IN other words, how are you bringing people to your brand in the first place?
What are you doing to get them on your site? And how do you know that they’re going to be interested in what you’re selling?
This is where PPC comes in.
PPC is of course ‘Pay Per Click’ advertising and the two biggest networks are Google AdWords (which lets you place ads on searches) and Facebook Ads (which lets you target people by the details they have given Facebook).
But simply using PPC is not enough, if you’re going to be successful then you need to use PPC correctly and this will mean thinking about it in a highly systematic and logical way.
Why Use PPC Marketing Anyway?
This means knowing exactly who your target demographic is and where they’re likely to be/what they’re likely to be selling. It stands to reason that if you’re selling to someone who is interested in your product, you will shift more units!
But just as important is to think about your cost per click (CPC). This is the maximum bid you are willing to spend when someone clicks on your ad. The more you pay, the more your ad will be seen in competitive searches.
Conversely though, your objective is of course to keep this overhead as low as possible, so that you can maximize your profit margin.
And to do that, you need to calculate exactly how much each customer is going to be worth to you. This means calculating your CLV or ‘Customer Lifetime Value’.
That means identifying not only how much your visitors are worth to you in the short term but also how much they are worth to you in the long term – how many times does the average visitor buy once from you?
And how many times do they progress to the next stage in the funnel and buy a more expensive item from you?
You need to calculate this, such that you have an average for the overall spend of each customer. This is how much you can afford to spend.
Goal Tracking
Better yet though, you’re now going to watch those visitors that you’re paying for and see how likely they are to buy from you once, twice or more.
That’s because the CLV will be more or less for each customer dependent on how they got to your site. Goal tracking will allow you to do this and that way, you will then know how much you can afford to invest in each of your visitors.

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