Multitouch attribution has quickly become the newest buzzword within the marketing community. Advanced marketers understand the need for a multitouch platform and the importance of assigning weighted value to various sources.
But until an easy solution is developed and implemented, a lot of small businesses are left having to decode top of the funnel marketing activity and dig for results in their bottom line. Fortunately, with a little creativity, marketers that support small business owners can create systems to explain and measure their efforts to their clients.
Speaking a different language
Explaining your marketing efforts to your small business clients is complicated by the fact that business owners and marketers simply aren’t using the same data points. My clients are usually tied to the numbers they see in their profit and loss reports. But often there isn’t a direct line from top of the funnel marketing efforts down to the point of sale.
My small business clients don’t fully understand the value of an online conversion. But to me, this information is gold. So how do you explain marketing efforts to a client that uses a different measurement of success if you are speaking a different data language? And how do you prevent this language barrier from deterring the ROI of their marketing budget?
And when it comes time to show the ROI of marketing budgets, that language barrier is the point of failure.
More ‘splaining’ to do
Proving the value of a PPC campaign to my clients lies in teaching them how PPC works and impacts the customer lifecycle as a whole. PPC campaigns display ads to potential customers looking for solutions to their problems. These are highly qualified prospects and we are sending them directly to their website. It can be expensive, depending on budget, but PPC campaigns result in more qualified leads further down-stream.
When it comes to reporting, here is a good way to define your metrics to clients in order to bridge the language barrier.
Impressions: This number shows us the amount of times someone searched for an something with in a specific criteria, and an ad for your business displayed. This number could also be used as a very loose baseline for the amount of people your ad reached and the potential for how many people could have clicked on your ad.
Clicks: Think of this as the number of times people saw your ad, were intrigued by the content and decided to click on the ad to learn more about your business. You can also think of this as the number of times we drove someone directly to your website.
Click Through Rate: This metric is the number of people who clicked on your ads after seeing them. It is a simple calculation of Clicks/Impressions and can be a useful tool in measuring the success of your ads. It helps you understand how relevant your ads and keywords are to the people searching for your type of business online.
Cost per Click: This is the amount you pay every time someone clicks on your ad. This price is driven by the competitiveness of keywords you are using in your ads. For example, if you are bidding on the term, “Cleaning Service in Denver,” you might spend more than if you were to bid on the phrase, “Cleaning Service in DU,” a more specific phrase leads to hyper local searches and more qualified leads.
Conversions: Conversion is my favorite metric. At a very high level, it shows you how many people landed on your website and took action to learn more about your business. The best part is that you can define what conversions you want to measure.
Conversion Rate: This is simply the rate at which someone clicked on an ad and then took further action to learn more about your community. Maybe they took advantage of a free downloaded on your website, navigated to your testimonials page or submitted the contact us form. Either way, these actions are a step forward in the customer journey to making a purchase.