Conversion Rate Tool for Adwords

[AdamMaxum]

I recently built this tool and looking for any feedback - How much are you paying for leads?

I wanted to create a simple tool that exposes how much money people/businesses are really spending in Adwords to acquire a "lead".

My basic formula was based on a 5% conversion rate (which is actually higher than the standard rate which is about half that). Taking the CPC of a keyword and multiplying it by 20 (clicks) to come up with the amount someone would spend to acquire a lead at the 5% rate.

The bigger plan is to use this as an advertising tool to promote a new company I'm working on.

 

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[JasonR]

Hmm. Interesting. I can do this math myself, and the conversion rate is a giant assumption. But the tool is neat.

So here's my dilemma. What if I'm selling an ecommerce product to the entire USA? There is no option for that. I tried typing in USA and got nothing. Left it blank and got nothing...

 

[AdamMaxum]

Thanks Jason for the feedback.

I should probably note that this tool is more geared toward service based businesses and local businesses...but adding in national GEO wouldn't be hard...I could also create a sliding conversion rate percentage area but yeah..conversion rates vary widely

I was going based on a decent conversion of 5% as the baseline considering most smaller businesses without an adwords guy perform worse ..or so 3rd party data says anyway


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[Ecom man]

I don't understand what this tool does. It makes assumptions about conversion rates. It makes assumptions on your average CPC. Both assumptions are not going to be accurate so the end multiplication will be wrong as well. It just seems like a glorified calculator, $1 per click times 20 clicks your average lead price will be $20 assuming x,y,&z all are even close which I would bet money they won't be. Am I missing a use for the tool somewhere?

 

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[Waspy]

Google do this for you.

Put a snippet of code in your thank you page and it tracks the people who make it from an impression to a click to a sale/lead. And then calculates your conversion rate and "cost per sale"

 

[AdamMaxum]

I don't understand what this tool does. It makes assumptions about conversion rates. It makes assumptions on your average CPC. Both assumptions are not going to be accurate so the end multiplication will be wrong as well. It just seems like a glorified calculator, $1 per click times 20 clicks your average lead price will be $20 assuming x,y,&z all are even close which I would bet money they won't be. Am I missing a use for the tool somewhere?

Conversion rates will always be assumptions because it differs for every single campaign/industry and no one knows what theirs will be until they run campaigns, test and optimize which the majority of businesses still don't do. The average conversion rate across all industries appears to be 2.5% or less says data floating around the web but again, no one knows for sure.

The CPC is not an assumption. I'm pulling API data that closely matches the CPC in Adwords tool planner.

The tools purpose is more for a marketing angle to show businesses (local biz) who spend money on adwords what they are more likely spending on a single lead because most of them have no idea....coming from someone who has managed many adwords campaigns for clueless business owners across many industries.

If I can use this tool to show a more realistic cost businesses are paying to adwords for a single lead, I can push them to use my new service (ad platform) coming soon.




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[AdamMaxum]

Google do this for you.

Put a snippet of code in your thank you page and it tracks the people who make it from an impression to a click to a sale/lead. And then calculates your conversion rate and "cost per sale"

Yes and no.

Most businesses still don't have the thank you page being tracked...surprisingly even in 2017.

Most businesses also don't setup the conversion tracking within adwords to see that data either or have no idea where to look unless they have a marketing guy telling them.

With a focus on service businesses ( not ecommerce) most leads (calls and forms) do not turn into a customer. A potential customer yes, but it's just a lead still. So it could take 2-5 leads to turn into an actual customer but again this varies widely between industries. Legal leads for example would have a higher number...say out of 10 leads maybe 1 case would pan out, etc.

This tool is more to give a somewhat estimate on potential cost a lead could cost you for any given keyword+city.

I don't know of a tool that currently tells this number without actually running a campaign and finding out after spending x dollars or running the math (which again, most service biz owners have no clue) after researching the CPC of keywords you're targeting.


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