4 Simple Steps to Measure ROI On Your Lead Generation Advertising Costs
Are you rich?
I’m guessing if you’re reading this, you aren’t quite there yet.. or if you are there, you can always improve the bottom line.
Am I right?
If so, can I get an amen?
(Disclaimer: My preacher is not a cat. )
Bottom line: Unless you want a sinking ship from unpatched holes, you GOTTA MEASURE ALL YOUR ADVERTISING SPEND.
Of course, question is how…
Simple, follow these simple three steps.
1) Install Google Analytics on Your Website.
If you have already set it up on your site, then give yourself a pat in the back and do the dance of joy.
There are plenty of tutorials on the web on how you do this (just google “how to install Google analytics”)….
And if you’re totally lost, pay a college kid $20 bucks to do this.
They don’t HAVE to be an engineer but they’ll probably do it faster.. and it shouldn’t take them any longer than 15-30 minutes.
But make sure that the analytics code is on ALL your webpages.
2) Set up a conversion goal on your Google analytics account
Ok this is gonna be tricky, so you’re going to have to do some research on this, but let me give you a high overview of what this means.
Unless you are using ad networks that provide conversion tracking (such as search engines, some 2nd tier mobile networks, certain display ad networks), you won’t know if you’re targeting the “right” people.
The way you tell is by measuring “conversions”, i.e. seeing whether or not people took the actions you want them to take.
The way you do this is by embedding a small code in the part of the webpage that you show to your website visitor once they have taken that action.
Usually, it’s a thank you page.. or order confirmation page.
When that page loads and the code gets triggered, Google gets notified, saying that the user has done what you’ve asked him/her to do.
So to do this, you must tell Google what is considered your “thank you” page, also known as “goals”.
Once you set this up, Google will report what, where, who, when, and how many.
3) Tag Your Landing Page URL
This is a bit tricky, so let me explain with an example.
Suppose I want to advertise Solar One Media’s solar lead generation service on, say, SEIA (Solar Energy Industries Association) directory.
I want to track how many inquiries I get by paying them to place Solar One Media’s URL on their site via Google Analytics (step 1 and 2).
First, I’d go to the Google analytics URL builder, then fill in
1. the URL where you’d like to take the visitor (when the user takes action here, the user should go to the conversion goal/thank you page as described in step 2).
2. the information that I’d use to describe where the users are coming from, what the campaign name is, and so on.
Then press “Generate URL” and it will give you something like this:
Here’s a screenshot:
NOw, what you do is… you send that LONG funky looking URL to your ad rep and have him/her link to that.
4) Calculate Cost Per Lead
Now, all you gotta do is CALCULATE.
Very simple.. take the ENTIRE cost of your advertising (just the cost of traffic, not media creation, your time, etc.) divided by number of leads/inquiries/downloads/signups.
If this EXCEEDS your other lead generation advertising costs, kill it.
If it’s cheaper, keep going!