This article is a follow-on to How to Test Customer Acquisition Channels for Value
After you’ve tested a customer acquisition channel for performance, you’ll also want to test the channel for growth potential.
Here is a 4 step process to testing for growth:
1) Decide on your overall marketing growth goal
You’ll first need to determine your overall company growth goal. Let’s say your company has 1000 customers and is looking to get on a trajectory to grow 20% month over month. This means that you’re aiming to add an additional 200 customers initially.
2) Decide how many new customer acquisition channels your marketing team can test
Depending on your marketing team’s bandwidth, they’ll be an upper bound to the number of new customer acquisition channels you’ll be able to test.… Read the rest
image credit: Nicholas Eckhart
A lot of SaaS marketers constantly test customer acquisition channels, but do they have a systematic process for testing?
Our most successful advertisers test new channels for 2 criteria:
- Ability to hit performance goals
- Ability to sustain those performance goals over a certain volume
This post focuses solely on to test channels on performance. My next post will discuss how to test to see if those channels can ramp up to sufficient volume.
Hitting performance goals is obviously important. Performance marketers are looking for sales, but typically in SaaS, it’s difficult to get a sale right away.… Read the rest
Cost-per-click or price-per-click ad networks are a black box to many marketers. It’s unclear how to game the system to get the best price. Well, today, I’m going to unveil how they work and how you can somewhat game the system.
img credit: wwarby
Strive for higher click-through-rates
The most important thing you need to remember is that publishers (and ad networks) want to get paid. In a CPC ad network, this means they only get paid for clicks. This means that if your ad draws in more clicks than other ads (has a higher click-through-rate), your ad will show up more.… Read the rest
Customer acquisition for B2B Saas has shifted over the years. A few years ago, an effective customer acquisition strategy was to offer a freemium package for your Saas product and upsell your users on your premium features. Free was a great hook to get initial users.
But these days, the Saas market is becoming inundated with new Saas products. Nearly every Saas company has either a free trial or a free package, so free software no longer a unique factor that distinguishes your product from the competition. Professionals are no longer jumping at the opportunity to try every new free Saas tool that is on the market.… Read the rest
image credit: Steve Rhodes
A lot of B2B advertisers ask us what a good click-through-rate is for their ads. In fact, about 30% of B2B marketers judge the performance of their ad campaigns by their click-through-rate. However, measuring whether the click-through-rate of your ad campaign is “good” or “bad” is complicated and sometimes impossible.
What causes high click-through-rates?
Let’s dissect what makes for a good click-through-rate: ad positioning, targeting & context, creative & copy, and ad format.
1) Ad positioning
This is the placement of the ad. On a website, banner ads are typically placed on the right side of the page.… Read the rest
You’ve worked really hard to build your email list of potential customers and rabid fans of your business. Maybe you’ve even poured a lot of money into this to entice people to sign up for your list. Unfortunately, open rate declines are natural for email newsletters and email drip campaigns.
What?? My open rate has remained constant at 15%! How can this be?
We’ve analyzed TONS of emails from various companies overtime, and even the best email marketers or the most interesting email newsletter publishers have declining open rates. Here’s a plot of the email marketing of one company we worked with.… Read the rest
image credit: Joe Lanman
I was chatting with my co-worker about what days of the week B2B marketers prefer to take out ad campaigns. He argued that most B2B marketers prefer to take out ads Monday – Wednesday. Afterall, enterprise software previously required high touch sales, and sales teams and decision makers don’t like to work the weekends. I argued that with the rise in Saas dominating the B2B market and growing at nearly 20% YOY, B2B companies are able to acquire customers with less high-touch sales. So, software users can start free trials right away without a credit card — even on the weekend.… Read the rest
I discussed on Tuesday the importance of changing your ad creatives in order to get the best PPC prices. But, how many creatives is enough to test?
This is actually a huge hangup for most advertisers I meet. Most marketers are too busy managing tons of different activities — no one has time to come up with a lot of creatives only to test a channel briefly and then scrap it all together. Here are 2 rules for testing a range of creatives.
Image credit: Digitalmarketer.com
1) Use a handful of offers
It’s worth your while to come up with a handful of offers that you can use to test every new paid marketing channel.… Read the rest
Last week, I wrote about how much budget you should test with when trying out a new ad channel. But, a number of new advertisers always ask me how much they should bid when testing a new channel.
image credit: bsabarnowl
A few thoughts on bidding:
Do the math
If you have a cost-per-lead (CPL) goal and have a general idea of your landing page’s conversion rate, then you’re in great shape. Let’s say that your CPL goal is $20. And, let’s say your landing page converts at 20% — meaning 20/100 people who come to your landing page sign up for your offer.… Read the rest
“How much should my test budget for ads be?”
I get this question all the time from marketers. Turns out there’s actually a math-based answer to this question. Let’s break that down.
So how much should a test budget be?
img credit: 401(K) 2013
You should understand how many leads you want from your test to know whether to double down on a given ad channel. Unfortunately, this will vary by advertiser. If you’re a Saas company with product pricing at $50 per month, then you may have pretty high conversions to sales off your leads. In contrast, if you are selling a $50k product that has a much longer sales cycle with a small conversion rate, you may need more leads — and more of a budget and time — to see if your test is successful.… Read the rest