How to Optimise Lead Generation Campaigns & ROI for Service Industry
Companies are advertising to make money as there are a lot of other benefits with the online advertising, but ultimately, a successful AdWords lead generation campaign makes money. A lot of online marketing agencies advertise that they optimise for ROI, but sadly, when it comes to lead generation campaigns, most optimise for cost-per-action (CPA), not ROI. The fact of this matter is, when it comes to lead generation campaigns, it’s easier to optimise for CPA than to optimise for ROI.
For example, if one of the clients uses AdWords to drive leads for their B2B business. They recently expanded their offer on AdWords which is a great source of leads for them as they wanted to try advertising with their new offer on AdWords. At starting it will be looked like everything was going smoothly but when we compared with their average campaigns, the new campaign drove more than the conversions at lower cost-per-lead. Since a client can track campaign results through to sales and revenue. As it estimated with the CPA approach, this campaign would have looked like a winner. However, these leads closed at 1/5th the rate of their other leads, so the campaign was actually a budget black hole.
However, if you are running ads to generate leads, a conversion isn’t the same thing as a sale. To know what percentage of your leads typically become sales, you can estimate what sort of CPA you’ll need to produce a positive ROI. The only problem is, this sort of estimate doesn’t account for lead quality. More Leads Does Not Always Equal More Sales.
It’s all About Lead Value, Not Lead Volume
A great CPA often fails to translate into real revenue due to lead generation as you do everything to produce leads and to convert them, but the real problem is with the PPC campaigns probably it needs a jerk. Having a right data, it’s actually fairly easy to make those jerks by experience the most companies what actually they have data to optimise for ROI.
Accurate ROI Optimisation
ROI Optimization fully utilises the data in your CRM to directly or indirectly optimise your campaigns by –
Automatic Data Integration
Automatic integration is primarily reliant on your Lead Management System or CRM’s capabilities. However, you’ll need to capture and store the GCLID (Google Click ID) in your CRM. If your CRM integrates directly with AdWords, you should be good to just let things run. On the other hand, if your CRM does not directly integrate with AdWords, you’ll need to create an offline conversion and export file and upload it into AdWords.
Manual Data Integration
To set up Manual Data Integration, there are still loads of sales data that you can take advantage to optimise for ROI. There are some common segments that can be used to track the AdWords campaign performance through to actual sales and revenue.
Campaign Name -The name of your AdWords campaign.
Quality Indicator- lead pass through a quality indicator before becoming an opportunity or ‘quality’ lead.
Keyword -The keyword that your lead’s search generated.
User Location -Where did your leads will come from?
Landing Page- What landing page or variant to end up.
Product/Service- What did the lead end up buying?
Each of these segments allows you to take a deep dive into performance based on profitability and make key decisions to improve ROI. Depending on the focus of your campaigns, there are many more segments that can be utilised based on what’s most relevant to the business. If any of these segments are not available in your reports, check with your Lead Management System or CRM’s capabilities to add them. Some of these will work off of specific restrictions.
Finally, if you’re just beginning to capture this data, remember, it takes longer to collect accurate sales data than it does to collect meaningful click or conversion data. However, once you have the appropriate data, you’ll be in a much better position to maximise profitability and improve lead quality. Successful lead generation campaigns don’t end with a conversion, they end with a sale. To really get the most out of your AdWords campaigns, you need to optimise for ROI, not CPA.