Blog

Hi everyone.

I just was looking at my Google ads for July 1st until today for one of my stores. I see that I spent $1282.00 for a very specific keyword that drives traffic to the product page of the site (not a a specific product).

My total tracked sales are $3725.79 for that buy. So that means that I have about a 30% customer acquisition cost for the sales based on the cost of the Google ad word. That seems high at first glance. The $1283.00 bright in exactly 1875 landings and 57 orders. The average order is $65 each. So I take the sales 57 and divide by 1875 landings (clicks from a google ad to my site) and that is a 3% conversion rate. A bit above average - about perfect. So I am closing about 3 of every 100 people that come to the site.

Ok so you ask ” are you making money at a 30% customer acquisition cost and a 3% closing rate”? I say YES. I can triple the spending and make money - If there are searches for the keywords.

How do I know I am making money? Well there are a few things to consider here.

- not every order is trackable. I figure 10-15% are not. So add that into the equation.

- many of the people that came to my site did other things besides buy - they sent virtual post cards, asked us questions and book marked the site. They will be back. Only 10% of our orders at max come from keywords. We have to build traffic this way - it will eventually lead to organic orders (orders without measurable cost associated to them).

- It is off season right now. Gift season is coming an this traffic will convert better in a few months. You have to always be on the radar building traffic. If you totally drop out you loose the bookmarking and the memory traffic - have to stay in the game now to make conversion better in the next few months…

Google ads are a game - the more you play - the more you learn.