5 ways understanding your audience better will improve your Google AdWords ROI

Measurement and Analytics, Search / March 2018

James Moffat

James Moffat

As founder of Organic James leads a digital agency that brings innovative thinking, creativity and agility to a range of leading global brands.

It is all about the customer! Said everyone. Always.

But not everyone has the time or expertise to really understand the customer perspective when planning spend on Google Adwords. Often short-term necessity, or the demands of the business, will trump those of the customer and in this instance everybody loses and your ROI from Google AdWords activity will plummet.

If you find yourself targeting the wrong customer at the wrong time with the wrong message you will simply end up throwing money down the proverbial Thomas Crapper (It is a brand – look it up)

And nobody ever got a pay rise for doing that.

Here are five ways that you can use better customer insight to boost ROI in your Google Adwords account.

  1. Understand customer behaviour by linking your Google Analytics and AdWords data. If you can use Google Analytics to better understand how your customers behave then you can begin to identify the behaviours that increase the probability of a customer making a purchase or completing a specific action. For example, you can use retargeting to drive cross sell. If you understand that clients who bought product X are also likely to buy product Y, you can setup a campaign to target those customers. Similarly you can begin to understand the lifecycle of your customer journey and how long it takes a customer to buy. You can then tailor the timing and message of your ads to make sure the message is relevant to where they are on the customer journey. Effective use of data to create targeted campaigns will dramatically increase the ROI from your Google AdWords budget. Find out more about how we can help you with measurement and analytics here.
  2. Strategic approach with Google AdWords audience creation. Making sure you have a strategy around how you organise your audiences is a great way to improve campaign ROI. If you know that users that return twice to the website are more likely to buy a product then you can create an audience for these users to retarget them with quality, relevant ads. You can also ensure you do not make the classic mistake of targeting customers with ads for products they have already purchased.
  3. Identify upselling opportunities by analysing each individual user using User Explorer. User Explorer is a great tool in Google Analytics that allows you to see the historic behaviour of anonymous individual users. This enables you to see what an individual person might be doing over the lifetime of their interactions on your website. You can see what kinds of content they engage with or see purchase patterns. This will enable you to target people more efficiently with more relevant ads based on rules such as days since last purchase, or days to renewal.
  4. Understanding the role of each marketing channel. Attribution allows you to see where in in the customer journey you’re getting the best ROI from Google AdWords. For example, your display ads might be great for driving first click, but the final visit and purchase may happen on the third or fourth click. With that in mind, you need to understand the value of each campaign in that context. A final click ROI model might discount an AdWords campaign based on poor ROI when in actual fact it delivers most of your first click engagements. In addition you need to know how different AdWords campaigns interact with each other. One campaign might drive new engagements and one might drive the same people to convert. You can speak to a member of the Organic team to learn more about attribution.
  5. Understanding your most valuable customers and how to capture them. As time passes and your campaigns mature you can begin to see some customers are more valuable than others. They may come back time and time again, or make larger purchases. You can begin to understand what campaigns these users responded to and therefore what campaigns generate the highest value customers by looking at the actual revenue displayed in Analytics, or by linking your AdWords data to your CRM or EPOS system. You can then build out tactics to target the highest value customers with highly relevant messages that give a better customer experience. This will improve the efficiency of your campaign and deliver higher ROI.

The secret to high quality, highly relevant marketing is always understanding your customer. The same goes with Google Adwords and display products.

To learn more about your customer and how you can improve you Google Adwords performance, or for a complimentary audit of your own Google Adwords performance by a qualified Google certified Professional in the Organic Team, contact us today.

 

 

 

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