So Troy and I had a long, healthy discussion recently about what was better: a higher conversion rate, or a lower cost per conversion.  This stemmed off an optimization we did for a client in Google AdWords, and we basically had to pick which direction we wanted to go.

The choice may seem obvious; “well, of course I want more conversions.” But what if those conversions were costing you nearly double?  Let me illustrate:

Looking at two different types of PPC campaign strategies, we can see that Option B has 3 times as many clicks as Option A at only a 50% increase in cost per click, but a whopping 4.5 times the campaign cost.  Option B will likely scoop up more of the garbage clicks since it experiences a lower conversion rate.  So the questions remains:

“Do you want 2.5 times more conversions at 4.5 times the cost, and 2 times cost per conversion?”

I don’t think there is a no-brainer answer for this, but let me go back to our earlier blog post about cost per aquisition.  We need to understand what we are willing to spend in order to acquire a new cusotmer.  If that answer is $50, then perhaps Option B is fine, but if the answer is $25, then Option B may not be fine (A more complex answer to this exists if we actually look at the lifetime value of the customer, but for now, let’s just talk about cost per acquisition).  Option A seems to be more efficient on the surface than Option B, but then let’s also remember a previous post on how we can compare two compaigns side-by-side and evaluate them based on a Value-to-Spend Ratio.

Which option would you recommend for your client?

What’s Better: More Conversions, or Less Conversion Cost? is a post from Pear Analytics, an SEO tools and software company.

So Troy and I had a long, healthy discussion recently about what was better: a higher conversion rate, or a lower cost per conversion.  This stemmed off an optimization we did for a client in Google AdWords, and we basically had to pick which direction we wanted to go.

The choice may seem obvious; “well, of course I want more conversions.” But what if those conversions were costing you nearly double?  Let me illustrate:

Looking at two different types of PPC campaign strategies, we can see that Option B has 3 times as many clicks as Option A at only a 50% increase in cost per click, but a whopping 4.5 times the campaign cost.  Option B will likely scoop up more of the garbage clicks since it experiences a lower conversion rate.  So the questions remains:

“Do you want 2.5 times more conversions at 4.5 times the cost, and 2 times cost per conversion?”

I don’t think there is a no-brainer answer for this, but let me go back to our earlier blog post about cost per aquisition.  We need to understand what we are willing to spend in order to acquire a new cusotmer.  If that answer is $50, then perhaps Option B is fine, but if the answer is $25, then Option B may not be fine (A more complex answer to this exists if we actually look at the lifetime value of the customer, but for now, let’s just talk about cost per acquisition).  Option A seems to be more efficient on the surface than Option B, but then let’s also remember a previous post on how we can compare two compaigns side-by-side and evaluate them based on a Value-to-Spend Ratio.

Which option would you recommend for your client?

What's Better: More Conversions, or Less Conversion Cost? is a post from Pear Analytics, an SEO tools and software company.

When you are spending money on pay-per-click advertising, or even search engine optimization, it’s nice to see people converting, or the act of getting the visitor to do what you want. After all, you are paying for the traffic, so wouldn’t it be prudent of you to give them what they are ultimately looking for? What if you went into the Dollar Store and everything was $3? You would be very disappointed, right? You would turn around and walk right out!

So let’s use an example. Let’s say I am interested in getting back in the gym, so I do a search on Google and find this::

Awesome!  I totally need to get back into shape, so I am digging this 50% off enrollment, especially when enrollment is probably $150 or more.

So after you click on the link above, it takes you to the following landing page:

Wait a minute….where’s the stuff about the 50% off enrollment?  I don’t see it….do I have to sign up first?  Do I have to call, or give a promo code?  Now the potential customer has a bunch of questions, and so they are likely to “bounce” from this page given too many unknowns.   Not surprisingly, this happens all too frequently.

But let’s say I do stay on the page. What is it they want me to do? Better yet, if I am Spectrum Clubs, what do I want you to do? I would like you to probably a) fill out a form; b) call me; or c) stop into one of our clubs. Tracking wise, the easiest thing to track would be the form submission, then the phone number, and lastly, the visit to the club. Let’s say I’m looking for a form to fill out so someone can contact me later.

The problem is that this page has 8 different things for me to click on – but only 1 of them will take me to the form. So, after I’ve paid $2 to get you here, I’m going to challenge you to a game of Roulette? There is a 1 in 8 chance now for the visitor to even click on the right button, and even less of a chance to get them to fill out the form and submit it. This reduces conversion, and increased cost per acquisition.

So, let’s look at a few pointers for good landing page design which is sure to increase your conversion rates:

1. The page should have content related to the ad clicked on. This will increase your Quality Score and will ultimately allow you higher ranks for lower bid rates.
2. Eliminate the distractions on the page that will prevent the visitor from doing what you want them to. Avoid using templates of the main site with all of the usual navigational elements.
3. If what you want is for the user to fill out a form, put the form on the landing page. Don’t make the visitor click again to contact you – it will automatically reduce your conversion rates simply because not everyone will make that second click.
4. Advanced Users – utilize dynamic keyword insertion to increase relevancy on the page. Or, if you have multiple products or services, highlight the visitor’s interest based on their original search query.

Happy landing page designing!  Monitor and test often.

The Importance of Good Landing Page Design is a post from Pear Analytics, an SEO tools and software company.