Improve SEM performance with your own unique KPIs


If you follow me on Twitter, you know I’m a sharp critic of those New York Jets and an unsolicited commentator on all things Real Housewives.

But you may also have realized that I am a tireless fighter for SEM audience and asset segmentation.

Brand versus non-brand, first consumer versus repeat visitor, women with high HHI (high household income) earnings aged 25-35, compared to coupon shoppers over 65… each the element and the audience are different.

It makes no sense to keep everything by the same standard of measurement.

Someone may say, “Jon, I have a common goal. I expect that all efforts will be achieved. Otherwise, they are simply not worth implementing. “

To which I reply, “Well, guess what. How much cheaper is yours Brand CPC versus your non-brandor how much higher is the conversion rate for repeat shoppers than for first-time shoppers? ”

Although you may have a common goal, you should still be aware that each element will work differently.

In addition, different performance levels need to be combined into a single KPI (Key Performance Indicator).

If you continue to give up all the efforts that did not reach the common KPI you set in all areas, you will not be able to gain new customers and you will quickly have a lower level of traffic.

Do you need proof? Well, here you go

Here we observe the “party N.”

They are an e-commerce brand directly to consumers, selling bacon and a variety of smoked meats (yes, it’s delicious).

Targets are segmented by base brand compared to non-brand, as well as NTF (first customers) versus repeat customers.

Literally how bacon is made … in search.

Our AOV (average order value) depends on a price that depends on the market price, so we focus on maximizing conversions compared to ROAS (return on advertising investment).

We know we will receive two to three purchases a year from a customer for five years in a lifetime.

Although repurchasing our brand is extremely cost effective and pays the bills, we are aware that they are now considered a depreciable asset.

As a marketer, do you put a lot of pressure on depreciable assets because they are cheap, or do you pay wazoo in advance for a new customer and realize that they will become very cost-effective on your second purchase?

Spoiler: Never stop supporting a repeat customer, but work hard for the first customer.

Because of this, we have six different KPIs (and their reasons):

Brand replication

  • Low CPC CPI.
  • Why: They’re loyal to the brand, with a high probability of purchase, so we want to achieve the lowest possible CPC (cost-per-click) to target the product we want to promote.

NTF brand

  • High Traffic CPI and Medium CPC CPI.
  • Why: brand recognition, usually the recipient of a gift or other marketing, high probability of conversion, CPC is more expensive, so if we can control it, LTV ROAS will be better.

Non-brand repetition

  • CPA (cost per action).
  • They don’t have loyalty, they’ve bought it once, but they haven’t come back to us by name, so it makes more sense to focus on a specific CPA goal because a new purchase is much less likely after that.
  • It is important to note that this is the least valuable customer and indicates a lack of brand loyalty.

NTF, not a trademark

  • KPIs with high traffic and high impression share.
  • You want as many of these as possible, and in a crowded market you often have to give up the cost (because it won’t be cheap) of visibility (make sure you have a great ad on site.
  • You will replace the conversion on the back.

Shopping (we don’t separate NTF from recurrence)

  • Conversion volume and KPI ROAS.
  • This is our money-making brand. Increase your sales volume as much as you can. Clicks are cheaper per ad unit. Just be careful not to fall below 110% ROAS.

Display / video

  • Brand Recognition KPI.
  • That doesn’t bring us direct sales. It builds brand awareness, so we make the lowest CPV for our 30-second videos and CPM (cost per 1000 impressions) on our display and test it regionally to determine the level of inbound visitors who visit the site for the first time.
  • We gather visitors for remarketing.

Another example is “client S.”

They are a chain of older housing communities across the country.

Their focus is on generating potential customers by submitting forms or making phone calls of a certain duration.

As always, we rank by keywords and services of brands and others. Every service has a different life value than a recurring income.

Independent living has a larger scope, longer duration of LTV and lower per capita income.

While at the other end of the spectrum, Memory Care has the lowest volume and shorter duration of LTV, but has the highest initial revenue in the first three years.

Understanding the evaluation of SEM-related senior servicesUnderstanding the evaluation of SEM-related senior services

In this scenario, we set the KPI according to the service bar (ignore the lack of brand traffic, this is not so worrying for us, as each location has a different name).

We work with three different KPIs:

Independent living

  • High Traffic CPI with Medium Low CPC.
  • Huge competition, so if you have a good price and a good location, the goal is pure quantity. However, if your CPC (from the competition) rises above $ 11, there is a quick chance that clicks will fall off the cliff, as there is no additional budget.

Caring for memory

  • KPI CPA.
  • Least competition, but a high level of researchers, which reduces the CTR (Clickthrough Rate) and increases the CPC. It is crucial that we focus on the CPA itself by recognizing that LTV is 25% of life expectancy. Income in three years in memory care exceeds income in eight years in independent living.

Assisted living

  • Low CPC CPI.
  • The competition is fierce and everyone sees themselves when a lot of research is put into it. You don’t need to be in position 1, just be visible and get traffic for as little as possible, as fixed budgets can fluctuate your CPC fluctuations of $ 0.50 to reduce your traffic.

Okay, I saw your proof. Now what?

Once we have identified the necessary KPIs, we determine the target numbers that everyone must achieve.

This means that things like ‘brand repetition CPC should not exceed $ 0.50’ or non-brand NTF should drive at least 250 clicks per week with a 15% impression share and a CPC not exceeding $ 0.75 «.

We then split the budget from what is most valuable to us to the smallest to split the budget.

Then we can find out if it is budget allocation will achieve the common objectives of the ROAS.

With me

No two accounts are the same (as if the Jets and Giants had named the same NFL team).

But as said, not every asset in an account is the same.

Therefore, keeping a non-branded cherry bacon for the first time at the same CTR, CPC, CVR (conversion rate) and ROAS when repurchasing under the terms of a brand that buys beef is like comparing apples to oranges.

Maintaining separate KPI objectives, strategies and elements will lead to a more accurate and predictable performance outcome.

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Selected image: idea Ink Design / Shutterstock


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