Up to 11 ads are displayed for any given search query on the Google search engine results page. The top ad positions get the most traffic by far but how do you afford the bid prices to be at the top? You have to be the best at converting each click into a lead, then a sales opportunity, and then revenue for the search terms that matter to you. If your process creates a higher ROI, then you can bid higher and increase your share of the available market, at great reward.
This article demonstrates one way in which we use a Salesforce Adwords integration to gain a major competitive edge in lead intelligence.
An ecommerce software client used Google Adwords to drive the majority of their sales. They wanted to grow, but the market that they operated in was intensely competitive. We speculated that some competitors would spend well over a year’s revenue to acquire a new customer. Aggressive bidding had driven cost per click to well over $20 for many keywords. To thrive in this space required a significant competitive advantage. The Salesforce Adwords integration provided the edge we needed to grow sales by 132% with absolutely no increase in ad spend.
This firm’s prior Adwords managers had optimized ad-spend to acquire leads at the lowest cost per lead. Take this example at left. “Ecommerce software” and “online storefront” offer the lowest cost per lead, and were thus allocated the largest allocation of budget in order to maximize overall lead quantity. Is that the right thing to do? Let’s find out…
After we implemented a Salesforce Adwords integration, we were able to actually track the keywords (and other attributes) of these leads in Salesforce and see the actual outcomes and profitability for these different leads. Let’s take a look:
What did we learn?
- The Adwords manager was misguided when investing in the lower cost leads as they produced very low actual revenue for the client (relative to other leads)
- “.net ecommerce software” produced 51% of sales from just 11% of ad-spend
- “online storefront” produced only 1% of sales from 21% of ad-spend
Executing on these insights
With the visibility obtained by a Salesforce Adwords integration, we learned how the value of different keyword categories might vary for an ecommerce software company. Now we can instruct the Adwords manager on how to reallocate the ad investment in order to grow revenue for the company. Below is an illustration of how the same ad-spend can drive much greater sales for this firm.
- 132% increase in sales from the same ad investment
- Ability to raise bids in key areas to get better ad positions and displace competitors
- Increased knowledge about where to optimize efforts in the future to improve performance even further
Guest post by Tom Bruce, CEO of Conversion Path, a company that specializes in Google Adwords lead generation.