How To Us AdWords to Grow Your Business
We’re going to talk about something very, very important, namely how to plan your AdWords campaign. Now this is a very important step, because most people I’ve talked to fall into one of three categories when it comes to AdWords. And, you know, all three can be very frustrating. Let me explain why.
Three categories Of Frustration
The first category is people who are already advertising, but they are not getting very good results. They may be getting mediocre results, but it’s not looking too good. The second one is people who are considering using AdWords, and they want to know the best way to start. And there’s so much information out there that it can be kind of confusing, so they have a hard time getting started. The third category is people, maybe like you, who have used them before, but didn’t get good results – if they got any at all. No matter which category you fall into, they can all of them can be extremely frustrating and make you feel like this thing is unattainable.
What Separates AdWords From Traditional Advertisement?
Now there are a few things that actually separate AdWords from any other form of advertisement. The first one is the fact that you are able to plan out your marketing. Now, what I mean by plan is that you’re actually able to see some data and get some estimates along with what I’m going to give you today. And this will give you a fairly good idea of the things you need to do. Also, you’re able to track and monitor your results. You don’t have to stick to anything that’s not working but you may have to make adjustments. You can also build your advertising based on what actually works for you. And lastly, you can monitor to be sure that the results match your goals.
These are the four areas where most people make mistakes. Now, the key to AdWords is to have a plan and set everything up according to that plan in order to maximize your results. As mentioned before, most people tend to forget to plan, but think about it – you plan everything. You plan your business, you plan your family life, you plan most things, and although you may get a hiccup every now and again, you just make a few adjustments. It’s the same exact way with AdWords.
Now, if you’re already using AdWords, you already understand that something about it just works. I mean, you hear all these great stories about how it works, how business owners actually grow their business using it. And about the whole shopping frenzy that took place online last year. So if you’re actually getting bad results, all we need to do is develop a plan and a strategy.
And of course the purpose of that is to get more customers, right? People actually use their mobile devices to find businesses like yours. We just need to get your website in front of them. So the next question I would like to ask is where do we start? Well, the first step in any form of digital advertisement is to determine your end goal. Once you have an end goal in mind, it is easier to determine the route you should go to reach your destination. Right? It’s just like going on a road trip – if you don’t know the actual address you’re ultimately going to, you can’t punch it into Google Maps to get a route. And most importantly, if you want a shorter route, you can’t get that without it either.
Mt. Everest And AdWords?
So, I’m going to give you an example. Let me put it to you in a different way. For most of us, climbing Mount Everest is a symbol of great achievement. I mean, not too many people accomplish that. Now, stop and think about this for just a moment. Before anyone undertakes this awesome climb, they do two things. First, they already have their end goal in mind. And secondly, they’ve already prepared themselves for the entire journey from Mount Kathmandu to base camp and beyond that to the top of the world. People who plan to reach the summit of Everest are asking big questions, and they are also planning thoroughly before even setting foot on the mountain. Now, I want you to keep something in mind that’s extremely important. There is no such thing as digital advertising, where you simply press a button and start getting customers.
This is the secret most people won’t tell you. And if you have a digital marketing agency that’s telling you this, run for the hills. There is no such thing, because it’s all about planning, tracking, and building for better results. So, today I’m going to be your guide, and we’re going to climb Mt. Everest using this great tool called AdWords. But first we want to determine our plan for reaching the top of Mt. Everest, meaning we’re going to see our business grow. And all we’re doing is using this tool called AdWords.
The Ultimate Plan For AdWords
So let’s start by establishing the game plan you need to establish your goal. We have to determine a few things that are going to be very important. The most foundational and most important thing we want to determine is the number of clients we have now. And secondly, we want to determine how many clients we would like to add to this on a monthly basis, because if we don’t know that, we can’t move forward with the next step.
So for example let’s say your service 10 clients each month , since each one is worth $1000. We need 10 customers if we want to add 10,000 dollars in monthly revenue to our bottom line. So we know that if we want to add ten thousand dollars in revenue to our bottom line monthly, we would need 10 new clients every month. So this will serve the overall goal we want to establish at this point. Now, just by doing this step, we’ve established two things. The first is that we now know how many clients we need to reach our monthly goal, and the second is that we have actually established an average order value, which in marketing terms is known as AOV.
Now, let me break that down for you. The average order value is very important, because it determines how many customers you need to meet your goal and actual revenue. Without that, it’s hard to move to the next step. And what we’re going to do next is actually to take a look at what we call the offline conversion ratio. Now this may sound a little complicated, but it’s really very simple. The question you want to ask is how many people actually become clients or customers, once they call to enquire about the services you have to offer. Let’s look at an example here.
Let’s say Bob calls and says, hey I’m interested in your services, what do I have to do, or how much does it cost? Now, at this point we have what you call lead, but we need to ask another important question – if we have 10 Bobs calling, how many of them are we able to actually convert into customers. Now this question is important, and I know you’re thinking, well, if they haven’t called this week how would I know? Just look back at a previous week, if you have phone records or other data, look at that information and see how many in fact became customers. Now I want you to think of it this way – if we have, let’s say, 10 people who call your business within a week, out of those 10 people, how many are you typically able to convert into customers?
So, continuing with the example, let’s say your answer is 3. That means if 10 people call, an average of three out of 10 actually become customers of yours, which equals 30 percent. This would mean that you actually have a 30 percent offline conversion ratio. So, now we have three things established in our plan. Okay. And this is all going to come together, so stay with me. Number one, we have our goal of 10 new clients equaling 10k in revenue. Number two, we have what you call an average order value or AOV that totals one thousand dollars per client. And number three, we now have an offline conversion rate of 30 percent. So, at this point we’re able to calculate the total number of people we need to actually call our business within the next month, so we can achieve our goal.
Because if we have 10 people call, we know we’re going convert about 3. So, in order for us to get 10 new clients, we would need at least 34 people to pick up the phone and give us a call. Now, the key to all of this is to figure out how much traffic we actually need to drive to our website online in order to achieve those 34 calls. I’m going to give that to you in a mathematical equation to make it a bit easier. If we have 34 people times our offline conversion rate of 30 percent, that’s going to total somewhere around 10 new clients. Now, the next thing we want to determine is what you call the online conversion rate.
Online Conversion Rate
The online conversion rate means that out of X number of people visiting your website, you’re going to get Y leads, and it is very similar to our Bob example. Everybody who picks up the phone and gives you a call is not necessarily going to do business with you. And it’s important for you to keep your expectations realistic in this regard, because once again, when most people start an account, they get clicks and they’re expecting everybody to call, and they think they’re going to convert all this business, but it doesn’t work that way.
Now, you can implement Google analytics to understand or know what your online conversion rate is on your website. But if you don’t know how to do that, it’s okay, because in the marketing world we have what you call a safe bet, and a safe bet is that if we have a brand new website or don’t know what the conversion rate is, you’ll want to assume a worst case scenario.
Worst Case Scenario
Now the worst case scenario is this – if we drive x number of people to our website, we’re going to have 1 percent that actually picks up the phone and gives you a call, which put in layman’s terms means that if you have 100 people come to your site, you’ll want to assume that only one person is going to call you.
So, at this point we’re going off a worst case scenario number of 1 percent, because we don’t have a landing page. Now we take that online conversion rate of 1 percent and determine the amount of traffic that’s needed to our site monthly to meet our goal and phone calls. And I want you to picture it like this – you have this big funnel and a bunch of people are jumping into this funnel, and we’re going to actually narrow it down by the numbers. Okay, so let’s take that 1 percent number and figure out how much traffic we actually need to drive to our website to achieve our goal of 10 new clients by driving 34 new calls to our business on a monthly basis. We would need to attract 3400 people within your market who are looking for services like yours.
And once we determine that we have 3400 people looking for services you offer, the question is – what’s the next step? It’s as simple as this: we put your landing page or website into their search results. That’s really it. Now, out of the 3400 people that come to your website on a monthly basis, we’re going to potentially get 1 percent to call. Now, this isn’t a difficult thing to do, because let’s say that once we start, the conversion rate is really 2, 3, 4 percent or higher, that’s all the better. We just don’t want to assume, because we don’t have any data. So with that being said, if we drive 3400 people to the site on a monthly basis and we’re able to get 1 percent to call, that means we’re able to establish 34 new phone calls.
Now going back to our offline conversion ratio of 30 percent we should be able to gain ten new clients out of that mix. The outcome should look like this: if we drive 3400 people to our website on a monthly basis with a 1-percent online conversion ratio (that’s a worst case), then we’re going to get at least 34 calls. Now, assuming that we’re able to convert at a 30-percent offline conversion ratio based on our previous history, now we have ten new clients that could potentially come into the mix.
Let Achieve Our Goal
This is how you actually establish a plan for your online advertisement. We now know how many people we need to attract to our website, so we can potentially achieve our goal. We also know how those people will get there. We have a worst case scenario, with which we’re going to do a couple of things.
The first thing we’re going to do is to track and check our results. The second is to work to increase this number if the worst case scenario is panning out. We’re going to do that by keeping the things that work and getting rid of the things that don’t work as we go along. You see, once we run AdWords for the first month, we can actually determine what our true online conversion may be and where to increase that number by making adjustments to our campaigns. Also, we can make adjustments to our sales process to increase our offline conversion ratio, and that may be something worth looking at, because ultimately it’s going to help us get better results. Our goal should now change to increasing our online and offline conversion ratios to get better results.
You see, now you know where you are. You also know where you’re trying to go, and you have a plan. In addition, you can determine what tools or networks you need to help you get to your ultimate goal, which is what we’ll discuss in our very next lesson.
Adwords Work Sheet Anyone?
Before you go, I want you to know that we have a really great work sheet for you, where all of this information is outlined. All you have to do is some simple calculations and you’re all set with this part of the plan. Simply click the link below this video, and we’ll deliver it to you right away absolutely free of charge. Now, in our next lesson we’re going to go over how to take this information and determine our budget. We will discuss how to drive costs down and make sure we can get a good ROI or return on investment out of this.
And by the end of this series, you’re going to be able to determine the route you should take to get to the top of Mt. Everest, meaning your business growth with AdWords.
One last thing. We have a team dedicated to review your marketing strategy with you and determine the best path for you to reach your destination. All you have to do is click the link below and fill out the short form, then we will contact you within 24 to 48 hours. Thank you so much for joining us!