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The Cost of Google Ads In 2022

by Red, The Motorcycling Marketer | Mar 31, 2022 | Advertising Wollongong, Digital marketing wollongong, Google Ads, Online Advertising Wollongong

Google Ads

The cost of Google Ads is one of those questions that sounds simple. But the truth is, there’s no one answer—in fact, the price can vary wildly.

Google Ads is an auction-based system. As such, the cost of running Google Ads campaigns varies from industry to industry, and even from campaign to campaign. Because these variables aren’t set in stone, it can be hard to predict how much you’ll end up paying for Google Ads.

But don’t worry. In this guide, we’re going to cover all of the variables involved in Google Ads pricing so you can understand how much Google Ads will cost for your business and how to set a realistic budget.

Factors That Help Determine Google Ad Prices

As mentioned above (and precisely why we’ve written this guide), there is no simple or one-size-fits all answer to the question of how much Google Ads will cost your business. Google Ads pricing varies depending on your industry, customer lifecycle, current trends, and how well you manage your account.

There are many factors that can influence the pricing of your Google Ads. Some have a bigger impact than others, but it’s important to be aware of them since they all work together to determine whether or not you’ll see a return on investment with your ad spend.

In this post, we’ll cover each factor in depth so you can better understand what determines the cost of running paid search ads on Google and how it affects your bottom line.

By Industry

The biggest influence on Google Ads pricing is industry. For example, the business services market segment, such as (legal, accounting, real estate, etc.) is one of the more competitive verticals in Google Ads, which generally translates to higher costs per click (CPC). This is due to the nature of the professional services industry: one new client could yield upwards of $1,000 – $10,000 depending on your business, so a CPC of $50 is a small price to pay for that client.

For businesses in the arts and entertainment vertical, their CPCs are relatively low in comparison to other verticals, but their conversion rates are also lower. To reach the $1,000 – $10,000 number, they need to reach a lot more customers.

The importance of customer lifecycle

You also have to take into account the lifecycle of your customer. For bigger ticket offerings, it takes longer for potential clients to move through the decision-making process, and your business needs to stay top-of-mind throughout that journey. This may involve multiple visits to your website, a content download or two, participation in a webinar, and more—before taking that final step.

Because of this, you likely won’t see a boatload of conversions at once—instead they will trickle in over an extended period of time. But your initial investment isn’t just going toward those conversions—it’s also an investment in additional leads and potential sales down the road.

Of course, if you’re selling something small like a t-shirt, odds are good that someone who sees your ad is going to buy it within seconds or minutes.

Trends

Neither consumer trends nor online advertising platforms are ever in a state of rest. It’s important to keep up with what’s going in your industry and within your niche—sentimentally and empirically. Take COVID, for example. At the height of the pandemic, average cost per click for the apparel industry was about $1.40. It dropped down to $0.70 in April when average conversion rates went up, and then ended up at $0.89 in May.

So much can impact your CPC, from seasonal events and holidays to competitor activity, economic shifts, and even public opinion about your brand or industry. You might have noticed that a lot of things are still up in the air these days, but one thing is certain: there’s a lot of opportunity for businesses to take advantage of reduced CPCs by increasing their marketing budgets.

Manage your Google Ads

Even if you’re pretty new to Google Ads, you’ve probably heard that Google Ads is the most powerful advertising platform out there. And the numbers back it up: a recent study by Google showed that the average ROI on Google Ads is 800%—that is, $8 for every $1 spent.

Of course, this all depends on how well you manage your account. You can’t just activate your ads and kick back. If you want to keep your Google Ads costs low and your returns high, you need to:

Keep a proper Google Ads account structure.
Report on your performance and make data-driven optimisations.
Maintain your keyword lists.
Perform regular account audits, and more.

How does Google Ads determine the price per click you will be charged when advertising with them?

The great part about Google Ads is that while it works as an auction, the winners aren’t chosen based on bid alone, and you don’t necessarily pay your maximum bid. How is this possible? Let’s take a quick run-through on how Google Ads determines the winners and what they pay per click.

Your Ads Quality Score

When a Google user searches for terms related to your business (a “query”), Google looks in its database to see if any advertisers are bidding on keywords relevant to that query. If yes, an auction is triggered and Google enters all relevant ads into the auction. Its first step in choosing a winner is to assign each ad a Quality Score.

When it comes to PPC (pay-per-click) advertising—and the resulting clickthrough rates and conversions—Quality Score is king.

What Is Quality Score?

Simply put, Quality Score is a relevance metric used by Google to determine how well your ad copy and landing page match a given keyword. It’s then used to calculate your cost per click (CPC) and ad rank for that keyword. The higher your Quality Score, the better your ranking and the less you pay every time someone clicks on your ad.

It’s really that simple.

Ad Rank & How It Works

The next step is for Google to calculate each contending ad’s Ad Rank, which determines if and where your ad will be placed in the paid results section.

If you have a high enough Ad Rank, your ad will be placed in the paid results section of the search engine and show up when a user searches that keyword or phrase.

Ad Rank is determined by multiplying your Quality Score (based on the quality of your landing page, click-through rate, and other factors) by your maximum bid (the most you are willing to pay per click).

Ads with the highest Ad Rank get shown most often.

Cost per click (CPC)

You can only pay for Google Ads if someone clicks on your ad. Depending on how much you bid and the quality of your ad, you may not have to pay your maximum bid. For example, if your bid is $1 and the ad below you has a lower Ad Rank than yours, you might only have to pay $0.50.

The Google Ads cost per click formula is: the Ad Rank of the ad below yours divided by your Quality Score, plus one cent. With this formula, an advertiser can pay less per click than another advertiser in the SERP (search engine results page) and still be in a higher position due to a better Quality Score. This lets advertisers with a small budget compete with big spenders on Google.

How does Google Ads budgeting work?

Google Ads budgets are often misunderstood. It’s not uncommon for advertisers to feel like their budget has been burned up in a matter of days, and to believe that Google Ads is prohibitively expensive. Here’s the thing: Google Ads isn’t necessarily expensive, but it is complex, especially when it comes to cost. So let’s set the record straight!

You’ve probably heard of Google Ads bids and budgets, but what do they really mean? Well, the amount you put into your budget is how much you’re able to spend on Google Ads. Your bid is the most you’re willing to pay for a click on your ad. If your ad participates in an auction, then Google takes out of your budget the amount that your bid was worth (or more). That amount is called your spend. The actual amount you end up paying for a click on your ad is called your cost.

Set a daily average budget/and spending limits

Your daily budget is an average you’d like Google to spend on your ads each day.

Say you set a daily budget of $10 a day, but your campaign’s first ad costs $3.19 and gets clicked on 5 times. That’s fine! Google will not automatically stop showing your ad because it spent less than $10 in the first hour of that day—it still has plenty of time to figure out how best to spread the remaining $6.81 around those other 23 hours.

Of course, if your ads are getting a lot of clicks and conversions, they will likely exceed whatever daily budget you’ve set for them. In that case, it’s important to note that Google will never spend more than twice your daily budget in any given day.

Spending limits are the maximum amount you’ll ever pay for a click, a conversion, or an ad. The average daily budget is the average amount you want to spend on your ads per day.

Google Ads originally could spend up to 20% more than the daily average budget—until October 2017 when it announced it could spend up to 100% more of, or double, your budget—if it means more clicks or conversions. This means that if you set a daily average budget of $50, your daily spending limit is $100. You will never pay more in a day than your daily spending limit, and you will never pay more than a month than your monthly spending limit (your average daily budget x 30.4; although if you’re not paying for Google Ads with the invoice method, you can set a monthly spend limit at the account level).

Determine your average daily budget

If you have a budget you’d like to spend on a specific campaign over a specific amount of time, it helps to know how much you can spend each day. This is your average daily budget, and it tells you the average amount of money that can be spent per day on your campaign.

To calculate your average daily budget, simply take your budget for the month for that campaign and divide it by 30.4. What should your monthly budget be?

This depends on:

Your overall Google Ads budget.

The average cost per click of the keywords you’re bidding on (which you can get with Google Keyword Planner or any other keyword research tool).

The importance of that campaign relative to the others in your account.

For example, you may want to dedicate more budget to Campaign A, advertising your best-selling product, than to Campaign B, which promotes content to prospective customers at the top of the funnel.

Bidding

When you use Google Ads, you will bid on how much you are willing to pay per click on your ad. This is called a bid. You can set your bids manually, or you can choose an automated approach.

If you set your bids manually, you set one maximum CPC (cost-per-click) for each ad group. You can also set different bids for each keyword in that ad group.

If you choose an automated approach, it means that Google will determine the best bid for your ads by looking at the behavior of users on the SERPs (search engine results pages). There are several automated approaches to bidding including maximize clicks and target impression share.
Many search engines have automated bidding options that help advertisers manage their campaigns.
Automated bidding helps advertisers reach their marketing goals more efficiently by using machine learning algorithms to adjust bids across their campaigns.

Google’s Maximize Clicks strategy aims to get the most clicks possible within your budget. Google predicts how many clicks you can get for each ad group and campaign in your account under a given budget, then adjusts your bid accordingly so that as many people as possible will see and click on your ads. You can set a target cost-per-click (CPC) based on the average CPC for a particular keyword or ad group. You can also set an average daily budget, which is the amount you want to spend daily over the course of an entire month.

Google’s Target Impression Share strategy aims to get as many impressions as possible at or above a target impression share rate (CPM). For example, if you have an impression share goal of 90%, your ads will be shown whenever they’re likely to get 90% of all possible impressions–not necessarily when they’ll get 90% of all paid impressions.

How much does a Google Ads click typically cost?

If you’re thinking about using Google Ads to promote your business, one of the first things you’ll need to know is how much does a typical click in Google Ads cost.

The key influence on pricing in Google Ads: keywords

In some ways, you can think of PPC advertising roughly along the same lines as traditional print advertising; you’d expect to spend more on a glossy full-page ad in a national magazine than you would for a classified ad in a local newspaper. In digital marketing, however, the pricing isn’t influenced by the format of the ad, but rather the intent of and competition for the keywords you’re bidding on. So you can expect to spend more on a high-intent keyword like “roof repair near me” than something lower intent like “how much does it cost to repair a roof.”

If you’re in a super-competitive market such as legal or accounting, clicks can get much pricier. Think about it: how many law firms do you think are advertising on Google?

We’ve pulled together some keyword benchmarks in Google Ads to give you an idea of how much a click can cost for your business.

So, what’s the average cost-per-click in Google Ads?

It depends on a lot of things… but overall, the average CPC in Google Ads is between $1 and $2. That’s on the Search Network. On the Google Display network, clicks tend to be cheaper, averaging under $1.

The price you pay for a click depends on (as mentioned before) your industry and what type of business you have. It also depends on if you’re using the Search Network or Display network—and even then, ad placement matters. If you’re using the Display network and your ads are showing up on YouTube videos or Gmail accounts, for example, you can expect to pay more than if your ads are appearing in banner ads on news sites or blogs.

If you want to get an idea of how much your campaign will cost you before you run it, use Google Ads Keyword Planner.

How much are you paying for clicks on long-tail keywords?

Google Ads can be expensive, especially for broad keyword categories. But if you’re looking to save money while still driving qualified traffic, long-tail keywords are your best bet.

The reality is, broad keywords only make up a small portion of total searches—long-tail keywords account for the majority. Even better? They’re generally cheaper than their shorter counterparts.

For example, if someone has an ant problem in their kitchen, “exterminator [their town],” is one search they might perform. “Exterminator” is a broad keyword with a volume of 97,000 and a cost per click of $16.00 in Ahrefs. But they might also search for “how to get rid of ants in the kitchen.” This is a long-tail keyword with a volume of 9,100 and a cost per click of $1.40—much lower. The intent may not be as strong, since they could be looking to DIY, but it’s still pretty strong, so they’ll likely be open to—or even click on—an ad for an exterminator.

Key points to remember

You’ve been here a while, and we just want to thank you for sticking around and learning so much about the cost of Google Ads.

In this guide, we’ve talked a lot about the factors impacting your cost of Google Ads, but let’s do a quick recap:

The cost of Google Ads depends on your industry, customer lifecycle, and current consumer trends.
Google Ads operates on an auction system that rewards high-quality ads with lower costs and better ad placement.
You can exercise tight control over how your Google Ads budget is spent by using tactics like ad scheduling, geotargeting, and device targeting.
The average cost per click in Google Ads is between $1 and $2 on the Search Network. The average cost per click on the Display Network is under $1.
The most expensive keywords in Google Ads and Bing Ads can cost $50 or more per click. These are generally highly competitive keywords in industries that have high customer lifetime values, like law and insurance.
The average small- to mid-size company spends about $1,000 to $10,000 per month on its Google paid search campaigns. That’s about $12,000 to $120,000 per year.

The point is, before you open a Google Ads account, take the time to figure out what your budget will be. It’s one of those things that’s not just going to magically appear; you need to know what it is before you get started. And if possible, spend some time thinking about future campaigns as well—it never hurts to have a little extra on hand for when an unexpected opportunity arises.

Need a hand? Try our SOP library or give one of our helpful team a call.

Dedicated to your success

John

Can My Local Business Benefit From Guerrilla Marketing Strategies

by Red, The Motorcycling Marketer | Mar 15, 2022 | Advertising Wollongong, Digital marketing wollongong, guerrilla marketing wollongong

Have you ever heard about Guerrilla Marketing?

It’s a pretty cool concept!

Guerrilla marketing is a great alternative to traditional marketing. It thrives on original thinking and creativity, where imagination and ingenuity beat out big budgets.

Guerrilla marketing tends to be cheaper than traditional marketing, relying on smaller, more localized brick and mortar strategies like:
Stencil graffiti
Postering
Flyer posting
Street giveaways of products (like free samples) or other incentives, such as discount coupons

It can also use unconventional media like:
Mobile billboards (like trucks)
Human billboards (people wearing clothing with your brand message on it)

Let’s take a closer look at some of the more popular guerrilla marketing strategies

Graffiti

If you’ve ever driven past a brick wall and thought, “That needs some color,” then you’re ready for graffiti marketing.

Graffiti marketing, broadly defined, is when a company makes a mark on the world by painting public property with their brand name or product. It’s been around for many years now, but it has recently seen an increase in popularity.

There are several reasons why graffiti marketing might be right for your business.

First: it’s cost-effective. While it might cost more to get your brand on a billboard along a freeway than on the side of a building downtown, the impact in both cases is pretty much the same. Graffiti marketing also gives you an opportunity to tap into the energy and creativity that comes from working with local artists to design colorful murals that will catch people’s eyes and get them talking about your brand. This can help you reach younger audiences who might not respond to traditional forms of advertising.

Second: it gets people talking and sharing pictures on social media. The more eye-catching your graffiti art is, the more likely it is that people will stop and take photos of it, which they’ll post online where their followers can see them too.

Stencil graffiti

Here’s a fun, cheap way to get your brand noticed..

It uses stencils to create repeated works of street art. The advantage of stencils is that you can create multiple instances of your art across many different spaces in a short period of time. Stencils tend to be small in size (as opposed to a full-wall mural) and consist of simple designs.

So for example, if you’re about to launch a new product or service and you have a cool logo with bold colors and interesting shapes, make some stencils out of it and go around town putting them up! Or if you just want the community to know that [company name] is here and ready to do business, make some stencils out of your company name and logo, hit the streets, and give people something fun to look at!

Reverse Graffiti

When you think about graffiti, you probably imagine some punk in a hoodie spraying a message on a wall or sidewalk with spray paint.

Reverse graffiti is when, instead of adding to a surface, marketers remove dirt and grime from a street or wall to create an all-natural marking message. Just put a stencil on a sidewalk and then wash the uncovered spaces!

This creative tactic has been used by many large brands and even non-profits to get their message out. For example, you could use reverse graffiti to promote your company’s new eco-friendly product by creating the image of the product on a dirty sidewalk and then washing it away.

Stickers

Creative use of stickers is another great guerrilla marketing tactic that can be very successful when implemented well.

This method allows you to engage with your audience in a number of ways, and it can be a cheaper option than other forms of marketing.

Stickers are often used to leave a message in a hidden spot, or to create an element of surprise when they are found by the customer. They can also be applied directly to surfaces such as walls, vehicles, or sidewalks.

One way to use this tactic is to place stickers on things that already exist in your customers’ environment. This could include putting stickers on items like trash cans, stop signs, or cars. You can also create new stickers for your campaign and give them away at events or your retail location.

Undercover Marketing

One of the most interesting guerrilla marketing tactics we’ve come across is undercover marketing, also known as “stealth marketing.”

In this approach to guerilla marketing, marketers disguise themselves as peers amongst their target audience. One example is Sony’s campaign in 2002, in which actors were hired to wander about cities, asking strangers to take a photo of them. During the interaction, actors would rave of their cool new phone, boasting of its features and capabilities.

Flash Mobs

One of our favorite guerrilla marketing tactics is flash mobs!

Flash mobs involve organizing a group of individuals to perform a specific action or task at a pre-determined location and time. In some cases participants are hired actors, other times they are simply members of the community who enjoy the randomness of flash mobs!

We like flash mobs because they can be performed anywhere, by anyone—and they’re fun!

Publicity Stunts

Crocodile Dundee once famously said, “That’s not a knife. That’s a knife.” Why? Because he was in Australia. There’s no place like it.

But what if you aren’t Crocodile Dundee? How do you make people talk about you and your brand in a way that makes them stop in their tracks and say, “Now THAT’S a publicity stunt!”

Australia is the birthplace of many amazing feats that are now known simply as “stunts,” but which were actually incredible pieces of creative marketing that captivated the public and made them sit up and take notice.

Publicity stunts involve specific feats of awe and amazement, usually sponsored or in partnership with a brand. The most successful publicity stunts are augmented by other well-executed marketing tactics like social media campaigns, public service announcements, and more—but they all have one thing in common: they get people talking and thinking about the brand associated with them.

Treasure Hunts

Treasure hunts are a fun way to get your customers excited about a new product. Try customizing a series of clues based on the game your customer base is most likely to be interested in. You can hide prize boxes at various locations in your city and let players know where to look by posting clues on social media.

Winners can then receive digital codes, prizes, or hints for the next level of the treasure hunt.

Urban Environment

Guerrilla marketing allows you to take advantage of spaces that are already there, instead of having to create them. There are plenty of opportunities for guerrilla marketing strategies in urban environments, but the ones that work best are those that make great use of the space around them.

Whenever you’re creating a new product or service, think about how you can use the urban environment as part of your strategy. Look for places where people will see your message and get excited about it, such as on buildings, sidewalks, parks and other public spaces. If you’re going to be doing this type of marketing in an urban area, keep all the important rules in mind: keep it legal (don’t put up posters without permission), don’t deface property, and always be respectful to everyone around you—otherwise your guerrilla marketing efforts could backfire.

Online Guerrilla Marketing

Online guerrilla marketing campaigns are small and inexpensive, but highly creative in nature. They often appear in the form of viral videos or user-generated content competitions that focus on building an audience for a product or service.

A good example of this is the “Share a Coke With…” campaign by Coca-Cola, which was first run in Australia starting in 2011 and then later globalized. The campaign invited consumers to share a Coke with someone close to them. It did so by printing the most common names on bottles of Coke and inviting consumers to buy one that was labeled with their name. The goal was to drive brand awareness, increase sales, and create a feeling of personalization between consumers and the Coca-Cola brand.

Pros and Cons

Pros

If you’re just getting started with your business, chances are you don’t have a lot of capital to throw around. Guerrilla marketing can be a great way to make a big impact without breaking the bank.

While traditional advertising relies heavily on expensive media buys and ad space, guerrilla marketing campaigns take advantage of spaces that are already in the public eye. It can be as simple as using chalk on paving stones or as complex as painting an entire building—either way, it’s going to be cheaper than buying TV time.

With guerrilla marketing, your creativity is more important than your financial resources. Instead of wondering how much you can spend, you should wonder how cleverly you can get your message across. You might use a popular landmark to tell people about your product or create an interactive experience related to your brand theme: the possibilities are truly endless.

Guerrilla marketing relies heavily on word-of-mouth marketing, considered by many one of the most powerful weapons in a marketer’s arsenal. There’s nothing better than getting people to talk about your campaign on their own accord.

When done right, guerrilla marketing campaigns can snowball into PR goldmines. Some especially noteworthy or unique guerrilla campaigns will get picked up

Cons

Guerrilla marketing can be an exciting and effective way to reach new customers, but you have to be ready for the risks.

Guerrilla marketing campaigns often have a mysterious element to them, which is part of what makes them so engaging and powerful. But mystery can be a double-edged sword: while it can grab attention and make people curious, it can also lead to misinterpretation or confusion. A guerrilla campaign that’s too vague, or that doesn’t have enough clarity around its purpose or product, could result in an audience that just doesn’t understand—and that won’t take the time to figure out what your company does or how it helps people.

Guerrilla marketing carries another risk as well: if your campaign is done wrong (or done in a way that doesn’t align with your business), you could end up in trouble with city laws or the public. It’s important to make sure any guerrilla marketing campaign your company holds is legal and acceptable by local standards before you get started.

Many guerrilla marketing tactics are susceptible to bad weather, thrown timing, and other small instances that could easily threaten to undermine an entire campaign.

Savvy audiences may call out businesses who are implementing guerrilla marketing campaigns they don’t approve of. This is especially true of undercover marketing campaigns – if you’re caught, prepare to face the wrath.

Real-world examples of guerrilla marketing

Discovery Channel reminds beachgoers about Shark Week by placing novelty shark-bite boards along beaches.

You can find stairs almost anywhere in the world, and many ingenious guerrilla marketing tactics use stairs in their advertisements. IKEA uses its staircases to help consumers visualize how its furniture works at home.

The Copenhagen Zoo covers a bus in a custom design which catches the eye of many residents.

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Whether you choose to follow just one of these examples, or all of them, guerrilla marketing can be a fun tactic to include in your overall marketing strategy. And the best part is that it doesn’t have to be an especially expensive, time-consuming endeavor. It’s not a complicated technique, and it doesn’t require much in terms of manpower. In other words, you’re free to get creative with your guerrilla marketing efforts.

To Your Success

John

Time, How Important is it to You?

by Red, The Motorcycling Marketer | Mar 6, 2022 | Time Management

How bad do you really want it?

Here’s the thing – each day has a finite number of minutes. And how you spend each one determines if or if not you achieve your goal.

Think about that.

If you focus for 1/2 your time on things that are not in line with your goal….it will take you twice as long to achieve your goal.

But it’s worse than that. “Because goals feed on momentum”

Meaning that the faster you gain traction for achieving your goal, the faster you achieve your goal, and the better the chance that actually do achieve it.

I often hear people say things like, “I really want to achieve (whatever, income, a fitness goal, whatever)” but there are things I can’t control that get in the way. They are things like emails, texts, phone ringing, wife needs something, husband needs something, kids need something, kids have no boundaries so they scream incessantly if they don’t get their way…and on and on.

But here’s what I think:

If your goal is more important than those interruptions, then you would do anything to avoid those interruptions. You see, what you spend your time on is what is important to you. If you are continuing to allow the ding of a new email or text coming in to stand in the way of your success, what you are really doing is making responding to emails more important than your goal.

Which is actually ok. Because it’s your life.

And at the end of your life, if you would rather say “I answered 29,487,890 emails within 2 minutes each” than “I wrote 3 books, coached 387 people to success, and empowered thousands to greater peace through my trainings” then that’s your choice.

Hey, I GET that if you are an emergency responder that you have to answer your texts when on call. But you probably aren’t. And if you are, you have off time. And I GET when you say, well I have to spend time with my kids, with my wife or husband. I GET that.

But wouldn’t it be better to spend 2 quality hours with them where your head is in the game, than to spend 8 hours telling them to go away because they are interrupting you?

Wouldn’t it better to find ways to develop boundaries with your children or spouse and end up spending MORE quality time and less “interruption time”?

Look, I know you might be thinking, “John, you just don’t know my situation”. And you are right, I don’t. But I do know this…success is your choice. And if whatever you are currently spending time on is more important than success…keep doing it.

But if you really want success, and it’s really important to you, wouldn’t it pay to figure out how to deal with all the things that hold you back from success? Here’s the thing…that’s what I’ve done in my life.

“One challenge at a time”. I learned how to make a fulltime income online.

Then I learned how to make a fulltime income online showing people how to make a fulltime living online. I’ve struggled with answering each email as soon as it comes in. Because I really want to. But when I consider the cost…answering every email that comes in is holding me back from being able to reach literally millions of people and help them achieve their goals.

Because the distraction of answering every email when it comes in keeps me from scaling operations to generate hundreds of thousands of subscribers instead of hundreds. The distraction of answering every email that comes in keeps me from starting new businesses, new websites, writing new emails, writing new books, creating new trainings.

So the question is…how important is it to me?

How important is success to me?

Is it important enough to choose to spend my time on things that matter?

(It is)

What about you?

What is holding you back?

What is eating your time?

Are you willing to go through the rest of your life allowing that “time eater” to control you, or are you going to make a change and choose what you focus on?

Are you willing to come to the end of your life and say “I answered texts, I answered emails, I let the kids scream,

I let my family control me” or do you want to come to the end of your life and say “I changed lives, I spent quality time with my children and taught them to respect my time, I spent quality time with my wife and husband, and we had a great life together because of the deep respect we have for each other, I had the financial success that enabled me to provide better for my family, and it allowed me to help others less fortunate?”

Look, I know this has been…long and winded. But I don’t know any other way to fully expose to you my deep thought on this issue. You see, it’s about more than just “time management” or “writing a to-do list” or “eliminating distractions” it’s about choosing what you succeed it, and simply achieving your dreams – YOUR dreams, not the consequences of your decision to just keep allowing the that detract and distract to continue to run your life.

Do you want to be in control of your life and accomplish your dreams? Or do you want to allow other things, and other people, to rule you and accept their domination by…just letting them rule you?

Or do you want to take to task the challenge…how important is it to you?

How important is your dream? And are you man or woman enough to make the hard choices – and follow through – to accomplish that dream?

John

I wish to acknowledge “Sean Minze Life Coach and Entrepreneur of Note” for some of his valuable insights..

3 Easy Steps To Get More Customers, Than You Ever Thought Possible!

by Red, The Motorcycling Marketer | Mar 6, 2022 | Advertising Wollongong, Customer experience wollongong, Digital marketing wollongong, direct response marketing, local seo, niche marketing, word of mouth marketing

Step 1: Select A Narrow Target Market

A 100 watt light bulb, like the kind of lightbulb we normally have in our homes, lights up a room. By contrast a 100 watt laser can cut through steel.
Same energy, dramatically different result. The difference being how the energy is focused.
The same is true of your marketing. You have a limited amount of money. If you focus too broadly, your message will be too scattered to be relevant to anyone.
The goal of your ad is for prospects to say, “hey that’s for me”.
Take the example of a photographer. If you look at ads from most photographers you’ll often see a laundry list of services like:
Portraits
Weddings
Family photography
Commercial photography
Fashion photography etc..
The technical way photography is done may not change very much from situation to situation, but let me ask you a question. Do you think someone looking for wedding photography would respond to a different ad than someone who’s after commercial photography?
Do you think a bride-to-be looking for a photographer for her wedding might be looking for something radically different than a purchasing manager from a heavy machinery distributor looking to photograph a truck for a product brochure of course!
However if the ad just rolls out a broad laundry list of services, then it’s not speaking to either prospect, therefore it’s not relevant, therefore it will likely be ignored by both market segments.
That’s why you need to choose a narrow target market for your ad.
Being all things to all people will lead to marketing failure. This doesn’t mean you can’t offer a broad range of services, but understand that each category of service is a separate campaign. My advice is first dominate one target market, then move onto the next.

Step 2: Create A Lead Generating Ad

Even in a narrow target market, all prospects should not be treated equally.
All other things being equal, the more money you can spend marketing to high probability prospects, the better your chances are of converting them to a customer.
Just like our proverbial archer, who has a limited number of arrows, you have a limited supply of money for your marketing campaign, so it’s essential you invest it wisely.
For example if you have $1,000 to spend on an ad campaign which reaches 1000 people, you’re essentially spending $1 per prospect.
Now assume that out of the 1000 people the ad reaches, 100 are potential prospects for your product. By treating them equally, as you would have to do with mass marketing, you’re wasting $900 on uninterested and unmotivated prospects to reach the 100 who are interested.
What if instead of treating them all equally you could sift, sort and screen so that you were only dealing with high probability prospects and not wasting valuable time and marketing dollars on uninterested and unmotivated prospects?
You could then spend the whole $1,000 on the 100 high probability prospects. That would allow you to spend $10 on wooing each of them instead of the measly $1 per prospect you’d have if you treated them all equally.
With ten times the firepower aimed at the right targets, do you think we’d have a better conversion rate? of course!
But how do we separate the wheat from the chaff? The short answer is we bribe them into telling us!
Don’t worry there’s nothing underhanded here. We offer an “ethical bribe” to get them to identify themselves to us. For example, our friend the photographer could offer a free DVD telling prospective brides exactly what they should look for in a wedding photographer and showcasing some of his work.
A very simple lead generating ad could be headlined: “Free DVD Reveals The 7 Costly Mistakes To Avoid When Choosing A Photographer For Your Big Day”.
Anyone requesting this “ethical bribe” would be identifying themselves as a high probability prospect. You now have at least their name and address which would go onto your marketing database.
Remember the goal is simply to generate leads. Avoid the temptation of trying to sell from your ad. At this early stage you just want to sift out the uninterested and unmotivated so that you can build your database of high probability prospects.
Here’s the other big reason you want to avoid selling directly from your ad: at any given time (on average) about 3% of your target market are highly motivated and ready to buy immediately. These are the prospects most mass marketing hopes to convert. However there’s a further 7% who are very open to buying and another 30% who are interested but not right now. The next 30% are not interested and finally the last 30% wouldn’t even take your product if was free.
If you tried selling directly from your ad, you’d be targeting only the 3% who are ready to buy immediately and losing the other 97%. By creating a lead generating ad, you increase your addressable market to 40%. You do this by capturing the 3% who are immediate buyers but also by capturing the 7% who are open to talking as well as the 30% who are interested but not right now. By going from a 3% addressable market to 40%, you’re increasing the effectiveness of your advertising by 1,233%

Step 3: Follow Up Until They Buy Or Die

So now that you have your database of high probability prospects, what do you do next? Quite simply you market to them until they buy or die.
It may seem like I’m advocating being obnoxious and pestering people to buy until they cave in. Nothing could be further from the truth.
Traditional selling is focused on pressure tactics like “always be closing” and other silly little close techniques which are based on pressure.
It makes the seller a pest who the prospect wants to avoid.
Instead of being a pest, I advocate becoming a welcome guest. Send your high probability prospects a continuous stream of value until they’re ready to buy.
This could be in the form of tutorials, articles, case studies or even something as simple as a monthly newsletter that’s related to their area of interest.
This builds trust, good will and positions you as an expert and educator rather than just a sales person going for the jugular.
Various technology tools make it easy to automate this continuous follow up mechanism, making this a cost effective and scalable way of building up a huge pipeline of interested and motivated prospects.
Some of these prospects will convert into customers immediately, while others will do so weeks, months or even years later.
The point is that by the time they’re ready to buy, you’ve already built a solid relationship with them based on value and trust. This makes you the logical choice when it comes time for them to make a buying decision.
This is one of the most ethical and painless ways of selling, because it’s based completely on trust and an exchange of value.
While your competitors are blindly shooting arrows every which way in the hope of hitting one of the 3% of immediate buyers, with “The Visible Target Technique” you’re focusing all of your firepower on a clear and visible target.

Tune in to the minds of customers. Find out all you can about their wants and needs. And, above all, do what you do best – market your services! If you are in a niche business and want to increase the possibility that people with that need will find you Stop waiting for things to happen and make them happen yourself. Your destiny is just a click away!

To Your Success

John

Importance of a Customer Retention Strategy

by Red, The Motorcycling Marketer | Sep 16, 2021 | Customer experience wollongong, customer loyalty programs, customer loyalty strategy, customer retention strategy

Understanding The Metrics

Customer retention is critical — particularly for B2B companies. But unfortunately, building a sound customer retention strategy isn’t a high priority for many businesses.

While it is important to understand the number of customers that leave in a given period of time, it is equally important to understand the impact of these customers on your income.
Retention and churn rates can help you understand why the customers are leaving you and how to make appropriate adjustments in order to keep them happy enough to stay.
So I thought I would put together a few metrics you should really take notice of with your business.

Revenue Churn Rate refers to the percentage of revenue your business loses from its existing customers over a given period of time.
Gross revenue retention (GRR) is the amount of recurring revenue in a given period of time that is lost due to fluctuations in exchange rate, downselling or selling a cheaper product than the one you intended to sell to the customer.
As already mentioned, the churn rate is a measure of how many percent of your customers no longer do business with you over a certain period of time.

The simplest measure of customer loyalty is your company’s customer churn rate, Click here for your Free Calculator which refers to the rate at which customers stop doing business with you.
Your loyalty rate is the opposite of your churn rate and measures how many of your customers go into a competitor or stop buying within the same period.

Customer loyalty rates measure the number of customers a company holds over a given period of time.
Retention metrics are useful for companies with subscription-based customers, but not as relevant for companies with longer customer lifecycles, such as car dealerships. SaaS (software as a service) retention is a key metric that measures the percentage of customers that you retain over a period of time and shows current and future revenues.

Repeat Buyer Rate is the percentage of customers who have been with the company or company since their first purchase. To calculate your repeat rate, divide the number of customers who made multiple purchases over a period of time (the total number of customers in this period) and multiply by 100 to get a percentage number. This is the percentage of your customer base that has made more than one purchase.

Loyal Customer Rate measures the number of customers who repeatedly shop with you within a certain period of time. It can be calculated by dividing the number of regular customers by the total number of customers.

Developing a STOP THE CHURN Strategy

With this knowledge, it is easy to design retention strategies that increase customers “desire to purchase and maximize sales. It’s estimated that a mere 5 percent increase in customer loyalty can lead to a 25-95 percent increase in sales, thus customer loyalty is an invaluable metric which also happens to be a useful measure of customer loyalty.

It’s a good idea to evaluate your switching rate (the rate at which a customer will change brand or products) semi-regularly to keep the pulse of how customers respond to your retention and marketing efforts. To be more effective,
I recommend calculating your RPP rate (Retention per product) for different purchases to better understand where your customer journey starts and ends. If you keep an eye on these metrics, you can estimate where customers are crashing on their journey and give you the opportunity to take preventive action.

This new metric, known as Customer Experience Score, focuses on customer experience of your product or service over a period of time and examines how you can add improvement to retain customers. Customer loyalty measurements give your company an insight into whether you are able to meet customer needs over time.

Monitoring retention ratios is critical for a company to understand the lifelong customer benefit and quantify the effectiveness of its marketing strategy and customer service programs. For example, your organization should look at customer loyalty metrics such as customer lifespan and churn rate. Customer loyalty measurements and how they are carried out: Look for important customer loyalty indicators such as customer service life, value and return on investment.

Remember that it is cheaper and more efficient to increase the turnover of existing customers than new acquisitions. The money, time and effort to attract new customers is wasted if you do not keep your existing customers.

Understanding the bond is important because it gives you an insight into how your customers think about renewing their business with you. The primary metrics for understanding customer loyalty are the loyalty rate and churn rate, these metrics can tell you everything you need to know about why customers return or go. Retention rates are an important measure of the success of your entire loyalty marketing strategy, but to get a full picture, you need to understand why your customers choose to return or not.

It is important that loyalty indicators show how satisfied customers with your product or service are and how willing they are to try out competitors in your market.

It is important to know how many loyal customers you have because part of your turnover is customer-oriented. Your performance is measured by the number of monthly recurring revenues (MRR) from new accounts and business opportunities and not by customer satisfaction. Return on sales gives you an idea of how healthy the loyalty strategy is that works.

John

YBR Marketing