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Old 02-26-2007, 07:11 AM   #1 (permalink)
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Default Making Decisions Based on Conversion Data

Changing your PPC spending based on conversion data and/or Web Analytics data is going to require the application of a lot of intuition and wisdom. It is NOT as simple as seeing lack of ROI and making a change.

I'll post some specific real-life examples in this thread to illustrate some of the thinking you'll want to apply.

OBSERVATION: Your cost per conversion on some general keywords is right around $100 - too high given that your average profit per sale is $60.

DECISION: Reduce bids to lower that cost per conversion to $60.

UNEXPECTED RESULT: Phone orders show an enormous drop.

REACTION: Raising those bids again restores phone orders.

CONCLUSION: General keywords are more likely to generate phone orders. (Those who are better at using the Internet are generally better at finding what they want and buying online than those who do general searches, need help finding what they want, or aren't comfortable buying online.)
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