$142,448 worth of mistakes. How many are you making?
1. Not Knowing the lifetime value of a customer
Have you ever calculated the LTV for your customers? If not, there’s no way to know how much you can spend on AdWords per acquisition or any advertising for that matter. If you don’t know how to calculate your business’s LTV, then start with PDM”s Lifetime value calculator. We created an easy to use LTV calculator for your business. Once you have an accurate gauge of client value you can use it manage your advertising spend accordingly. We removed $18,538 worth of misallocated budgets and bids for our newly converted clients this year.
2. Lack of tracking
Frequently small business owners can’t tell you which of their efforts helped bring in the business. Track each of your ad campaigns and you’ll know where to spend your money in the future. Know for certain what to modify and what to eliminate. Google Analytics is easy to implement and is free. It’s included in all our programs. If you don’t know how many sales or how much money you made as a result of each of your advertising campaigns then how can you focus on what worked? By implementing tracking we have saved our clients thousands in poor performing offline and online ad programs.
3. Not utilizing negative keywords
A common misunderstanding is that the keywords we bid on are actually what is typed. it is and isn’t. What the customer types is contained in what is called the search query. Based on how we want to use keyword match depends on what in the query triggers the keyword you are bidding on. Not utilizing negative keywords is a quick way for your ad to show up in situations that are not relevant to what your campaign goals are. One of our clients was spending $4400 a month on the wrong type of traffic. Simply by adding a negative word such as PICTURE we removed irrelevant traffic and their advertisement no longer showed up for when people looked for images of their product. $52,800 in savings.
4. Dynamic Keyword Insertion
Dynamic keyword insertion is not our recommended approach. The negatives seem to outweigh any good features. It can save time with e-commerce campaigns, but if not thought out completely can invite : trademark issues, ad errors , issues when the keywords are broad and irrelevant, misspelling in the insertion impact brand . We feel the ad copy from keyword insertion is too generic. We are interested in exact match long tail keywords , where we feel the honeypot is. We had a client using dynamic codes incorrectly, with misspellings, and broad match keywords utilizing very generic copy. Before we took over they had spent $14,000 on ad spam.
5. Too many many keywords
Too many keywords is generally either a lazy mistake or one made because there’s no basic understanding of the how the keyword auction, quality score and ultimately segmentation work together. Keywords should be succinct in their relation allowing you to deliver ad copy that is super specific. Yes; this is more complex. I am not joking when i say we have a legal client that has 140 ad groups, most would have put a standard couple of ad groups and never attempted so may . But the ROI is exceptional. We are not most, we are Peerless. Go the extra step and we have ultimate control in serving ads, and controlling bid cost. We decreased this legal clients average cost per click by 39%. Saved $12,890 . Client now gets 143% more clicks
6.Not removing underperforming keywords and ads
Bad things will drag the good down. It’s essential for campaigns to have good stats. When they don’t it impacts your ability to be seen. We generally encounter too many keywords, that have low stats but for pride, vanity or ignorance continue to be bid on. Our experience tells us that campaigns are just not set up right. Often the ads and copy need to be aligned better. One client saved $310 a month by readjusting and cleaning up the ad groups, keywords, and copy. That’s $3720 a year on better traffic.
7. Bad Phone Skills
We track inbound calls. The dollar value attached to lost sales here is hard to actually measure. You never know what someone would have spent. One client last year had a situation regarding a large custom order that we listened to. The phone call was 18 minutes long and very comprehensive. At the end of the call the salesperson never got any contact info. Lucky for them we had the phone number. They called back and got the order worth $16,500 worth of product. They quickly changed their phone protocol.
8. No follow up on leads
Can’t lead a horse to water. We can provide phone calls, track the inbound from and even provide all the intel on live chats. We have sales experience and can help implement some no-nonsense technologies and methods. We are not business coaches, just stakeholders. After setting up a tracking mechanism and inbound lead scoring strategy, one of our banking clients attributed a 15 million dollar loan to PPC. Thru time stamps we determined what keyword and know we own it.
9. No Drip Marketing Program
Understanding your buying cycle is important. Not all customers buy today. Studies show that the smaller the purchase the shorter the time to purchase. Drip marketing is easy if you have your client or potential client data. One of our clients has a 2-year buying cycle. By implementing a drip marketing program not only has he advanced his average buying cycle 1 1/2 years he has increased the number of sales per year. Simply by identifying and separating out his long-term customers and sending a message to them every three months with pictures of new projects. $18,000 in additional sales he is now squeezing.
10. Sending the same message to everyone in email marketing program
89% of all marketers don’t segment their database. Giving the same message to everyone is a bad practice. When consumers receive messages that don’t apply to them, 60% delete, 27% unsubscribe, 23% mark spam. The Direct Marketing Association sites the average ROI is 40:1 when done right. Jupiter Research sees conversion rates up 355% and revenues up 781% for those that segment but only 10% do.
11. Not using any bid modifiers for match type, location or device.
A client was spending .76 cents per click for their brand name. We reduced their cost by adding bid modifiers. We reduced cpc by 65%. This was a positive impact of $6,000 per year they were throwing away targeting the wrong devices and locations.
So with these 11 examples; some quantifiable some not. We helped save or eliminate $142,448 in waste for our clients last year. Give us a call. We would be happy to hear about what you’re doing and talk about how we might help.
Peerless Digital Marketing creates integrated web presence strategies. Multi-screen strategies that help businesses engage with potential customers at the right time and place in the online world. Call Ryan Today 916-450-1335.
Specialties: Internet Marketing & Digital Media Strategy | Google Adwords Certified | PPC | Google Analytics | Merchant Accounts | Programmatic DSP Display | Ad Trafficking | Social Ads| Video Ads | Email Marketing | Web Site Conversion Strategies | Adobe Creative Suite | Word Press | Yelp | Data- Aggregators & Listings | Phone Tracking| Mobile App | Geo-Fence | IP Targeting | Live Chat Technologies | YouTube Video | Internet Radio- Pandora & Spotify