A growing B2B tech company improves AdWords returns by optimizing its campaign.

Results at a glance

CAC

Reduced from $120 to $95

CTR and Conversion Rate

Maintained at 5 % and 8%, respectively

Leads to Sales Ratio

Doubled

Founded in 2010, the company offers cloud-based telephony products. The digital marketing team was able to generate about 50 leads/day and their main online channels were both organic and paid search

Background

Founded in 2010, the company offers cloud-based telephony products. Its digital marketing team generated 50 leads per day from paid search (SEM) campaigns, primarily AdWords, and organic channels. The company's sales team consisted of 20 members. Half the team covered leads from within the organization. The others covered leads generated by AdWords.

Challenges

- Low leads to sales ratio – The AdWords campaign generated a good number of leads with a decent conversion rate of nearly 7%, but the quality of leads was poor, resulting in a total leads to sales conversion rate of only 3%, as 40% of the leads were non-workable. The main challenge, therefore, was to reduce the non- workable leads percentage and improve the leads to sales ratio. - High CAC (Customer acquisition Cost) – Of all channels, AdWords' CAC was the highest ($120). In response to this, management was considering reducing the AdWords monthly budget, which could adversely impact the sales and growth projections.

Solutions

Our marketing team reviewed the client’s business, needing one week to understand it and how the company ran its AdWords campaign. The following improvements were made:

Keyword Match Types were reset from Broad to either Phrase or Exact, as keywords that are broadly matched have good Click-Through Rates (CTR) but are expensive.
The ads, which had been scheduled to run all day, were restricted to run from 9am to 10pm when conversion rates were acceptable.
New Ad Groups were created to improve the Quality Scores, which were now monitored.
CRM was now used, resulting in a clearer identification of the performing and non performing keywords.
Negative Keywords were added to improve performance.
All key parameters (including CTR, main keywords, conversion rate, and quality score) are now checked daily to ensure all campaigns are running optimally.
The quality score threshold was changed to 7/10. If it falls below this value, the landing page or ad group will be revised.
Action must be taken if the click-through and conversion rates fall below their set values (5% and 8%, respectively).
Cost per conversion values were set to improve the control of CPC and CAC.

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Results

Our review and the improvements made yielded the following results:

Costs were reduced as non-performing keywords (i.e., not generating sales within a month) and keywords with high CPC values were identified and eliminated.
The average conversion rate improved from 7% to 12%
The number of leads that convert to sales doubled.
The CAC fell from $120 to $95

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