Posted by admin on 24th February 2014

Digital Marketing based on Signup Quality

There are many options when it comes to ad channel selection. While I am certain that you already utilize some form of ad performance tracking, your current method falls short if it does not measure marketing ROI.

One of the most commonly used key performance indicators or KPI for search marketing is cost per conversion (CPC) or cost per acquisition (CPA).  Below is an example of a typical search marketing KPI.

Typical SEM platform  

           Conversion        Click        Cost/Click        Ad Spend        Cost/Conv

Kw1            5                    200            $2.50                $500                   $100

Kw2           10                  400            $1.25                 $500                   $50

 

In the example above, a typical search marketing platform measures cost per conversion. In this example, the data indicates that keyword2 performs better than keyword1 based on cost per conversion performance.

However, by factoring in the quality of signups from your campaign, the results are different. This is illustrated in the table below.

Varazo SEM platform

           Conversion        Qualified        Disqualified        Sales Win        Cost/Score

Kw1           5                          3                          2                             2                       $41

                                       Score= 6           Score=0              Score=6     

 

Kw2         10                         3                          7                                1                     $55

                                       Score=6             Score= 0             Score=3      

 

In the example above the quality of signup by status such as Qualified, Disqualified and Sales Win is factored into the performance analysis.  The conversion score reflects the quality of signup, and the keyword‘s performance is measured by the sum of the quality score.

With this approach keyword1 shows better performance with lower cost/score than keyword2 and it results in a very different max bid update than the bid update when this data is not available.

While the concept is simple, implementing this signup quality logic into your SEM account can be complicated. You’ll need to find a PPC bid management system and lead source tracking system where both leads and lead source are tracked.  These two systems will then need to be integrated so that signup quality can be added to the PPC management system to optimize keyword max bids.

Varazo is a SEM integration platform that now offers this solution through its existing ClickSweeper, PPC management software, and our newly released ConversionSweeper, lead source analytics. Together these two platforms provide a simple solution for digital marketers who want to improve signup quality and to accurately measure return on their digital advertising.

If you thought about it or have an experience in integrating these two systems, please share your thought or experience in the comments below.

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