perhaps the list below can help:
1. You will embrace social media for what it is, and do a better job engaging with prospects. Yes, I had to start with a social media resolution. Social media is about finding prospects who use social media channels, tactfully engaging with them, and learning to build relationships with them. It’s not about posting content; it’s not about generating ROI from these channels, but it IS about helping prospects solve their problems by contributing relevant dialog and conversation. Don’t rely on social media by itself; but include it as part of an overall marketing strategy.
2. You will think about mobile marketing as a strategy. Smartphones and tablets are growing in household penetration. How does your website look on mobile devices? Let’s think about optimizing your online content for mobile. It’s still about first impression; whether that impression comes from computer or a mobile device. Also keep an eye on QR code technology (those square bar code things) as a compelling tactic to increase engagement.
3. You will improve your website call-to-action tactics. Look at your website. Have you made it simple for prospects to contact you? Do you have convincing content that will encourage me to call you or give you my email address? If there’s no clear way for me to begin an engagement with you, I may leave your site and not come back. So, it’s a good time to look at your website from a content and conversion perspective. Website’s are more than online brochures; they need to be lead generators!
4. You will agree that SEO is crucial for my website’s online visibility. If you have a website, and your prospect looks for your product online, and you’re not there, those leads go to competitors. An investment in a comprehensive SEO strategy will do wonders for your search engine positioning. It’s more than just internal meta tags and page titles. SEO is an art and a science. It takes time, effort, investment, and most-of-all, content that includes keywords your prospects look for to find you.
5. You will invest in content marketing. As alluded above, content affects search engine optimization, content affects social media strategy, and content affects website conversions. An optimal content marketing strategy is the fuel that drives all aspects of internet marketing. Blogs-white papers-case studies-keyword focused website copy-podcasts-webcasts-videos can all be deployed strategically and contribute to generating quality leads to your organization.
6. You will think bottom-line results. Whether you’re using traditional media, digital media, social media, or a combination, there are no optimal models for campaign attribution, meaning how a certain tactic affects the decision to engage with your company. Google Analytics measures “last-click” engagement, and generally avoids all other touch points that leads a prospect to you. Certainly measuring website activity by media source is quite important for decision-making, but top management is looking at the big-picture. Are marketing dollars being spent efficiently? Are sales growing? Are leads being generated with my current mix?
7. Think Customer. All you do- media, creative, content HAS to be focused on your customer. Have you invested in research on your prospect’s pain points and purchase drivers? How long is their buying cycle? You need to understand your target audience personas. Once done, your content marketing strategy will fall into place, as will your media and lead generation strategies.
8. You will include lead nurturing strategies as a key component of your marketing mix. I’ve spoken about this at conferences and speak to prospects everyday on the benefits of lead nurturing. By investing in a marketing automation solution, you’ll not only be able to target relevant content on an ongoing basis to audiences most likely to click, but sales people will see higher win rates, and those leads who aren’t ready to buy now, WILL include your solution when they ARE ready to buy, because you continue to engage prospects with compelling problem-solving content through the marketing automation process. Think about it for 2011.
9. You will increase your understanding of analytics and marketing ROI. From an analytics perspective, you need to really understand your goals, and how audiences engage with your website to achieve those goals. Google Analytics provides a myriad of reports and audience segment analyses. By understand the keywords people use to find you, what pages they visit, and where they come from, you can make real marketing and website decisions. Additionally, if you’re not measuring ROI, and how your tactics affect your revenue stream, you cannot make proper marketing decisions.
10. Relax. And focus. And prioritize. Keep learning about how technology affects your business. Don’t procrastinate, but start thinking about the above. If you need to outsource to specialists, there’s nothing wrong with that. Firms like NuSpark Marketing exist to add value to your department, and make you a star at your firm. You always have to make decisions on how to spend marketing funds. By utilizing specialists, you can spend more time on what you do well, and those specialists will complement you. It’s all about the bottom-line, and having the knowledge and skill-set to implement a proper lead management system, which covers attracting website visitors efficiently, converting those visitors into leads, and transforming those leads into sales. All phases need to be optimized.
There’s much to think about. Let’s make a 2011 the year you finally embrace the importance of a sound marketing/lead generation process, and start growing your marketing ROI utilizing channels and content that your target audiences utilize.