PPC is getting harder, more competitive, and more difficult to implement. It’s fast becoming difficult to achieve healthy ROI by relying on PPC campaigns exclusively. There are several reasons why your PPC campaigns aren't working. You have to find it out.
7. Sushi King
Overview
Sushi supply Shopify store
Google AdWords is a primary
channel for customer acquisition
Clicks 1,000
CVR 5.0%
Customers 50
CLV $100
Gross
Profit $5,000
CPC $5.0
Cost $5,000
ROAS 100%
CAC $100.0
8. Sushi King
Improve results by applying BASE
methodology
Before After Difference
Gross Profit $5,000 $14,325 $9,325
Cost $5,000 $5,000 $0
ROAS 100% 287% 187%
12. If you don’t track CLV,
you rarely focus on
maximizing it
13. CLV = AOV x T x
ALT x AGM
AOV = Average order value
T = Average monthly transactions
ALT = Average Customer Lifespan
(in months)
AGM = Average gross margin
35. Action: Create Offers For Each Dimension
Awareness stage
Intent: low
Objective: lead generation
Offer: Sushi maker’s guide
Consideration stage
Intent: medium
Objective: lead generation
Offer: Coupon for the first time customers
Decision stage
Intent: high
Objective: immediate sale
Offer: Free Shipping & Free Roller Kit with Any Purchase
43. Action: Analyze
Search Terms
● Relevant search terms with good KPIs.
An opportunity to expand. Control the
bids and improve the ad position and
increase the impression share to get
more traffic.
● Irrelevant search terms you don’t want
to target. Exclude full term entirely or
the words not relevant to the campaign.
● Relevant search terms with poor KPIs.
Analyze the KPIs and decide the next
steps: exclude or add as exact match
keywords to manage separately and wait
for statistically significant data.
48. Action: Analyze
Locations
● Relevant locations with good KPIs. I
like to use two levels of KPIs: primary
(conversions and cost per conversion)
and secondary (clicks and CTR). This is
an opportunity to expand.
● Irrelevant locations you don’t want to
target. Here’s how you can exclude a
location entirely from your campaign.
● Relevant locations with poor KPIs.
Here, you can exclude or add specific
targeted locations to manage separately
while you wait for statistically significant
data.
49. Traffic Cleanup
Impact for Sushi
King
Improving traffic results in more
clicks in the right buyer stages
Awareness Consideration Decision Overall
Clicks 650 500 100 1,250
CVR 4.6% 7.0% 18.0% 6.6%
Customers 30 35 18 83
CLV $173 $173 $173 $173
Gross
Profit
$5,167 $6,048 $3,110 $14,325
CPC $1.8 $4.0 $18.0 $4.0
Cost $1,200 $2,000 $1,800 $5,000
ROAS 431% 302% 173% 287%
CAC $40.1 $57.1 $100.0 $60.3
50. Sushi King Results
Improve results by applying BASE
methodology
Before After Difference
Clicks 1,000 1,250 250
CVR 5.0% 6.6% 1.6%
Customers 50 83 33
CLV $100 $173 $73
Gross
Profit $5,000 $14,325 $9,325
CPC $5.0 $4.0 -$1.0
Cost $5,000 $5,000 $0
ROAS 100% 287% 187%
CAC $100.0 $60.3 -$39.7
More advertisers are entering the market.
Less advertisements per page. To create a desktop search experience similar to mobile, Google removed right hand side ads in February of 2016. This reduced the number of available advertising spots from 11 to 7.
CPC is going up. It’s no longer economical to simply buy traffic.
(Internal vs. External Factors)
This shows that PPC results are not isolated. They are affected by other factors. Therefore, they should not be isolated and their performance should not be isolated completely.
Not knowing you have a problem, Not checking if you have a problem, Not knowing where to check
We will go over each mistake and use real number to understand the impact to your ROI.
I know Kurt talks a lot about making money for his clients. Our approach is very similar. In our examples, we will talk about how each mistake affects your bottom line.
We will go over each mistake and use real number to understand the impact to your ROI.
I know Kurt talks a lot about making money for his clients. Our approach is very similar. In our examples, we will talk about how each mistake affects your bottom line.
CLV helps to predict profit over the course of a customer’s lifelong relationship with your business.
Companies that don’t measure CLV rarely focus on maximizing it.
Competition has driven CPC’s to higher levels. Knowing your CLV allows for higher Customer Acquisition Cost (CAC).
You have leaks in your sales funnel, but don’t know where to start looking for them
Once you understand how your steps work
Step 1. Dig deeper, analyze your shopping and checkout behavior reports, and find problem areas. Find the drop offs. Different dimentions.
Step 2. Fix the problem areas.
Step 3. Review your stats again to see if there’s improvement.
Search Term. The exact word or phrase a person uses on the search engine to find what they were looking for (real world).
Keyword. The word you use to target search terms on paid search platform (marketer world).
AdWords has different location settings that could cause your ads to trigger in areas you don’t want them to. You could be triggering in three different capacities. They are:
Physical location
Location of interest
Both