In Google AdWords Management, there are tons metrics to bear in judgement. (metrics is just a idiosyncrasy way of saying numbers). You difficulty to know your CTR (click-through rate), your conversion rate, and the generally sales volume per conversion to determine a few.
But perhaps the most important metric – at least the one you need to know to certainly dominate your competition – is the average lifetime value of a customer. To understand this concept, let’s use an example:
Let’s ponder that you are an attorney, and you are summons on the keywords divorce attorney. Here’s why:
If you skilled in the average lifetime value of a customer, then you can confidently boost higher than your competitors.
And for the sake of chin-wag and for easy math, let’s ponder that the average rate per click is $25.
In the above scenario, if you deduct below bad a repetition 20 clicks, then the total rate of those clicks is $500. And if your average revenue per sale is $1,000, then representing every 20 clicks or $500 discharge on AdWords, you make $500 ($1,000 commission – $500 AdWords cost). If your sales conversion rate is 5% then you bequeath likely transmute 1 of those clicks to a sale.
Well, assumed that scenario, your competitors may be zealous to blow diminish more than you. Perhaps they are zealous to blow diminish $30 or well-organized $40 dollars per click.
They are only thinking about the next marketing, right? Thus, they are looking at how much revenue that bloke is worth today? In command to dominate them you need two things:
1. After all, if they can duplicate your conversion rate and your revenue per marketing, then they would stifle be making a thoroughgoing cash overflow, right?
Here is where you can dominate them. A forward-thinking strategy
2. Cash-flow
Let me explain.
But in command to accomplish this feat, you need to know a key metric – that is the lifetime value of a bloke. If you know your numbers AND you have sufficient cash flow, you can definitely beat your competitors and dominate them when it comes to Google AdWords campaign strategy.
First, let’s define the word lifetime.
In this particular case, let’s call lifetime 3 years.