Reduced Cost Per Lead By 85%

PPC | E-Commerce

A sample PPC campaign, including results we achieved by reducing the lead cost by 85% and saving the client thousands in ad spend, was examined in this case study.

How did we do it?

Let’s go through the strategies that I used to change this campaign for the better… AND see if they can be applied to your Google Ads PPC campaigns!

Let’s get to it!

 

Background

The client sells extremely expensive home goods, including bespoke furniture, outdoor furniture, and a wide variety of kitchen items.

All of the products can be found on the website since it’s an e-commerce site. Being such a high-end market, most customers prefer to buy in person rather than buy online.

We offered to lower their lead costs, deliver them more leads while maintaining high quality, and help them reduce their lead costs.

 

The Audit – Huge Opportunities Uncovered

Google Ads is sort of a land mine.

In addition to its immense power, it has grown to be one of the most complicated ad platforms ever developed.

There’s no doubt about it – Google’s #1 goal is to generate more revenue for themselves while leaving you with zero incentive to get a good return on your investment.

However, we have a solution for that.

Auditing the accounts is always the first step we take.

We’re looking for:

  1. Current data to gain insights from (what’s working, what’s not).
  2. Mistakes in the account or setup that lead to poor conversions.

It is a fact that we find opportunities for improvement 100 percent of the time without exaggeration.  

To set the baseline, here’s what the account looked like when it was handed to us before any work was done:

Cost: $2,020

Conversion Rate: 0.34%

Conversions: 5

Cost Per Conversion: $403

At first glance, we see that the conversion rate is only .34%, which is rather low, and that the cost per conversion is much higher than expected.

Following are some immediate steps we took to restart the campaign:

 

Know Exactly Where Every Cent Is Going With Proper Tracking

The backbone of a properly setup campaign is tracking and data.

If you don’t have it, you won’t be able to figure out what campaigns are actually working, and you won’t be able to make sound decisions about what to keep, cut, or scale.

The hard part is setting this up correctly (or not setting it up at all!) unless you’re an expert.

Our research on this account demonstrated conversion settings like “All Page Views” and “Count Every Conversion” were incorrectly set up over the years and led to a lot of false data.

With the “Count Every Conversion” option on, if you click an ad twice and opt-in three times, it counts as three leads when in reality we only have one. This is fine for purchase campaigns, but not so much for lead generation.

Landmines like this are all over the place.

How we fix it:

Using Google Tag Manager, we configured all new triggers and tags that pulled data from Google Analytics and Google Adwords.

All data comes to one place and is properly sorted with Google Tag Manager in every account we touch.

Google Tag Manager makes detecting issues very easy, and all we need to do is install a single tracking code onto our pages.

Increasing CTR With Streamlined Ad Groups & Ad Copy

You create “ad groups” in Google Ads by bidding on a set of keywords and designing the ad copy that gets displayed when users search for those keywords.

In search of a certain keyword, people are searching for something specific and are looking for the solution. 

Because generic ads aren’t necessarily related to the audience’s search, they can increase your costs since your CTR (click-through rate) is too low.

This account used the same generic ad in a large number of ad groups.

This is a big opportunity since 1 ad can’t differentiate between products, emphasize their benefits, and highlight the features of each.

How we fixed it:

Every ad that we ran contained the specific seed keyword in its headline and description.

The user experience is one of the most valuable elements of a high-converting campaign because of its importance.

The last thing you want is an ad for “tire rotations near me” to come up when someone is searching for “oil changes near me.”

It is completely irrelevant and won’t generate a lot of traffic.

In addition to an increase in ad relevance, making this change improved the user experience.

We saw these results by the end of June 2019, from the optimization steps we took and our daily management.

Cost: $1,690

Conversion Rate: 0.42%

Conversions: 7

Cost Per Conversion: $241

Just with these few strategies, you can see that the cost per conversion dropped over 40% since the beginning.

But we’re not done yet.

 

Increasing Conversions With Landing Pages

Making campaigns successful often requires several factors. It’s not just what’s set up on your ad clicks, but what happens afterward.

Most people are not maximizing their websites for the conversion they want when they drive traffic to them.

It’s easy to get distracted from the lead gen campaign when you send your normal website visitors to the lead gen campaign. There are navigation menus, tons of content, and it’s not clear what they should do.

Visitors must know exactly what to do when they land on a page, and all distractions must be eliminated.

That is where landing pages come in.

Landing pages are pages that are designed specifically to increase conversions after an advertisement has been clicked…A campaign’s performance can be greatly affected by this, too!

There are no other links on a landing page. The copy of the landing page is tailored specifically to match your avatar and the exact keywords you’re bidding on, and it has one primary call to action.

There was a ton of room for conversion rate optimization on this account, as it was sending traffic straight to their website.

With a landing page, people will be motivated to take immediate action.

How We Fixed It

With a dedicated landing page, we could kick this campaign up a notch.

We have spent millions of dollars in advertising over the last few years, and we have found that most people are losing money by using low-converting landing pages.

As a result, we made a targeted landing page on the company’s website that encouraged potential customers to see the current inventory and pricing.

Our landing page includes a clear, well-designed CTA and a simple headline with a clear benefit section.

What were the results?

Cost: $1,820

Conversion Rate: 1.19%

Conversions: 32

Cost Per Conversion: $56.90

 

Conclusion

We were able to drop their CPL (Cost Per Lead) by over 85% by setting up proper tracking, optimizing their campaign with our specific process, and applying a focused landing page.

For the same amount of leads we generated in July for the same price as in April, we would have spent $12,896 instead of $1,820.

Cost: $2,020

Conversion Rate: 0.34%

Conversions: 5

Cost Per Conversion: $403Cost: $1,690

Conversion Rate: 0.42%

Conversions: 7

Cost Per Conversion: $241Cost: $1,820

Conversion Rate: 1.19%

Conversions: 32

Cost Per Conversion: $56.90

April 2019

(Pre-PPC)

June 2019

(During PPC)

July 2019

(During PPC)

Work Done:

None (Pre-PPC)

Work Done:

Basic Restructure

Campaign Optimization

Work Done:

Advanced Optimization

Custom Landing Pages

 

The good news is we’re not done yet.

We have so many strategies we can implement to improve the campaign even further as more data becomes available as we manage it daily and optimize it ongoingly.

We can scale as much as the client is willing to pay for the traffic as long as they can handle the volume and maintain a great CPL and quality of leads.

Check out our PPC management service if you’d like us to look after your PPC lead gen campaign.