Increasing your business’s revenue from Google is really a numbers game. (I hate to do this, but it looks like you may need to dust off your old high school algebra book for this article.)
Here are the basic variables:
- Someone sees your listing on Google (like a Google AdWords Ad, a Google Places listing or a natural listing on Google). Let’s call the Number of times your ad is visible each month “N” – ie. the number of impressions your listings get on Google each month.
- The Click Thru Rate (“CTR%”) is the percentage of times your listing is clicked for every time it is displayed. So if your CTR% is 5%, then you get 5 visitors to your website for every 100 times your listing is visible.
- The next step in the equation is the Conversion Rate (“Conv%”) – The percentage of people that contact you once they’ve seen your website.
- Then there is your Closing Rate (“Close%”) – the percentage of time you close business with the people that call you.
- And lastly, we’ll need the average revenue you get from each customer (“$”).
So here’s the final equation:
Monthly Revenue from Google =
N x CTR% x Conv% x Close% x $
Here’s an example: Let’s assume your listings display 10,000 each month on Google (N = 10,000). You have a 2% Click Thru Rate on your ads (CTR% = 2%). 1 out of every 20 visitors to your website call you (Conv% = 5%). 2 out of every 5 people that call you become a customer (Close% = 40%). The average amount a customer spends with you is $1000 ($ = $1000). Your Revenue from Google should be about $4000 per month. (10,000 x .02 x .05 x .40 x $1000 = $4000)
So how do you make more money on Google?
Increase N – Get more impressions by increasing your visibility on Google.
Increase CTR% – Make sure your keywords are relevant and your listings are compelling.
Increase Conv% – Make sure your website gives a visitor a good reason to call you.
Increase Close% – Do you have a consistent closing process once someone calls you?
Increase $ – Do have strategies to increase your average revenue per customer?
OK – the math lesson is over, put your algebra book away and start thinking about this. The easiest thing to do first is work on the variable that is the weakest, or has the most potential for improvement. Here are some suggestions for finding the weakest variable:
If you aren’t getting many visitors to your website, there are two main things to look at:
Are you visible on Page One of Google? If you don’t know, request a Free Google Visibility Analysis and find out. If you need more visibility (ie. need to increase “N”), then try Pay per Click (PPC) with our One Month Trial, get on (or optimize) your Google Places account and do more SEO. Low visibility = low website visitors.
If you are getting lots of impressions (ie. your “N” is good), then your CTR% is too low. This is usually from either poorly written ads, or more commonly, your keywords aren’t very relevant to your business. The keywords may be too broad, or too narrow in focus. Re-evaluate your targeted keywords. Off-target keywords = low CTR%.
If you are getting lots of visitors to your website (ie. “ N x CTR% “ is good), but the phone never seems to ring, then look at:
Your website – does it give the visitor a compelling reason to call you? Is there a clear call-to-action like “call us for a free estimate”? Is your phone number clear and bold at the top of every page? Is your address at the top of every page (very important for local companies)? Does the look of your website match the qualities of your company? (In other words, if you are the low-cost leader, does it look inexpensive? If you are the high quality company, does you website look like a high quality site?) Bad website = low Conv%.
Your Keywords - Are they correctly targeted? Are they locally targeted? Are they targeted to the right geography? Are they exactly what someone would search for if they wanted exactly what you sell (ie. are they relevant)? Off-target keywords = off-target visitors = low Conv%.
If you are getting lots of phone calls, but never seem to close the calls, or if your average revenue from a customer is low, then take a good look at your closing process. Do you have a well-optimized closing process? Is it consistent and repeatable? Have you experimented with your closing process? Poor closing process = fewer customers and lower average revenue per customer.
Once you identify the weakest area, fix it. In the example above, the conversion rate (Conv%) was only 5%. If you fixed it and increased it to 10%, your revenue would jump to $8000 per month.
Continuing the process, if you then increased your monthly impressions from 10,000 to 20,000, your monthly revenue would climb to $16,000. If you were able to improve your Close Rate (Close%) from 40% to 60%, then your monthly revenue jumps to $24,000. Let’s say you then increased your average revenue from each customer ($) from $1000 to $1200. Now your monthly revenue is $28,800. Finally, if your Click Thru Rate were to increase from 2% to 2.5%, your monthly revenue would become $36,000.
Please remember, this is an academic exercise, and no one can guarantee such results. But you get the idea.
I hope this helps – if it does, please leave a reply, or click the “Like” button below.