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Key performance indicators (KPIs) are essential to our industry. Without them, we are like a pilot without navigation; we don’t have any idea if what we are doing is getting us closer to our goal. They’re the barometers of achievement that show whether or not your client is making money or losing money.
KPIs are set according to your customer’s main goal (earnings, leads, etc.)). Nevertheless, not all of PPC campaign types get the same type of user; several attempts are made to target users that are willing to buy while others are made to target users who’ve never heard of your customer’s business before.
It goes on to conclude, then, that adjusting your KPIs based on the goal of a given campaign can be a much better barometer for achievement and bring more to the overall success of your PPC account and your customer’s company.
Utilizing the Marketing Funnel to Assign KPIs
The goal of this post is to give you a distinct method of assessing your campaigns so that you may do your task as a PPC strategist much better. To do this, I’m going to turn into the ever-changing marketing funnel that outlines an individual’s travel in the most basic of conditions:
The best of the funnel represents an individual who’s unaware of your customer’s company and the base of the funnel represents an individual that has converted. Therefore, a top funnel user is less likely to convert than a low funnel user. Easy yeah?
What you might not understand yet is that each one of these sections in the promotion funnel (read: all those user types) typically correspond with a PPC campaign type: branded search, non-branded investigation, difficult remarketing, soft remarketing, and also display. Your KPIs should not necessarily be uniform across every campaign type because the achievement of a given campaign depends on what type of user it’s acquiring.
Let’s go through every section of the funnel and learn exactly what KPIs you should be focusing on.
High Funnel User
User Level: Awareness
A top funnel user is simply becoming aware of your customer’s company and is not necessarily interested in what they have to sell. This type of user is not looking for anything related to your customer’s business.
Campaign Form: Screen
The only way this user goes from oblivious to aware is through a first point of contact outside search. This kind of user is obtained through banner advertisements or movie ad display campaigns (non-remarketing).
Emphasis: On-Site Usage Metrics
This user is not likely to convert their very first visit. If your account’s average price per purchase (avg. CPA) is $50, do not be surprised to see an avg. CPA 20 or even 30 times greater for these campaigns namely. You want this user to engage with the articles on your customer’s site so they become curious about what they have to sell. Therefore, achievement of these campaigns should be dependent on onsite usage metrics.
High Funnel Key Performance Indicators
- Bounce Rate
- Avg. Session Duration
- Pages per Homework
Mid Funnel User
User Amount: Interest
A mid funnel user knows of your customer’s company and is becoming more interested in their deal(s). They could be actively looking for related issues in a bid to learn more and/or see what offers competitors have.
Campaign Form: Non-Branded Research, Soft Remarketing
This type of user is typically acquired through lookup lookup campaigns, which contain terms that signify stated user is problem-aware and/or solution-aware. In addition, this user tends to convert nicely with soft remarketing campaigns. These campaigns offer you this user extra content to aid them down the funnel rather than a tough sell straight away.
Emphasis: New User Navigation Metrics, Assisted Conversion Rates
These users do tend to convert, but at lower prices than the account or website ordinary. When this is taken into consideration, these attempts can best be judged from brand new user conversion metrics; these more accurately reflect an mid funnel user. Furthermore, since these attempts can also be designed to receive a mid-range user to return to your customer’s website afterwards and convert just as a low funnel user, assisted conversion metrics may also be good at judging the success of these campaigns.
Mid Funnel Key Performance Indicators
- New User Conversion Volume
- New User Interface Conversion Rate
- New User Avg. CPA
- New User ROAS (when e-commerce)
- Assisted Conversion Volume
- Assisted Conversion : Last-Click Conversion Ratio
Low Funnel User
User Level: Desire
A low funnel user is well aware of your customer’s company, possibly looking for your client especially, and is as willing to convert as they’ll actually be.
Campaign Form: Branded Search, Hard Remarketing
This type of user is typically acquired through branded search campaigns; they are more likely to look for a specific brand and also convert. Likewise, they are more likely to be ready for a difficult sell and convert from a remarketing ad which is supplying them a specific product or service.
Emphasis: Returning User Conversion Rates
These users may convert at greater prices than any other type of user. Therefore, focusing on returning user conversion metrics, especially on a final click model, will be the best method to gauge the achievement of these campaigns.
Low Funnel Key Performance Indicators
- Returning User Navigation Volume
- Returning User Conversion Rate
- Returning User Avg. CPA
- Returning User ROAS (if e-commerce)
Use Campaign Labels
Ensuring each campaign you’re running fits into this methodology can be somewhat cumbersome at first. However, after your campaign arrangement is installed appropriately, it’s simple to filter campaigns for user type by employing campaign labels. These labels let you analyze information based on what portion of their marketing funnel you’re focused on. Likewise, filtering campaigns utilizing these labels will make using distinct sets of KPIs relatively simple and organized.
A campaign could only be effective at attaining your customer’s end target (i.e. more revenue) as the type of user it accelerates. You may optimize a fresh consciousness display campaign till there’s nothing left to adjust; it won’t ever convert in addition to a branded search campaign because it’s more likely to obtain a high funnel user.
Remember: Each single user moves through the promotion funnel. Understanding that travel and understanding where all your campaigns fit into the marketing funnel is critical to running the most effective and productive PPC account possible.