How to Build a Vending Machine for Customers or Leads?
The idea of having a vending machine that can help you to acquire as many customers or leads as possible seems fascinating.
As you drop some amount of money into it and then wait for it for a few days only to let you witness a new signup or sale appearing in your inbox!
That may seem like a quixotic project yet it is quite a stress-free and effortless job that will attract a host of customers to your website without a hitch.
Also, if you need more customers than general, simply add money to the machine.
If the idea seems logical to you and you want to implement it, in the following paragraphs I explain to you how to go about doing it.
We will start by focusing on converting search traffic from one keyword only.
This allows you to focus ruthlessly on the core essentials, though you can expand to other keywords later when your machine is profitable.
Finding Your Keyword
Suppose you find a customer who already appreciates almost every product/service you are selling.
It implies that you need not make any efforts to convince him/her to buy the business product/service, as he/she is already geared up to do so willingly.
For example, if you are into the sale of mobile phones, then this person will easily purchase his/her favorite mobile phone model right away from you.
So all you need to do first is create a list of the most potential keywords that your target customers will use in Google. Based on the number of your business product or service, the keywords may be either only a few or several.
To get an idea of what your target customers are looking for, make sure to place target keywords into Google.
The giant search engine will do its best to match a specific search term to what your target customers use, so this homework makes sense all the way.
To ensure how exactly the matching process goes with your so-called ready-to-buy customer, assign each keyword a percentage rating.
For example, if you put a specific keyword in Google and view a listing of several companies selling the same thing to your interested customers, assign at least100 % rating.
Alternatively, if you do not see even a single pertinent site, assign it 0%.
Appraise Development Costs
At the beginning, I stated that investing money into developing your customer/lead vending machine is an indispensable step.
In simple words, you are going to pay for the clicks that will not do any wonders in converting into customers potentially for a short time to come ahead.
Basically these clicks are meant for testing.
Therefore, it is important to find out how much investment is fundamentally required.
In this regard, you can take the help of Google Traffic Estimate to resolve how much funds you require to showcase your PPC ads in the fourth position.
We assert the fourth position initially to keep the budget controlled.
After you put a specific keyword into the tool, it is important for you to enter the “Max CPC” figure into the tool and ensure what position Google estimates you will acquire.
Revise this figure until you reach position four. This is a ballpark figure of how much you will need to pay per click.
Not necessarily that you will get clicks from every person who looks for that keyword. We are drawing a bead for only 3% of pertinent searches.
To resolve how many clicks that is, multiply the total number of relevant searches by 3%. That is the number of clicks your Google ads are most possibly to get, once your machine has been built.
For example, consider that the target keyword “boot polish” results in making 40,200 pertinent searches. This gives vent to the fact that you can expect to attract 1,206 clicks – once your machine has been developed.
To calculate approximately the cost of each and every click, multiply that figure by the new cost per click we just projected for position four.
That is the entire amount of investment required if you want to get your machine up and coming fast.
Creating Google AdWords
Create a spanking new AdWords account. Considering previous account history, Google can help compute the price that you have to pay for a single click.
The odds are like that if you appreciate most AdWords advertisers, you have a suboptimal history. With a view to building this lead funnel, it is a good idea if you begin with a fresh slate.
Set up an individual campaign that you can utilize for the entire customer/lead generation funnel. If you are planning to create additional machines sooner or later, create individual campaigns for them too.
Using a single campaign, you can create numerous ad groups. As of now, just think about ad groups as a way to group related ads and keywords groups.
It is sensible to create a single ad group if there is a single keyword that you have resolved to pay attention to.
If you are looking to enhance your machine eventually to add other keywords, you can create extra ad groups for groups of pertinent keywords.
As of now, we only need one.
After your target potential customer clicks your ad, they will automatically be taken to your landing page.
If the landing page is able to convince them easily, there are very high odds that they will buy your products or fill up a form for additional information.
This is termed as action.
However, not necessarily that every person who clicks on your ad will carry out an action. And that is all the way entirely logical; your offer will not appear appealing to every searcher.
However, a certain amount of percentage will. We refer the percentage to the conversion rate.
If 30% of target customers click on your ad and carry out the form on the landing page, the conversion rate is 30%.
Cost per Action
You can compute the cost per action by splitting up the cost per click by the conversion rate of the landing page.
Let us suppose that there is a landing page that acquires leads for a whitepaper.
If the per click cost is $1 and the conversion rate of the landing page is 6%, then it will cost you $24 to acquire a new lead.
It directs to the fact that the cost per action is $24.
You can create your Google AdWords account to evaluate and showcase the cost per action for you automatically.
To better your conversion rates, it is important that your landing page must attract as much traffic as possible. In this regard, suffice to say; to meet the needs, you will have to get ready to make investment for purchasing as many clicks as possible.
As you give a boost to the Click Through Rates (CTR) of your ads, you can buy tremendous and sumptuous traffic for less. With that said a high CTR truly helps in keeping up an agreeable testing velocity.
While you begin building your machine, the click through rates (CTR) of your ads may become lower than usual.
This gives the sense that less traffic will start arriving at your landing pages and tests will take an extended time to be carried out.
As you make headway, your testing velocity will step up. If you spend more, you can enhance the testing velocity.
Cost per Action vs. Click Through Rate
Above, I mentioned how you can utilize AdWords’s Conversion Tracking feature to keep a tab on actions that are carried out when searchers arrive at the landing page.
Google AdWords render you with another script, which you place on the conversion page.
AdWords will count the number of actions that come to pass for each of the two ads that you are testing, and will automatically compute the cost per action for every Google ad. This information is gold.
Different Google ads will grip the attention of different types of people and take them to your landing page. And these varied types of people will convert in a different way since their mindsets are poles apart.
While your landing page becomes more organized, you will experience the Google ad that attracts the targeted traffic typically puts a greater effect on the conversion rate compared to the landing page itself.
With this in mind, it is therefore significant to gauge the cost per action for every ad including the click-through rate or CTR.
The improved ad is the one that offers customers or leads at the least cost – i.e., the one with the least cost per action. That might not essentially be the one with the maximum CTR.
If you are at all times testing two different versions of your Google ad and two versions of your landing page, the amount it costs you to purchase a new customer or lead will keep plummeting.
(The reason is simple- the cost per click is invariably plummeting, and the conversion rate of the landing page is invariably stepping up. And these improvements burgeon together.)
Sooner or later, you will be able to acquire a new lead or customer for essentially less than you make from them.
When such a thing comes to pass, you efficiently have a customer vending machine. You can get hold of new leads and customers whenever you are in need of them, and at a fairly constant price.
In the time to come although, your progress will come to a halt and it will take you progressively longer time to streamline the cost per action.
So what generally comes to pass if progress retards right down, before you are breaking even?
Does this signify that the market is not feasible?
Value per Action
You can enhance the prestige of your valuable customer by fortifying relationships with them and rendering them with enhanced value.
Believe it or not, this is one the most effective aspects of marketing yet surprisingly it is also the aspect that gets minimum attention.
However stepping up customer value is a topic for another day.
Building Your Customer Vending Machine
These standards – gauging cost per action and entailing testing to drive that cost down – are implementable to any technique of churning out new leads and customers.
These standards include direct mail, social media and print advertising.
This technique of attracting new business is both sustainable and cost-effective. You are restrained exclusively by the size of your market.
If you are looking to attract even more customers, you simply require the amount of money you insert into the machine.
And when you are in need of less money, you just feel easy. And if you are earning loads of money from every customer than it costs you to earn them, you have successfully earned a license to print cash.
You can easily spend $1 in marketing and receive $2 back as profit. Sometimes less than $1 spending and receiving more than $2.