We’re not in a recession yet, but everything in life costs more.
When everything costs more, sales are harder to come by. Especially if you’re not the cheapest option, or worse, your website isn’t ideal for encouraging purchase.
If you sell an in-demand good or service, have an amazing website, and are priced the lowest among your competitors, stop reading. This article will not help you.
For the rest of you who don’t have Amazon on your domain, this might be helpful.
As long as you’re not selling a one-off good or service (and yes, they do exist), any marketer worth his salt will tell you that a repeat customer is better than a one-time customer. Think about it from a lifetime value (LTV) point of view.
When selling any good or service, two of the biggest barriers to closing the deal online are cost to the consumer and the consumer’s experience on the website.
If lowering the price is out of the question in the long run and you don’t have the means to improve your questionable UX, we turn to the incentive in your PPC campaigns.
First steps: Analyze your audience and know their value
Exemption from liability: As of April 2023, this approach is valid for Search, Display, Discovery, YouTube, Performance Max (sort of), and Bing Shopping (I still refuse to call it Microsoft). Is no valid for Google Shopping. It may also be restricted to certain categories (ie financial services, healthcare, etc.).
The first thing to do is separate your past and present customers into active audience lists and identify their LTV.
To segregate customers, set a duration parameter (ie those who have purchased in the last 120 days), which can be done with a basic CRM load in the Google/Bing UI (this works well for Meta, Trade Desk and most clients). any media platform with an offer where the final experience is on your website).
Also, I’m a fan of creating audience lists of people who have completed a purchase on the site (use the same length as you do for the CRM load), which allows this to essentially act as a dynamic recycling list. (Same as the New York Jets’ quarterback position, a role in constant rotation and repopulation with a lifespan of two seasons before a player is removed and a new one is added.)
While doing this, an assessment should be made of how much of a discount you can afford. If you know that the average consumer buys from you three times a year, you can calculate how much of a first-time discount you can offer a first-time customer (eg, “15% off your first purchase”) .
Determine how much you’re willing to eat of the bottom line (possibly even at a slight loss) if you’re guaranteed to get one more purchase from that consumer.
I’m not recommending missing the incentive, but if you’re not getting your money’s worth and the user experience is rubbish (ask a 13 year old to make a purchase on the site, they’ll give you unnecessary brutality honesty how bad it is), make it really worth it.
It is good to remember: an incentive does not necessarily mean that it has to be a discount on a good. Other ways are gifts, free or discounted purchases, and package deals.
Or even the lure of the special incentive, where someone joins your exclusive club with their first purchase (this is a glorified way of saying they’ve been added to your rewards program and/or list of e-mail).
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Account structure: Make sure your campaigns are designed to serve different audiences
This is where the tedious grunt work comes in.
I prefer to target at the campaign level (required for maximum performance), but it can also be done at the ad group level. So, for the sake of this explanation, we’ll do it at the campaign level.
When possible, determine whether your search campaigns drive more repeat or first-time purchases. This will help you decide on audience exclusions and placements for the next part.
Duplicate your current campaigns. (Professional advice: doing this in the editor tools will save you time.)
If your current campaigns generate a lot of repeat buyers, keep in mind that the original campaign will be dedicated to them. Just put it in the campaign name.
Then apply repeat buyer audience lists and CRM lists as your target audience (there is a new feature in Google to bid only for new customers, but I don’t use it and prefer lists except to Performance Max). .
This will only allow ads for this campaign to reach those on your target lists. If the campaign gets more new buyers, apply the CRM and buyer audience list as a negative audience/exclusion so that the campaign only serves ads to new buyers.
In the new duplicate campaign, do the reverse settings of the original campaign.
Repeat this process for all applicable campaign types except Maximum Performance. At Performance Max, this approach is directionally strong, but far from 100%.
Duplicate campaigns (including audience segments). However, you will check the box for a campaign to bid on new customers only. The other campaign isn’t guaranteed to work for first-time buyers, but at the time of writing, it’s as close as it gets.
The key thing to focus on is that while the two campaigns look identical, they’re actually showing ads to different, non-overlapping audiences. This makes it possible to offer unique creativity to each audience as well.
Also, when first-time buyers convert, they will be served by the repeat purchase campaign from now on.
Implementation of the incentive
At this point, you’ve separated your campaigns into new/first-time customers and repeat customers.
Plus, you’ve determined a customer’s LTV and figured out how much and what kind of incentive you can provide to “bring them into your system.”
In the campaign aimed at new buyers, I recommend rotating three ads when possible (at least two).
One is the control/perennial ad (something you would also use for the repeat purchase campaign) and the rest are incentivized ads.
The incentive ad should reflect a promotion, which is only shared with lapsed or first-time customers to entice them to buy from you one time (before chasing them with emails).
Promotion extensions, sitelinks and other incentive offers can be applied at the specific campaign level to reinforce this.
Finally, unique landing pages that reflect the promotion in the ad (that are not navigable from the site) are often the key.
Takeaway food
Now you’ve successfully delivered a promotion to a new customer, dared them to give up their data, and collected that information to remarket to them.
It’s a clean method and gives you a better understanding of the budget allocation needs, as well as the creative resources that will be used for both groups.
The opinions expressed in this article are those of the guest author and not necessarily Search Engine Land. Staff authors are listed here.
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