We’ve all heard of cost per click, and cost per lead, but what about revenue per click? This metric is the data-driven way to assess your marketing.
We walk you through why reporting on revenue per click is better, and how you can get past the data barriers that stop you tracking every lead.
It’s pretty simple. Revenue per click is the average amount of revenue based on your conversion rate within a given campaign.
For example, if you run a PPC campaign and overall it generates £20 across 10 clicks then that’s a revenue per click of £4.
£20 x 20% = £4
Revenue per click is calculated by multiplying your goal value or revenue generation by the conversion rate.
How many times have you sat in a board meeting and senior management have asked you, “how many sales does marketing bring in?”. Or, “how many sales has our paid digital advertising brought in compared to the amount spent?”
These are vital questions. But sometimes, they’re hard to answer.
You’re trying paid ads, you’re getting creative on social and getting targeted on email. But, your users tend to convert offline.
What does that mean?
Well, they might call your sales team. Or, they might visit your store. How can you trace that sale back to any online interactions they might have had?
You work in a marketing team promoting high value products or services. As such, you tend to see longer sales cycles. Leads come in, but they could take months, or even years to convert.
How can you understand a sale that’s generated from a lead with a gap over a few months. Most tracking timeframes last 90 days meaning you won’t get to see revenue placed against your marketing, or paid adverts, even if your customer can convert online.
Those of you working in eCommerce who are rolling your eyes right now. Hold up. You’re not off scott-free either. While you might be able to track your direct revenue brought in, what about the indirect impact of ad campaigns?
Every customer follows the buyer’s journey. That’s the awareness, consideration and decision stages.
You might set up an ad campaign where 100 users click and interact with your page, but don’t convert.
However, 50 of them return again, via organic or direct search. Maybe they convert on this session. Or perhaps they convert three touchpoints later.
Without proper tracking, you can’t see how your marketing is helping to move customers along the buyer’s journey.
In your paid advertising, are you tracking your ads by cost per click?
It’s a good indication of the level of interaction you’re getting on your website, but it doesn’t tell you much about what value those clicks have.
You could get 1,000 clicks on an ad but only generate one sale. So cost per click doesn’t give you information on how your ad is generating revenue.
Let’s use an example.
You set live two campaigns on paid social. Both result in 5,000 clicks (unlikely but go with us!).
From this analysis, you would assume the campaigns are performing equally well.
But, from a revenue perspective, campaign one generated £300 while campaign two generated £8,000.
So, maybe something about your targeting or your message is resonating better on campaign two as you’re generating much more revenue.
Again, tracking all of your campaigns from a cost per lead perspective is essential to a good report. But, it’s not the be all and end all.
Let’s use another example.
You set two campaigns live.
Campaign one and two both generate 50 leads.
Again, you think that they’ve performed equally.
But in campaign two, ten of those leads didn’t fit your product. While another five never converted.
The remaining leads convert, but at a much lower revenue than in campaign one.
From a revenue perspective, campaign one drives £50,000 in revenue while campaign two drives just £3,000.
Without a clear understanding of the impact on revenue, you’re essentially marketing blind.
Now, if you work in eCommerce then of course you have a much easier time of tracking your direct online purchases.
But what if you don’t have eCommerce capability?
In Google Analytics, you can assign values to goals. This means, every time a user calls your business, or fills in a form, you can mark that as being worth £100.
However, how accurate is this?
While it’s good to get an idea of the potential income you’re generating, wouldn’t it be better to just use the real figure?
This is where marketing attribution comes in.
Marketing attribution is the best tool to use if you want to measure your campaigns and advertising by revenue.
Ruler Analytics integrates with your preferred marketing apps to ensure all the data you need, is exactly where you want it.
Marketing attribution tools act as a go-between for your website and your marketing tools. They carry all of the essential data on your leads and input it to your CRM. They also harvest the revenue data inputted in your CRM and fire it in the apps that need it.
That means, in Google Analytics, you’ll be able to see revenue marked against your channels and your campaigns.
And in Google or Microsoft Ads, you’ll be able to attribute revenue back to your campaigns, and even keywords.
With this data, you’ll be able to:
Ruler is a marketing attribution tool that allows you to track by the one metric that matters, revenue. With key data where you need it, you’ll be able to feed back on campaigns and marketing channels from a revenue per click perspective.
Note: Want to learn more about how to maximise your marketing reports? Download our free eBook on marketing measurement to find the key metrics you need channel by channel.
Say goodbye to lack of visibility of your leads. Now, you’ll be able to see full customer journeys and use that data to find micro conversions that are powerful at moving customers from one stage of the buyer’s journey to another.
Here’s how it works:
So, forget cost per click and start tracking your marketing with revenue per click. Not only will you get a clear view on which channels and campaigns are working and which are draining your time and budget; you’ll also shift internal conversations from marketing being seen as an expensive and ineffective line on the budget to focusing on how marketing is fuelling growth.
Book a demo to get started with lead tracking and take the guesswork out of your reporting.