How John Scaled a Campaign With a $1500 Cost per Lead

Sat, Aug 27, 2022

In the last installment of How to Measure Success in Google Ads, John shares how he managed to scale a campaign even with a $1,500 cost per lead (CPL), and the recommended attribution tools that can help set your campaigns for success.

Here are the first two parts of How to Measure Success in Google Ads:

🤯 How to Measure Success in Google Ads: A High ROAS Doesn’t Equate to Success https://youtu.be/gYLCwlZ3Rhk

🧮 How to Calculate Customer Acquisition Cost (CAC): https://youtu.be/fvX2i-pXDos

0:00 Intro | How to Measure Success in Google Ads Part 3

0:48 How John Scaled a Campaign With a $1500 Cost Per Lead

5:27 Do you want to work with the best Google Ads agency on the planet?

6:07 Calculating Customer Lifetime Value (LTV) and daily profit with Lifetimely?

12:55 Why Northbeam is the best attribution tool

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🤖🦾🦿 The Ultimate Guide to Google Ads Performance Max for 2022 (Part 1-3): https://youtu.be/oXoFn7dUvL8

Want to learn more about Google Ads Performance Max? Here’s the link to all our PMax guide videos:

https://youtube.com/playlist?list=PLp…

🧐 Do You Have What It Takes to Be John Moran’s Right Hand? If So, We Need Your HELP! https://youtu.be/4Kcf-IHVbAw

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🛒 Everything you need to know about Google Ads for eCommerce:

https://sol8.com/google-ads-for-ecomm…

🧲 The only guide you’ll ever need for Google Ads for YouTube:

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Transcript
John:

Would you have an upset client if this was your cost per lead,

John:

of course, $1,500 a lead?

John:

Well, the flourish person has to identify as how many new customers

John:

are happening by your channel.

John:

Cuz your channel versus an affiliate channel are gonna have

John:

repeat rates that are gonna be a hundred percent different book.

John:

So that's one thing that's interesting is when you look at your CAC, you could

John:

also look at your, CAC versus your channel LTB, and then a lot of times Facebook has

John:

low AOB and LTB, but Google has high AOB and LTB because you warm them up and they

John:

continually go through the brand campaign.

John:

But then how often dare you gonna be paying for those people?

John:

Again, reason why Google ads agencies fail.

John:

this even works with lead generation.

John:

I'll give you just a snapshot , and everyone be honest.

John:

I want people to put this in the chat.

John:

Seriously.

John:

Would you have an upset client if this was your cost per lead?

John:

Of course, $1,500 a lead mm-hmm this year, they made 650,000.

John:

So.

John:

I spend a hundred K nice.

John:

Why?

John:

Well, they have a partner lead that comes in, it's a partner lead partner lead their

John:

average deal size about four to 6,000.

John:

The owner's a good owner.

John:

He goes, perfect.

John:

We're gonna take that $4,000.

John:

Then we're gonna sell them a reoccurring preventative maintenance program.

John:

And then we're gonna serve them a maintenance program.

John:

And then we're gonna look at all other equipment that, hospital has not just

John:

like , the MRI machine that needed a.

John:

I'm gonna take that bolt sale at three bucks, I'm gonna turn it into

John:

a hundred thousand dollars per month.

John:

Customer.

John:

They're really good at that.

John:

So when they say what's the, we don't even talk about cost relief,

John:

we talk about just cash and cash out.

John:

Mer media efficiency ratio.

John:

If I spend a hundred K what do I get?

John:

600 K how long does that take a year?

John:

John start to spend more.

John:

So it's, what's really interesting is by looking at just the previous

John:

period because my ears was funny.

John:

My cost per conversion.

John:

It's $1,500.

John:

It's always 16% difference.

John:

He's like here's $20,000 more because we've met every week.

John:

I go through every single one's leads.

John:

What happened to that chat lead?

John:

What happened to that phone call?

John:

What happened to this qualified lead?

John:

Your person answered.

John:

It said it was too far out of location.

John:

I think that's a mistake.

John:

Or should I adjust my campaigns?

John:

No salesperson should have never said that.

John:

Perfect.

John:

I meet with them every Thursday, nine o'clock in the.

John:

I know this company way better than I can.

John:

if they say John, your cost really $1,600.

John:

I'm like, ha good one.

John:

I'll hang up on him.

John:

And they'll be like, ah, that's pretty funny.

John:

Like, no one cares.

John:

It's not the metric we're looking at.

John:

We're looking at everything else.

John:

everyone's like, Hey, John's campaigns always have really good.

John:

Like Roaz and really good.

John:

CPA.

John:

No, I have a ton of clients sort of realizes one 20%, but the, or

John:

the CPA $1,600, they still love us.

John:

They've been on for.

John:

Why because I dig so deep that I understand their

John:

bottle better than they do.

John:

And I tell 'em, Hey, here's where you're failing.

John:

That's the best.

John:

That means we have to have access to the CMS or CRM, CMS four e-comm CRM,

John:

four Legion without a CMS or CRM access.

John:

There's no way for us to actually see what's happening.

John:

Yeah.

John:

And if they can't, here's the funny part though.

John:

They didn't have a CRM for their medical supply.

John:

So what I did every Thursday as I.

John:

What happened to that call?

John:

Yeah, that would Ari.

John:

You know what that didn't go into a deal.

John:

I'll follow that.

John:

Awesome.

John:

We had two more good quality leads that are coming in.

John:

What happened?

John:

Those two?

John:

That was a dud.

John:

That one was a bad lead.

John:

That was, they were just an old lady looking for a rocker.

John:

I think it's good.

John:

Okay.

John:

Let me know what happens to that one.

John:

How, and we literally go through the leads every single week.

John:

Here going to the contacts here.

John:

You'll see that there's one frequently used when you hit all filters.

John:

Most used properties, original source is paid traffic.

John:

And then I go through cool.

John:

And it, it sucks too.

John:

We're spending so much money.

John:

I got today, yesterday, yesterday, and I do this all right, boom, right here.

John:

And then right here and every Thursday I hop in and say, okay, this person

John:

here, we're looking at what type of lead This is what is the monthly cost.

John:

This one came in from Cisco SMARTnet.

John:

Cool.

John:

Is there a deal?

John:

Yes, there is a deal associated.

John:

Perfect company was created.

John:

What's going on with this deal at zero what's the potential goals while

John:

we have no idea, get back to me.

John:

that's the level that we have.

John:

I know everything that comes in, I know the quality I've already made

John:

changes based on what I saw come in.

John:

I'm verifying does the quality of lead actual quality I'm

John:

asking 'em for an update.

John:

So every time they join a meeting, it's like, oh crap.

John:

John's gonna ask about what's going on.

John:

you've already made changes.

John:

It's never like, Hey, these leads suck.

John:

That's the conversation.

John:

We should never have our client managers, our client advocates be looking saying,

John:

are we delivering you bad leads?

John:

Are we delivering you?

John:

Good leads.

John:

What happened with this lead?

John:

Why is it your sales team following up?

John:

Why is the deal.

John:

That has an annual revenue of a million dollars blank with no activity.

John:

Do we email 'em doesn't look like it.

John:

They'll never complain to me.

John:

I'm not the problem right now.

John:

Again, if we don't have the structure, we need it.

John:

If we do not have the structure.

John:

The reason why we don't need it is because the client's super happy and

John:

is gonna give us a glowing review.

John:

This is not a glitch I'm interrupting the video you're watching because I

John:

need to remind you that I'm always looking for people to join our team.

John:

So if you're passionate about Google ads and you wanna work with the best

John:

Google ads agency on the planet, please go to so late.com/apply.

John:

Speaking of working with the best Google ads agency on the planet, if

John:

you're having trouble with Google ads and you want professional help.

John:

That's what we do.

John:

You can go to.

John:

So lake.com that's S O L eight.com to apply for your

John:

free no obligation action plan.

John:

And if I've given you any level of value at all, maybe think about giving me a

John:

thumbs up and try to do our channel.

John:

That's how we choose the YouTube algorithm.

John:

So they actually know that I know what I'm talking about.

John:

If you have questions, comments, concerns, or confessions hit

John:

me below in the comments.

John:

And now back to your regularly scheduled program, John, I have a quick question.

John:

Have you used lifetime Lee app?

John:

they're using it.

John:

And in that we are not able to see the repeat purchase ratio.

John:

Like you showed us in by the numbers.

John:

Like you get a number and then you multiply average auto value and

John:

then you get the lifetime value.

John:

Right.

John:

But in lifetime lead, you get three months, six months,

John:

nine months, 12 months.

John:

Lifetime value.

John:

So we are not able to calculate the lifetime value of a customer.

John:

Okay.

John:

Yeah.

John:

Actually I was just searching cause I was like, I just heard that this

John:

morning, lifetime, and I'm reading back through, I was on my notes cause

John:

says we've been looking at life timely.

John:

That's what it is.

John:

So actually has it here

John:

like timely.

John:

Go to my dashboard.

John:

It's under lifetime value.

John:

And then it shows some, table, something like analytics shows for lifetime value.

John:

I,

John:

this thing's gonna be a big beast.

John:

Looks like sucking everything.

John:

I love Shopify.

John:

It's amazing.

John:

They just corned the market and everything eCommerce related.

John:

It's fantastic.

John:

I'm just looking at I know show like wicked reports.

John:

Like this is the whole reason why this is loading.

John:

Wicker reports to this.

John:

Hey John, your cost for leads.

John:

78 bucks.

John:

Facebook's is 51.

John:

For cost required new customers, 1 0 7 Facebook's 1 38.

John:

I'm like, so we have a cheaper C more expensive CPL.

John:

They have a cheaper CPL, more expensive C I'm like, what crack are you smoking?

John:

Like looking at reports like that.

John:

it's a neat commerce store.

John:

What's it cost for lead?

John:

I hate attribution tools are at lifetime.

John:

Have to look through this here.

John:

Oh yeah, this is exactly what nor B has analytics and Whoa, who's that guy go?

John:

If you wanted to if you do first month acquired, if you wanted do this

John:

thing, same exact thing inside N.

John:

39 43

John:

returning rates.

John:

10%.

John:

Yep.

John:

10%.

John:

Which means that it goes from three.

John:

So 43 to 47 in two months.

John:

Yep.

John:

Yeah, here's, here's one thing to think about too, is when you look at

John:

the analytics of the store, and it shows a 40% returning customer rate,

John:

it's 40% that happened this last 30 days from all customers previously.

John:

So this is gonna say 9% return.

John:

In during the selected timeframe of the month.

John:

So in the month, from last six months, yes.

John:

This customer here has a two year LTV on average, that goes out to 1 44.

John:

when you look at everything, which is really interesting.

John:

So this one is the small snapshot of attributed customers in that

John:

timeframe when they're first require.

John:

You look back at everything.

John:

That's why, if you look here, there's no way they could be

John:

making 1.6 million again, next month off of returning customers.

John:

Cuz not that many return.

John:

So kind of a cool thing though.

John:

I love this tool.

John:

There it is.

John:

This is what north BMA, very, very similar.

John:

And then you look at like customer value or with refunds orders, accumulative

John:

marginal, or you can take out the first day to see what is the added.

John:

And then total or averaged.

John:

Do you know if this is total or averaged?

John:

This is accumulated.

John:

So

John:

this is cool.

John:

I'm definitely gonna play around with this thing for reminding me, cause I saw it in

John:

the slack this morning and I just haven't had a chance to take a look at it yet.

John:

How are you using this on.

John:

I don't know.

John:

So I was actually looking at customer behavior in that we have

John:

repurchase rate and repurchase rate.

John:

And they're also I'm getting like 30 days, 90 days, 180, 360.

John:

So I don't know which number should I take to calculate lifetime value.

John:

Well, for first has to identify as how many new customers are

John:

happening by your channel.

John:

Cuz your channel versus an affiliate channel are gonna have repeat

John:

rates that are gonna be a hundred percent different for each other.

John:

So that's one thing that's interesting is when you look at your C you can

John:

also look at your C versus your channel LTB, if that's possible inside of

John:

here, which I don't know if it is yet.

John:

But that's, and then a lot of times Facebook has.

John:

AOB and LTV, but Google has high AOB and LTV because you warm them up and they

John:

continually go through the brand campaign.

John:

But then how often are you gonna be paying for those people?

John:

Again, like we stopped pulling back on brand.

John:

I did this this morning with like, we had 45% more spend in our brand.

John:

We made one less sale physically, one less sale.

John:

So we're gonna stop doing so we wanna protect your brand.

John:

Where is Chuck and cash out the window?

John:

Am I am my C is higher now.

John:

Oh, that makes sense.

John:

And then now the CMO is sending me over a spreadsheet that I have to fill out

John:

so that he can see why and how, but again, it's just because everyone's

John:

looking at everything grouped together.

John:

Cool.

John:

I'm gonna check this out.

John:

Thank you for sharing this with me.

John:

This is really, really cool.

John:

I wish they had given us numerous of returning in a income statement.

John:

Cool.

John:

Anybody else have anything?

John:

Always John give a quick overview of why morphine's better than

John:

looking for Tyro and oh yeah.

John:

So the reason why it's better is Wiggen reports, Hiro, and other attribution

John:

tools use primarily UTM parameters.

John:

You, 10 parameters are only 60% accurate and most often favor the brand.

John:

And if they can't tie a view attribution, it just goes right back to Google.

John:

So record report shows Google better.

John:

Trip oil shows Google better.

John:

Hiro shows Google better, but then when you drop your spin on Facebook and all

John:

of a sudden the Google channel produces, it's like, how is that possible then?

John:

And then they say, well, that's actually we don't know, they'll

John:

tell you the exact same thing that everything else will tell you.

John:

Hey, the Roy has sucked on Facebook and it was great on

John:

Google and it's the same thing.

John:

Nor beam will say, Hey, your RO actually sucks on Google.

John:

Facebook was better.

John:

The only reason why Google was good is cuz Facebook was good.

John:

And then you can identify where, why and how, and then make those changes

John:

so that you know that even if you suck all the Facebook attribution

John:

that made Google good, where are you winning reallocate there.

John:

And now you have two challenges that grow out independently of each other,

John:

rather than Facebook or Google, just dying when Facebook dies.

John:

Can't tell many times we've been hired to say, yeah, our Facebook team was horrible.

John:

So I fired my Google agency.

John:

my God horrible reason to get hired, but that's just because they didn't

John:

know any better, why they tracked Roaz and Roaz dipped because why Facebook

John:

sucked and their brand campaign died.

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