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.