[AdWords Case Study] 33% Reduction in Cost Per Lead Using the Kaizen Approach

In today’s article, learn how we used the Kaizen approach of continual improvement to help our client reduce the cost-per-lead by 33%.

Kaizen is a Japanese word for continuous improvement. Ever since I studied Kaizen in a college Operations class (specifically how Kaizen has been a competitive advantage for Toyota), I've tried to apply the concept to different areas of my life. And looking back on recent successes, I've discovered that they were all the result of this idea of continuous improvement, or Kaizen. In our world of flashy marketing tactics like Twitter, Snapchat, mobile apps, Facebook messenger, and [insert the new latest and greatest tactic here], it's important to remember that strong marketing performance does not magically happen overnight. It's almost always the result of months and even years of, you guessed it, continuous improvement. With this in mind, I'm going to share a Google AdWords case study that exemplifies the Kaizen approach to AdWords optimization. I'm not going to share "the one secret that reduced our cost per lead by 36%." I'm also not going to share "the one trick." That's because there is no one secret or one trick... The reality with Google AdWords is that success is built on continuous improvement, month after month, and year after year. Let's dive in to the details so you can see this in action...

The Background Our client in this case study is a dentist in Georgia. When we started working together, our client had been advertising himself, but with no conversion tracking. That means he didn't really know if the ads were working or not... And even if the ads were miraculously working, he had no way to improve the ROI without conversion tracking. So guess what we did first? That's right, we set up conversion tracking. Since this is a dentist, the majority of the leads come from phone calls so we installed phone call tracking in addition to webform tracking on the website contact forms. Think of conversion tracking like a required course in college. In order to graduate, you have to complete the required courses. In order to optimize a Google AdWords campaign, you have to complete the conversion tracking setup. Of course, setting up conversion tracking does nothing unless you actually use the data to improve your campaigns. That brings us to our Kaizen process of AdWords optimization... Our Kaizen Process I'm calling this the Kaizen process because over the past 2 years we didn't just focus on one tactic; We focused on continuous improvement in all areas of the campaign. It's impossible to put your finger on the one or two activities that made all the difference because with optimizing AdWords campaigns you're dealing with a moving target. One day you need to adjust bids, while the next day you need to improve ad copy. So what exactly did we do? Below, in no particular order, are what I believe are the 5 most important edits we made that led to a 33% reduction in cost per lead. 1. Ad Schedule Optimization When you think of ad scheduling, you probably think of running ads during office hours. Or maybe turning ads off during holidays. Sure, that can make sense, but I'm specifically talking about ad schedule optimization here. With ad schedule optimization, we're looking at the conversion data for days of the week and times of day. There are reports in AdWords that will tell you which days of the week give you the lowest and highest cost per lead. There are also reports that tell you which times of the day give you the lowest and highest cost per lead. As you collect data, you can use this to refine your ad scheduling and adjust your bids so you're maximizing your budget during the best times. 2. Device Optimization This one is pretty straight forward, yet it's often overlooked in AdWords campaigns. There are reports in AdWords that will tell you how your ads are performing across different devices - Computers, Tablets, and Mobile. When you run those reports you will likely see a big discrepancy in performance across devices. This is especially true if you do not have a mobile optimized website! The reality is that people behave differently depending on which device they are using. You may find that your cost per lead is perfectly acceptable for Computers, but astronomically high for Mobile, or vice versa. Whatever the case is, you clearly need to adjust your bids accordingly to get the best ROI from your ad campaign. 3. Budget Optimization Unless you're familiar with how this works, the phrase "budget optimization" probably sounds strange. I mean, isn't your monthly budget simply your monthly budget? Well, if you only have one ad campaign, then the answer is yes. However, if you break up your advertising account into multiple campaigns, then you unlock the potential to optimize your budget. For example, our dentist has multiple different types of services like cosmetic dentistry, invisalign, sedation, implants, etc. Sure, you could have all of those services in one campaign, but that's not ideal. Instead, you want to break out all the individual services into their own campaigns with their own daily budgets. Then once you see your cost per lead for each service area, you'll be able to adjust your budgets accordingly. Obviously, you'll want to allocate more of your budget to the campaigns that drive the lowest cost leads and minimize your budget on the campaigns with higher cost leads. It's pretty simple, but only if you structure your account correctly. 4. Keyword Level Bid Optimization Most advertisers understand and are familiar with this tactic so I won't waste too much time here. If you know your keyword conversion rate is 5% (ex. you get 5 phone calls for every 100 clicks on the ad) and your target cost per lead is $50, then your max cost per click is $2.50 (conversion rate multiplied by the target cost per lead). Using that simple calculation you can adjust your bids to ensure you're hitting your target cost per lead. 5. Ad Copy Optimization I'm sure you're also already familiar with ad copy optimization. More specifically, the process of split testing two or more ad variations to determine which ad performs the best. But what does it mean to perform the best? That's a loaded question... One metric is certainly click-through rate. The higher the click-through rate, the better because that leads to higher Quality Scores. However, ads with the highest click-through rate are not always the ads driving the lowest cost per lead. With that in mind you must focus on both of those metrics. If you focus on click-through rate without any regard for cost per lead, then you'll likely be led astray. Likewise, if you focus on cost per lead without any regard for click-through rate, you may end up with low Quality Scores and in turn, higher cost per click. The Results Again, I can't emphasize enough that the above edits were continuously tweaked over 2 years. I'm not suggesting we made the edits above and then sat back and watched the performance improve. That's not how this works. The edits were made continuously, month after month. Remember the Kaizen process! Below is a graph showing the cost per lead and the number of leads per quarter over the past 2 years.

As you can see from the graph above, the cost per lead was $48 in Q2 2015. Then in Q2 2017 the cost per lead was $32. That's a drop of 33%! You'll notice the number of leads dropped in Q2 2017, but that's only because the budget was reduced for external reasons. To put the 33% reduction into perspective, let's compare the number of leads that you can get with a $5,000 per quarter budget ($1,666/month). With a 33% reduction in cost per lead, this dentist is now generating 51 more leads each quarter with the same exact budget! Obviously this didn't happen overnight, but I hope now you can see the power of continuous improvement in your AdWords campaigns.

Answers to 5 Common Local SEO Questions

In today’s article, get answers to 5 common questions about Local Search Engine Optimization (Local SEO).

5 Local SEO FAQs You Never Knew
You Needed Answered

Undertaking Local Search Engine Optimization today is extremely important for all businesses trying to build a solid local online presence -- just read our latest blog post on why Local SEO may be the best investment you ever make.

Today we’ve decided to summarize 5 local SEO FAQs you didn't know you needed answered… or maybe you did, and that’s why you’re here? Either way, we’ve got you covered.

#1. Does my business require a website for local SEO to be most effective?

The top rankings in local search are given to businesses that Google can trust. Getting into the top positions of the Google ‘Local Pack’ requires some website SEO – so yes, it is important to have a website!

Google correlates the address information on a website with the information provided on Google My Business, and then further validates this with the information about your business that is listed across the Internet.

A primary trust factor with local search is having a website that includes relevant content to your business categories with Google My Business, as well as having accurate NAP information (Name, Address, Phone Number).

Google will attempt to match up your services in your business listing with what you show on your website. If there’s a match then the trust-factor, and overall effectiveness of local SEO, will increase.

#2. So, what makes a perfect local search listing?

There are three core components which together will ensure that your local search-listing stands head and shoulders above the rest.

1. Accuracy and Consistency: Your business information across all directories, websites and local search listings has to be accurate and consistent. Particular attention to detail should be applied to your NAP and website URL.

2. A complete listing: Every field in your local listing should be fully completed. This includes photos, opening times and a detailed description with your business keywords incorporated. Completing all sections of your listing, not only provides more information for the search engines to deliver better results, but it gives the searcher more information about your business

3. Up to date information: Keep all information up to date across all of your listings. This includes incorporating any special offers and updating your opening times if necessary. It’s important to also manage and respond to any comments or questions. Visit your Google My Business dashboard to check on reviews and update your information.

#3. Do I need to build links to my Google My Business page and directory listings such as Yelp, or is link building primarily targeted to the website itself?

Most people are linking to websites that they find are of high quality, or relevant to their own business, hobbies or interests. At least that's what they should do anyway, so links to directory pages or a Google My Business page don't make much sense. This also doesn’t represent a reason to rank a business higher than another business, as most of these links would be built by the business owner and not earned.Generally, the type of links that help your listing rank higher are ones that point at your website.

#4. I’ve heard that submitting to directories can now cause ranking punishments by Google. How can I avoid this but still build the required citation links?

If the business listings are spammy and incorrect, then yes, Google may punish you. And it is correct that building links from low quality directories to gain links has been considered spammy for a long time now. Even with high quality directories, a spam factor that Google would look for is a business name with search keywords stuffed in it, or categories with location keywords being used.

So, as long as you are creating/claiming local listings with high quality directories, such as Yelp and other top directory websites, and you keep your NAP information accurate and consistent, then you don’t need to worry about any kind of ranking punishment.

Tip: Use the local testing tool my Moz to see what local SEO score they give you and to test the accuracy of your listings throughout the top quality directories.

#5. What if my business is relocating?

Relocating your business is challenging in the real world, and unfortunately in the online world it can be very challenging as well.

This process of change is not easy, and it is vital that all citations and business information is amended quickly and efficiently. Depending on your specific circumstances, various strategies can be implemented to keep your online presence visible during the transition. Unless your team has experience, then it's highly recommended to work with local SEO professionals to re-establish your new location online.

Top 7 Email Marketing Mistakes to Avoid

Unfortunately, many businesses make email marketing mistakes that cost them time and potential customers. Here are seven common email marketing mistakes most businesses make and how to avoid them. 

Mistake #1: Not Segmenting Your List

Do you send the same email to every subscriber on your list? If you do, you’re missing a major opportunity to target each customer in a way that might influence a response.

For example, you can segment your list by customer type. You likely have people on your list who signed up for your newsletter, but have never purchased anything from your business. You probably also have people who made a one-time purchase, but haven’t purchased your monthly service. Then, there is the batch of regular customers.

Each of these segments will need something different from your email messaging. Prospects want to know why they should buy. Old customers need a reminder of the products and services you offer. Your most active customers don’t need to be educated about your products, so maybe you should thank them or offer them a referral discount instead.

By segmenting your email lists, you can deliver the perfect message to that group of customers.

Mistake #2: Not Personalizing Your Emails

How do you address your emails? One of the most common mistakes we see is simply starting an email with “hey” or “hello.” This practice often leads to emails ending up in the trash.

Customers want to buy from people that they know, like and trust. The fastest and easiest way to show that you know them is to address them by their first name (assuming you have that information available in your database for the contacts you’re emailing).

Including personal information about the sender of the email is another great way to personalize your campaign. For example, in our email newsletter I always include a note about something happening with me or my family. This helps to humanize your emails and build a personal connection.

Mistake #3: Not Tracking Your Emails

How many emails in your last campaign were opened? How many emails converted to actual sales?

To know how successful your email marketing campaign is, you need to track the performance of your emails. Most email marketing tools have basic tracking for opens and clicks. However, to track sales you’ll likely need to take this a step further. For e-commerce businesses, you can use Google Analytics to track the online sales. For businesses selling via the phone or in-person, you can use special coupons or tracking phone numbers.

It’s important to analyze this data fairly regularly to notice any large fluctuations. For example, if you suddenly lose a bunch of email subscribers, you want to look at the most recent campaign to see what could have caused that. Or, if your click-through-rate increases a lot you’d want to figure out why and repeat that messaging.

Mistake #4: Not Using Conversational Language

Email marketing is not the time to show people how professionally you can write. Inboxes are flooded with dozens of emails per day and the reality is people don’t have the time or interest to read all of them.

Your audience wants to read something that’s easy and gets to the point. Keep your emails conversational and make sure to tell them right away why they should keep reading. Keep your paragraphs brief so they can be quickly scanned. Save the most technical language for white papers and how-to manuals.

Mistake #5: Not Being Consistent with Frequency of Emails

Nurturing your list is an important part of email marketing and you can’t do that unless you’re consistent with sending out your newsletters.

Stick to a schedule, whether that’s once per week, twice per week, daily, or once per month. Keeping the frequency consistent helps subscribers to remember who you are and why they signed up to be on your list.

Plus, if you’re providing content that is interesting and highly engaging to your audience, they’ll come to expect and rely on your emails. Again, they have the opportunity to read dozens of other emails, don’t risk letting yours get replaced by not sending them out as frequently as you should.

Mistake #6: Not Providing Value in Your Emails

Because people are constantly bombarded with emails, they’re likely doing anything they can to free up space in their inbox. To reduce email clutter, they’re going to resent any company that wastes their time and they’ll unsubscribe.

Ask yourself what your email subscribers are really looking for from your email list. Do they want discounts? Reminders of sales days? Expert information? Recommendations and referrals?

Go even further than this and ask what topics they really want to read about. For instance, if you’re a dentist, what do customers constantly ask about? Try to provide this type of value to them so subscribers don’t just ignore your emails.

Mistake #7: Not Asking for the Sale

Perhaps the most common mistake it not asking for the sale. It takes a lot of time to craft wonderful and compelling message or provide customers with great information. You want to make sure that time pays off and in order to do that you need to convert subscribers into customers.

If you don’t tell them what to do next, you’re missing out on a major opportunity to drives sales for your business.

Many people fear looking too pushy and think they’re going to push subscribers away. However, if you never ask for the sale, customers aren’t going to buy. Remember to include a call-to-action for a specific offer that will entice people to do business with you.