Google AdWords allows you to set up Conversion Tracking so that you can track exactly how much ad spend it costs in order to get a Conversion, which might be an Order, an Enquiry or a Phone Call.
To ensure that they get a good return on their AdWords spend, one of the key things I track for clients is how much they are paying per conversion. Of course the lower the conversion cost the better, but it’s also good to work out the maximum cost that a conversion is worth.
Here are some things to consider when working out your maximum cost per conversion.
- What is the average amount of profit that you make on each order or enquiry that is placed?
- If you are a service provider who books appointments, consider how much earning potential you are missing out on if appointments are empty.
- How much of your profit can you spend on advertising while still making it worthwhile having the order?
- What is the value of a acquiring a new customer in the longer term?
- For example, if you spend a lot of your profit to acquire a new customer, will they come back direct and place an order again in the future?
- For service providers, what is the value of follow up appointments that are booked after the initial consult.
- Do you have an email marketing or social media program that keeps you connected to your clients to encourage them to buy from you again and again?
- For example, if you spend a lot of your profit to acquire a new customer, will they come back direct and place an order again in the future?
Consider the answers to the questions above when working out how much a conversion is worth to your business.
Then, once Conversion Tracking is set up, you’ll be able to find out how much a Conversion currently costs and start optimising the campaign to improve the performance of the best converting keywords, and pause those that don’t convert. Your aim will be to stay under the Maximum Cost that a Conversion is worth for your business.
If you’re acquiring new customers via AdWords, have marketing programs set up to retain their business next time they need your goods or services.
Need help with Google AdWords?
Feel free to leave a comment below or give me a call on 03 9340 9018.
Until next time
Melinda
Image courtesy of nokhoog_buchachon/ FreeDigitalPhotos.net
Melinda aka Mel is a Google Partner, Google Ads & Consultant, Speaker and Trainer and co-owner of Click-Winning Content.
Mel provides results-driven services to organisations around the world and is committed to never using an acronym without explaining it first. She also likes greyhounds as pets, grand slam tennis, cracked pepper and Melbourne sunsets.
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