HND Solution

PPC Experiment

Google Ads, PPC, PPC Experiment

What Caused the 460% Spike in Client CAC?

What Caused the 460% Spike in Client CAC? This blog isn’t your typical digital marketing success fairy tail story where businesses boast about skyrocketing profits. Nope, this one’s a bit different, and believe us, it’s worth the read. Now, you might be wondering why we’re bragging about increasing a client’s CAC by a whopping 460.63%. Why on earth would we do that, and why are we talking about it here? Take a deep breath and bear with us. We’ll explain everything! Yay! We gotta a new client!! About a year ago, we welcomed a new B2C client into our fold. Their Google ads were previously managed by a renowned agency in the Digital Marketing industry, which we’ll refer to as Agency X for the sake of this post. Our client, in the B2C sector, was looking for inquiries from ready-to-buy customers. Despite Agency X’s tenure managing their Google Ads account, the founder wasn’t satisfied with the results. Through a referral from a friend, they discovered our expertise in the industry, backed by seven years of solid experience. Naturally, the decision to collaborate was a no-brainer for the client. The Before and After: Agency X vs. HND Solution’s Approach Let’s dive into the tale of two strategies: what Agency X was up to before we stepped in and how our approach turned the tide for our new client’s Google Ads campaign. Let’s dive into how Agency X operated. Agency X used most of the types of the campaigns available in Google Ads, they ran different types of campaigns, like Performance Max, Search, Display, and Smart campaigns. A big chunk, about 41%, budget was allocated to Performance Max.On Google’s dashboard, things looked okay with a CPC of $2.60 and a seemingly fair CAC of $29.25. Our Strategy at HND Solutions When we took over, we didn’t waste any time. First, we hit hard on Performance Max, pausing all campaigns created by Agency X. We had a different perspective on lead generation with Pmax, which we’ll discuss later in this post. As for the Search campaign, it had potential, but there was room for improvement. We made some tweaks to optimize it and kept it running to maintain the lead flow. Meanwhile, we swiftly moved on to creating new campaigns targeting different locations and keywords based on our industry experience. Recognizing the need for a better landing page, we decided to scrap the old one and design a new, more effective page. After thorough research and planning, we implemented this new page across all campaigns. To ensure comprehensive lead tracking, we implemented our inbuilt tracking system. This system allows us to track the progress of leads from start to finish, providing insights into lead quality and conversion rates. In terms of budget allocation, we allocated about 80% of the budget to Google Ads and the remaining 20% to Facebook ads, optimizing our resources for maximum impact. A Results Comparison: Agency X VS HND Solutions In our analysis of the performance shift between Agency X and HND Solutions, the numbers speak volumes. Under HND ‘s management our strategies led to a remarkable shift in the metrics, the Cost Per Click (CPC) increased by a staggering 255.77%, accompanied by a parallel surge in overall cost, soaring by 256.65%. However, the picture isn’t all rosy; the number of leads plummeted by 36.38%. The most alarming statistic, though, is the Cost of conversion (CAC), which skyrocketed by 460.63%. This significant spike in CAC, due to surge in CPC and overall cost, contributed to a notable reduction in leads. For a closer look at the numbers, refer to the comparison table below! # CPC Cost Leads CAC Agency X $2.60 $51,453.99 1759 $29.25 HND Solutions $9.25 $1,83,509.30 1119 $163.99 Change 256% ↑ 257% ↑ -36% ↓ 461% ↑ Now, you might be wondering why we chose to increase our overall expenses despite these seemingly negative outcomes. Hold your horses and read on to find out the reason behind our strategy. Win or Lose? Looking at the numbers above, you might assume we took a beating and lost the project. But let me set the record straight: the client was thrilled with our results. It wasn’t about throwing money away; it was about putting faith in our strategy and giving us the time to execute it effectively, delivering tangible returns. So, what changed after we launched all our campaigns? First and foremost, overall sales saw a significant uptick. Despite the decrease in the number of leads, the sales ratio surged. This was because the leads we generated were of higher quality, leading to more conversions. Interestingly, while the cost of leads skyrocketed, the cost per sale actually decreased. This means that although each lead came at a higher price, the efficiency of our campaigns resulted in lower costs for acquiring customers. In essence, it was a win-win situation, where our client saw tangible growth in their business while maintaining a more cost-effective approach to customer acquisition. Additionally, our strategy had a ripple effect on their sales team morale. With a majority of the leads we delivered being serious consumers actively seeking to make a purchase, the sales team found themselves in high spirits. They noticed a significant decrease in the number of calls they had to make per day, yet their sales numbers were on the rise. What was wrong? In dissecting the situation, we first analyzed the metrics to pinpoint areas of concern. The staggering 36.38% reduction in leads immediately caught our attention. However, a deeper examination revealed that most of these leads were of poor quality, essentially wasted opportunities. Lead-to-Acquisition Ratio: Previously, it took an average of 25 leads to secure a single sale, indicating a worst quality leads. By refining our approach to prioritize quality over quantity, we successfully improved the lead-to-acquisition ratio to 1 sale per 3 leads, a considerable enhancement for the client’s sales team. Cost Analysis: # Cost Leads Sales Cost Per Sale Agency X $51,454 1759 70 $731.30 HND Solutions $1,83,509

Google Ads, PPC, PPC Experiment

How We Achieved an almost 98% Conversion Rate on Google Ads

How We Achieved an almost 98% Conversion Rate on Google Ads Achieving a high conversion rate is a major challenge for businesses using Google Ads PPC. According to industry standards, the average conversion rate is around 2.35% (source: WordStream). However, we recently performed an experiment on a client campaign focused solely on achieving a high conversion rate, and the results were truly astonishing. Through careful planning and execution, we were able to achieve a conversion rate of almost 98%. This blog post will take you through the step-by-step process we followed to achieve this incredible result. From keyword research to landing page design and A/B testing, we’ll share our insights and best practices for maximizing your conversion rate and driving more business success. So let’s get started! Step 1: Broad Keyword Research The first step towards achieving a high conversion rate in our Google Ads PPC campaign was to conduct a broad keyword research approach. We wanted to ensure that we started with a wide range of relevant keywords, to generate enough search terms to choose from. To accomplish this, we selected the most relevant 2 phrase keywords that were most relevant to our client’s business. This approach helped us identify a wide range of potential keyword variations that could be used in our search campaigns. We made sure that each keyword we selected had a minimum search volume of 300+. This ensured that we were able to get enough traffic share and reach a larger audience through our campaign. Overall, our approach to broad keyword research allowed us to select relevant and high volume keywords that can give us lot of search terms, laying a strong foundation for the rest of our campaign. Step 2: Landing Page Design and A/B Testing For the second step in our Google Ads PPC campaign, we worked with the client’s experienced design team to create two variations of a landing page to test which one would result in the best response. To keep the landing page simple and not overwhelm users with too much information, we opted for minimal content and a simple design. The key differences between the two designs were in the H1 headings, CTAs, design approach, colours, and CTA placements. We paid close attention to the first fold of the landing page, where we clearly highlighted our unique selling points, offer, and how quickly users could get in touch with us or request a call back to discuss their requirements. One effective strategy we found was to clearly mention “get a call within 5 minutes” as a CTA on one of the landing pages. This helped to increase the conversion rate and generate more leads for the client. Through A/B testing, we were able to identify the landing page design that worked best and implement it in the campaign moving forward. Step 3: Google Ads Campaign Optimization and Effective Use of Budget For the 3rd part of our campaign, we focused on campaign optimization and effective use of our budget. To start, we ran our ads with a minimum budget until we hit the first 100 conversions, before conducting basic campaign optimization. Initially, we started with low daily spends to ensure we were not spending too much until we were confident we were getting quality traffic. We paid close attention to the search term report to ensure traffic was mostly relevant. We had already applied a strong negative keyword list before launching the campaign, but we also closely monitored the search term report for both positive and negative terms. Next, we separated positive search terms into different campaigns based on their performance, with one campaign for high CPC and expensive leads, and another for comparatively lower CPC. We also paused underperforming keywords and made changes to improve the conversion rate. This particular action helped us achieve two things: Control over budget – pausing non or underperforming keywords saved us a lot of money, which we used on our best keyword set. Better budget control for high competition and CPC keywords – To have better control over our budget for high competition and CPC keywords, we separated them into a different campaign. This step was necessary to avoid overspending on expensive leads and ensure that our high-performing keywords received an adequate budget for better lead and conversion rates. We also analyzed and made improvements to our ads to ensure they were as effective as our competitors. After all of these optimizations, we continued to run the campaign to generate 100 more leads, bringing our total to over 200, before taking major action on further optimization. Step 4: Major detailed analysis of keywords and search terms For the next step, we conducted a major detailed analysis of our keywords and search terms. After paying close attention to all the granular details and conducting basic campaign optimization, we decided to move forward with our final optimization before making any major decisions on campaign structure. We analyzed the data from the start of our campaign to the present date and created a list of the keywords and locations that had delivered the highest conversions. Additionally, we analyzed at what time and day we were getting the maximum number of leads. This analysis helped us to clearly understand where our most leads were coming from, and we had a clear picture of where we needed to focus our efforts. Step 5: Putting Every Learning into Action After carefully analyzing all the data, we reached the final step in optimizing our campaign. With the list of our best-performing keywords, we created two additional campaigns, one with phrase match keywords and another with exact match type. Although we could have created ad groups within the same campaign, we needed better control over our spend, so we decided to create new campaigns. For these new campaigns, we added only the best-performing locations and set them to run during the best days and hours. We used the same ad copies and campaign settings as the original campaign, but the

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