Photo-Mix / Pixabay
For software-as-a-service (SaaS) products, Google AdWords can often seem like a dream come true.
You can advertise the exact keywords that your perfect customers use when they’re looking for the very solution that your software provides.
You don’t even have to ask designers for ads. You can just write up some text ads, and the leads will start pouring in.
But first, a caveat – If you’ve ever tried out AdWords, you might have found that it was a costly exercise that resulted in little more than a large check paid out to Google.
As a growth marketer, I’ve worked with a lot of SaaS companies that harness Google AdWords to generate a steady, predictable flow of qualified, wallets-out prospects. The likes of whom are serious about buying.
Before you jump into running PPC campaigns hands-on, here are a few principles to keep in mind so you get the most out of your AdWords dollars.
How is Google AdWords for SaaS different than With Other Industries?
Take e-commerce for example: often you’ll see sales coming in very quickly after your ads go live.
As a result, you can immediately see whether a particular keyword is an effective one for your business.
When it comes to most SaaS products, however, you’ll have a free 30-day trial or a phone call with a sales rep.
The sales cycle is therefore much longer. It’s long enough that you very well may not know which ads are most effective until months down the road.
On the flipside, the lifetime value of a SaaS customer can be quite high. You can afford to invest more in marketing spend. You don’t have to worry about the razor-thin margins e-commerce companies have to battle with.
Find the Right Metrics for Your SaaS AdWord Campaigns
Your sales model should determine which metrics you use to track your Google AdWords campaign.
Typically, SaaS products for Small to Medium Sized Businesses (SMBs) will follow a self-service sales model. This model directs customers to sign up for your product, try it out for a specified period of time, and decide to buy it.
All of this happens without the customer ever having to talk to a sales person!
In these cases, you should focus on your customer acquisition cost for each campaign. Look for a ratio of 3:1 between your customer lifetime value and your cost of acquiring each customer.
If you hit this ratio, you’ll be able to invest in AdWords, confidently knowing that the new customers will easily pay off the investment.
A high touch sales model is where new customers talk with a sales rep before buying. You’ll often find these models employed for more complex, expensive software, where the customer needs help to be successful with it.
Here, you’ll be focusing on the cost per lead you generate with your AdWords campaigns. You’ll need to work with the sales team to measure whether you’re generating qualified prospects, or just a volume of random “leads.”
Track Your Results
In e-commerce, you should always have a goal set Go to the full article.
Source:: Business 2 Community