Every business can use more leads. After all, that is what SEO is all about, getting more people to click onto your site from Search Engine Results. But what about Pay Per Click (PPC)? If you want more leads, should you just increase your PPC budget and buy more clicks, or, should you optimize your Landing Page so that you increase conversions? Good question. Let’s explore the implications of doing both, and determine which strategy will do more to enhance your bottom line.
Buying More Leads With The Same Crappy Conversion Rate
Buying more leads is pretty straight forward. If you have a weekly budget of $500, and each click costs you $1, then 500 people or leads will click through to your Landing Page. If you have a conversion rate of 2%, then 10 people will convert and buy your product, sign up for your newsletter, or whatever the conversion is for your page. It follows that if you want to increase your conversions to 15 per week, then based on your current conversion rate, you would need to spend $750 per week to get 750 leads. For 20 conversions it would be $1,000 per week, for 40 conversions $2,000 per week, and so on.
So is buying more leads the best way to increase your customer base? Well, if your company operates like the Federal Government, I guess just throwing money at your marketing is one way to go about it. But wouldn’t it make more sense to improve your bang for the buck? In other words, increase your conversion rate on your Landing Page so that the leads you are already buying are more productive? Let’s take a look at another scenario that can get us to your lead target without busting your budget.
Increasing Your Conversion Rate for Higher ROI
Now, let’s take that same budget of $500 and invest in a little bit of A/B or Split Testing. As you may recall from a previous article, A/B Testing tests the conversion rate of your current Landing Page against a “challenger” that differs from your current Landing Page. For example, the challenger may be exactly the same as your current page except for the Headline. If the challenger performs better than your current page, making sure that the results are credible, then you would replace your current page with the challenger and that would become your new Landing Page. Rinse and Repeat. Never stop testing should be your mantra, and even small improvements in conversion can make a big difference to your bottom line.
So out of that $500 budget, we will invest $100 of our $500 budget to run some Split Testing. The first week’s results are pretty impressive. Of the 400 leads purchased with the remaining $400, half go to the current Landing Page and convert at 2%, which are 4 conversions. But the challenger is a real powerhouse, and the 200 leads that go to that page convert at 3.5%, or 7 conversions. Assuming that the results are credible, for the first week we have increased our conversions by 1 or 10%, and we make the challenger the new Landing Page for week 2.
Week 2 Kicks Butt
Week 2 uses the same scenario as Week 1, and 200 leads go to the new Landing Page, with a conversion rate of 3.5%, or 7 conversions. But the challenger again kicks butt, and delivers a 4% conversion rate, or 8 leads. Now we have generated 15 leads during Week 2 with the current budget of $500, not $750 if we had just bought more leads. And even if we stopped testing in Week 3 and just poured the entire $500 into buying leads for the newest Landing Page with a 4% conversion rate, 20 conversions would be acquired for half the cost of just buying more leads with the original page ($1,000 = 1000 leads @ old conversion rate of 2% = 20 conversions).
But the point is that we wouldn’t stop testing. We would continually try to improve the conversion rate of the Landing Page until there was nothing left to test. And then we would brainstorm and come up with some more innovative ideas. Video presentation, double opt-in, streaming video background, the list goes on and on. Throwing money at your PPC campaign is not the way to increase your bottom line. Improving your conversion rate will fill your company coffers without breaking your marketing budget.
If you are tired of throwing money at your marketing campaign, contact Moore Marketing Systems to discuss how we can help you reach your goals the smart way, through tested and results oriented Internet Marketing. Schedule a free 30 minute consultation to get the ball rolling.