I Need Leads: Who Cares about E-Commerce?
Improper understanding of conversion rate gets us not only in ecommerce, but also in lead generation campaigns. It’s easy to fixate on the impact of conversion rates in generating sheer volume of leads, while losing sight of other important factors like lead quality and lead closing rates.
The standard spiel in paid search lead generation campaigns frequently involves use of a lead form on landing pages. There is no doubt that pages with simple lead forms work extremely well to increase lead quantity. But consider this: lead quantity at the expense of lead quality?
Each lead has an associated value that ultimately affects ROI. Lead quality suffers when a poorly targeted text ad leads visitors to a content-lacking landing page with a prominent lead form. While it’s tough to find a sweet spot between increasing lead volume and increasing lead quality, continuous testing is imperative to narrow the gap.
However, testing goes nowhere unless granular tracking solutions are available to measure (1) conversion rate, (2) lead quality percentage, and (3) lead signing/closing rates on particular keywords and/or landing pages. Know and use this data to develop future tests. If it’s proven that a simple lead form on a landing page with little content provides poor lead quality, then shift your attention elsewhere.
A deep understanding of this triad of factors for lead generation campaigns will help search engine marketing managers accurately measure test outcomes and benchmark results for future efforts.
Other Factors & Influencers
In today’s dynamic online marketing space, I realize what worked last week, may not provide results today. Due to the multitude of factors influencing success, isolating causes for success or failure can become a time consuming process for online marketers. But despite the time intensive nature of this process, we must endure it to avoid heading down the wrong path.
When facing these common conversion rate fluctuations, marketing professionals should consider these factors & influencers:
Landing page or text ad performance
– Factors to consider
– What’s the AOV, EPC, ROI, lead quality percentage, and traffic levels per page and text ad?
– Did your campaign positions in the search results change during your test?
– Did a new competitor enter the landscape and drive up cost per clicks?
– Did you give the test enough time considering your buying cycle? If your average consumer is in the buying process for 2 weeks before making a decision, then a 1 week test may not be sufficient.
Understand seasonality and external market conditions
– Gas prices going up?
– How’s the consumer price index?
– Did you launch your new campaign too early or too late?
Examine the performance of other marketing channels
– Did phone calls increase?
– Did visitors opt-in for email newsletters more readily?
– How were brick and mortar sales affected?
While conventional wisdom dictates the importance of conversion rates, as online marketers, we must dig deeper to uncover the key metrics that drive our clients’ success. Ultimately, the more control you have over each variable of a paid search campaign, the more effectively you will be able to deliver the maximum possible ROI to the client.