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  • Hello everybody

  • Welcome today's webinar. My name is Kauri Voss. I'm marketing event manager at Logical Position and

  • Sitting next to me is Lindsey Stier the general manager at Logical Position

  • And in that window over there is Carly Horn and I'll let you two introduce yourselves perfect. Hey everybody

  • I'm Lindsey Stier, as Kauri mentioned. I'm the general manager for Logical Position's headquarter office here in Portland, Oregon

  • Basically Logical Position is an SEM company. We specialize in search engine optimization,

  • PPC management, social, and we particularly have an emphasis with e-commerce websites,

  • we're Google premier partner, an elite being elite ads partner, and

  • have a lot of different industry partnerships with e-commerce sites to help provide the best results we can for our clients.

  • I'm Carly horn. I'm the VP of partnerships for North America for Loyalty Lion.

  • I'm in Nashville, Tennessee, and we have our headquarters in London

  • And so Loyalty Lion and we provide fast growth ecommerce stores with a fully customizable

  • Loyalty program that's designed to increase customer engagement retention and lifetime value

  • Great

  • So

  • Today we're going to go over some best practices. We're gonna turn our webcams off first.

  • We're going to

  • Go over some best practices to bring in more customers and keep them coming back. We'll go over

  • estimating return and AdWords structuring your campaigns with non-brand and brand intent.

  • Calculating lifetime value and common issues to avoid in your PPC

  • Strategy. And then Carly will walk us through building that customer loyalty

  • through post-purchase strategies that move folks from at risk to repeat customers and

  • Just as a reminder you all have a little sidebar on your screen

  • so if you have any questions, please type it in there and we will address those at the end and

  • We will be recording this webinar

  • So if you miss anything, don't worry

  • We'll be sending out an email with a link to the recording contact info if you need a one-on-one follow-up

  • And with that take it away Lindsey

  • Perfect. Thanks so much, Kauri

  • So, I'm the first thing that I really wanted to address in

  • this webinar is just kind of PPC viability for different types of companies.

  • I'm sure that some of you all have

  • Previously worked with PPC in the past maybe had a negative experience with it or hopefully a positive experience.

  • The reason why I'm gonna kind of focus on that in terms of new client acquisition is

  • Just like I mentioned we work in SEO we work in web design,

  • we work in social, but for clients starting out. We really do use PPC as the starting point.

  • The reason being is because it is instantaneous, it's nimble, it's customizable,

  • and what we find is that it really is the best way to aggregate data for kind of new advertisers as well as existing advertisers

  • So what I wanted to talk about first are kind of three basic things that you really need to know

  • about your company and your product in order to be able to

  • You know identify PPC's viability. So the first of those is going to be organic conversion rate

  • For those of you guys who maybe aren't as familiar about where to find that you can go to google analytics you can go to

  • Conversions and go to e-commerce tracking and I hope that you all have that set up

  • Then with an e-commerce tracking you can look at the organic conversion rate

  • The reason why we kind of like to start with this is that sometimes PPC conversion rates are higher

  • Sometimes they're lower but the benefit with the PPC advertising is that we can target specific types of products so often we will see that

  • PPC conversion rates are pretty in line with organic if you don't have information on your website's conversion rate

  • Maybe you don't have your transaction goals set up. You don't have ecommerce tracking set up

  • You can kind of ballpark for the sake of the equations that we're gonna work through

  • I'd recommend maybe starting with a ballpark between 1.5% to 2.5%

  • Sometimes again, it's much much higher. Sometimes it's much lower

  • It just kind of depends the next thing that's important to you know have knowledge of is your average order value

  • Again, you can actually find this information in the same place in Google Analytics as you can see on the screenshot

  • If you don't have that available in google analytics, either you can Ballpark it as well

  • I'm sure you know what sort of price point your products fall into.

  • And then the third thing that's really important for estimating your PPC viability is your product margin information

  • So, you know usually retailers are going to be somewhere around

  • 35% maybe less depending on how many times the margin kind of gets stepped on through the supply chain process.

  • Manufacturers and brands are typically going to be higher 50% or sometimes even more just depending again on how close you are to the

  • You know origination of a product

  • So once you have kind of those three different points of information the next place that I always like to go to

  • You know kind of help assess viability is going to be the Google Adwords Keyword planner

  • Some of you guys might be familiar with this tool

  • It's a free tool provided by Google that shows you things like average monthly searches level of competition of PPC

  • Advertisers on a particular term as well as estimates on cost per click

  • The thing to know is that this is all just kind of information. It's not going to you know necessarily be a hundred percent accurate

  • So what I like to have my clients do is you know

  • Basically pick out different keywords that are going to be related to product categories. So let's say you're an apparel retailer. Maybe that's something like

  • north face jackets

  • You know burton hoodies things like that

  • And then you can kind of get together just a small list of things that represent your different products and categories

  • And then what you want to do is find kind of an average CPC across those different search terms

  • Really what this exercises is

  • You know figuring out how much traffic you can get to your website

  • Within your particular budget if we're talking about e-commerce sites

  • We recommend a budget no smaller than a thousand dollars per month for pay-per-click

  • If you are in a hyper competitive vertical it's probably going to need to be much more than that

  • But if you have your budget and then you can look at your average CPC

  • Then we can basically move forward to the next step which is how to calculate the theoretical amount of traffic to your site within PPC

  • So again, you've got your monthly budget

  • You've got your CPC and what you're going to do is divide the budget by CP

  • see and that's going to get you the number of

  • Potential site visitors that you can aggregate within that budget. So this is actually a screenshot from a client account

  • This was you know, what has happened

  • So they spent six thousand seven hundred and fifty three dollars at an average CPC of seventy six cents

  • And they were able to bring in eighty nine hundred

  • website visitors

  • so

  • You know look at your budget look at the CPC

  • Figure out how many people you can bring to the site within those kind of different constraints

  • So once you have the number of theoretical site visitors

  • You can drum up through PPC

  • then what you want to do is look at that conversion rate to figure out the number of

  • Transactions that you can generate through this new acquisition channel. Again, I used a client account as an example

  • So we have 8900 site visitors

  • they happen to have a conversion rate at 4.46% and

  • What that was able to yield was 397

  • transactions within their budget with the CPC constraints.

  • So this is where again average order value comes into play, if you know how many

  • Transactions you're getting to the website and you know what the average order value of those transactions

  • Are you can calculate what your gross revenue, you know, theoretically would be running this acquisition channel.

  • so

  • You know in this example at one hundred and thirty seven dollar AOV for average order value

  • That yielded $54,435 in gross

  • revenue

  • So now there is one more step because as we all know gross revenue does not equal net

  • Profit and that's where your margins gonna come into play

  • so if we have the revenue that you could theoretically

  • Aggregate through the channel and then you know your margin you can multiply those things together to figure out what the net profit would be

  • And then you want to minus out the cost of the actual advertising. So in this case the

  • Advertiser again was able to aggregate $54,000 in revenue and then we take out

  • what they're paying and you know cogs basically and then also

  • Subtracting what they paid to acquire that traffic to their website and that resulted in the net profit of $20,736

  • So what I would really encourage you all to do is play around with these numbers play around with different budgets play around with different

  • conversion rates and really figure out what your worst case scenario is gonna be your best case scenario is going to be and your

  • Breakeven and that kind of gives you a nice if you will zone of you know

  • Kind of possible profitability that you can then use the strategies and Adwords to orient around

  • So

  • Lifetime value. Um, the reason I wanted to talk about this Carly is gonna go a lot more in depth into lifetime value

  • but the reason why we're talking about it in terms of new acquisition is

  • That lifetime value is incredibly important for setting those goals on what you're willing to pay for a new

  • client a new client acquisition

  • so, um

  • Some people a lot of the clients that I have spoken with at least have struggled with where to find information

  • about the lifetime value of their clients and I don't think any of these data sources are necessarily a

  • Silver bullet about exactly what your lifetime value is

  • But some of it common places that we'll look towards to find information on that subject is going to be a client CRM

  • So for example Salesforce HubSpot, they do a very good job of being able to run a report on you know

  • particular person's lifetime value

  • Also your different content management systems have that built in Shopify does a pretty good job

  • they have some reports you can run payment processors are also a great place to go because

  • You know people are putting in their credit card information and that can also be mapped and then of course loyalty lion

  • And other loyalty programs typically provide this information seeing is that's the value that they're bringing to their clients

  • So just a kind of quick side note on the equation for lifetime value

  • You know what that's going to look like is your average order value X the number of repeat sales

  • X your retention and that's going to equal lifetime. So, um, you know,

  • You can kind of look at this over different time frames and things like that

  • but if you have a really high repeat rate, that can definitely afford more than

  • Opportunity to take a loss up front in order to drive higher revenue numbers on the back end

  • we actually had a client that we worked with who is in the gift industry if you will so gift baskets things like that and

  • Based on their lifetime value it made the most sense for them to lose a substantial amount of money up front on new client acquisition

  • Because their lifetime revenue was so high once they got that person in the door

  • So it is going to change the orientation of you know

  • How you're viewing your account how you're maneuvering your account and your spend between brand and non brand when you have that

  • Understanding of what a new client really does mean to you

  • So I wanted to talk a little bit about brand and non brand and some of the

  • Differences between the two and again how we orient strategy

  • Talking specifically about brand. There are typically two schools of thought when it comes to

  • PPC branded advertising so that's advertising on your own branded term. So for example logical position

  • Advertising on the search term logical position. So one school of thought is don't do it. It's traffic

  • You're gonna get organically anyway, why would you pay for that?

  • the other school of thought is that you should absolutely do it because there are you know, a lot of kind of intangibles and

  • Tangibles that come with it

  • We're definitely the latter so we actually do the PPC for the Dallas Cowboys and you know

  • We had had some conversations back and forth about if we should or should not run brand

  • So what that actually did was it had us?

  • we decided to create some blackout tests and some different markets to see what the effect was of when we were running brand versus when

  • We were not running brand and in the markets where we weren't running brand we actually saw a 10% drop in revenue

  • So that means that that's revenue that obviously was being lost to other competitors or other sources and things of that nature

  • so

  • um now if we're gonna talk about the differences between running on your brand and your non brand

  • Non brand is going to be obviously things that don't include your particular

  • Branded terms. So for example if I am an apparel retailer

  • It's going to be kind of those new acquisition type searches

  • Somebody who's looking for sand North Face down jacket or somebody who's looking for a pair of Nike shoes or whatever. It might be

  • Non brand is always going to be

  • More costly than brand just because you don't own the terms and they're more competitive

  • However, non brand is incredibly profitable because like we mentioned it is typically new client acquisition

  • So those are people you can get into the door to continue purchasing your product and nurture over time

  • So, generally speaking. You should absolutely be running both

  • But if we have clients that are budget constraints

  • We will typically opt for brand first to generate the most amount of revenue to then move into the non brand category

  • So just a side note on running on brand. This is just an example

  • I wanted to show everybody of Hunter boots, you guys may or may not be familiar with them,

  • But they are a brand of rain boots.

  • They do sell direct through their website and they do run quite a bit of pay-per-click advertising in the non brand arena.

  • But this was a search I conducted on their branded term and you'll notice that they're nowhere on the page.

  • Zappos is their Moose Jaw Shopbop shoes.com

  • So these are you know, four different places that are gonna be getting that revenue that hunter boots is now not getting

  • by not employing this strategy.

  • Talking about profitable PPC and where to start I already kind of addressed this first point here

  • But if I have a client who comes to me and says Lindsey I've been running pay-per-click, it hasn't been working

  • You know, what should we do? This is the typical kind of advice that I would give them and that is number one

  • Let's start on the Google search Network on your branded terms. So again in that example previously hunter boots was not doing that

  • We're gonna start here because it's low-hanging fruit at a very low cost with very high revenue.

  • These are people who are already familiar with your brand

  • They are actively searching for your brand

  • So you should be there as a top option so that they don't go to say Target or some other, you know

  • potential retailer.

  • The next area that we would focus on after we've

  • maximized brand

  • Potential is going to be Google Shopping and most of you guys are going to be very familiar with this network as you can see

  • over here in this little screenshot

  • It's where you have not only the image the add the description of the product

  • But you also have the cost.

  • So it's a great way to pre-qualify traffic before they ever even click on your ad

  • So these typically have really high conversion rates and they're usually a pretty low cost and just kind of a side note

  • I'm a fun fact about Google shopping is that eighty percent of the initial product clicks

  • actually go in and purchase a different product from the store. And

  • That's something that we can actually track because of the way that we set up our shopping accounts

  • So it's just a really interesting information to see what gets a lot of click viability. But then what ultimately ends up in that purchase

  • So the third area that we would move into

  • based again on return numbers is going to be what we call our

  • RLSA which stands for remarketing lists for search and shopping ads you can do it for search or for shopping

  • A lot of people are familiar with remarketing on the Display Network, which are graphic ads that follow you around two different websites

  • What's different about these types of campaigns? Is that in our LSA?

  • You can actually target people who have been to your website through the search network or through the Shopping Network. So again if you have

  • a handful of people that have abandoned the shopping cart

  • Those are people that we can re-engage on these high intent networks to pull back to the website

  • We also like to segment out our remarketing into kind of different buckets

  • so for instance

  • One of those is going to be duration.

  • So we can take

  • non-converters and we can message them within the first 24 hours in a very specific way and

  • That might look a lot different than somebody who say abandon the shopping cart a month ago

  • they might require a different type of messaging to re-engage and

  • Lastly where we would go would be the non brand Google search

  • specific to long-tailed search terms

  • so again

  • I've had a client that was in a very competitive industry children's apparel and when we went in and looked at their account

  • Most of what they were doing in their non brand acquisition was these very kind of general?

  • categorical type searches like children's apparel apparel for children

  • So what we did is we came in and we kind of inverted that strategy and we went after much more specific types

  • product searches that have a way higher likelihood of

  • Converting in the account if you think about every time you're paying for a click on something like children's apparel