Not all users are equal to your business. Too often PPC managers and business owners think “Every customer is a good customer”.
It’s time to break free from this deadly mindset – some customers create more problems than profit. For example:
- Very average order value which doesn’t even cover your Google Ads expenses;
- High level of refunds;
- Don’t pay on time;
- Want all your attention;
- Have unclear demands;
- Always complain;
It’s a problem both for b2b and b2c business owners.
The solution is very straightforward -the BCP technique. The idea is to build a customer persona in Google Analytics and maximize ad spend on most valuable customers. We accomplish that using our 6 step formula:
Step 1 – Check Google Analytics Demographics reports.
Before you can start analysis make sure that you have enough historical data in Google Analytics. It doesn’t make sense to perform 80 20 analysis if you had only 5 conversions in the last 30 days.
If you don’t have Google Analytics tracking in place fix that asap. In meanwhile you can use your internal data and data from your CMS (website).
If you have Google Analytics make sure that you track the most important user actions (conversions) on the website such as form submit or purchase.
1. What age group gives 60-90% of my income?
This report gives you an overview of your conversion rates and purchase volume for different age groups. On the screenshot above you can see that users from 18 to 34 bring 83% of revenue due to much higher conversion rates.
2. What gender gives 60-90% revenue?
Step 2 – Google Analytics Technical reports.
It’s quite common to see the highest conversion rates from certain devices, for example, the latest iPhone version.
2. Desktop vs tablet vs mobile.
In 99% of projects, we manage desktop has a higher conversion rate. But the difference should be not as huge as in the example above. The conversion rate from the desktop is 4.5 higher but at the same time, 73% of traffic is coming from mobile. There are 2 steps here:
– maximize ad spend on the desktop in Google Ads;
– optimize the mobile version
Based on Google data from 2016 more then 52% of traffic comes from mobile and tablets. And this % is growing.
In 2019-2020 we experienced that around 70% of users are coming from mobile.
3. Browser & OS and Network reports
These reports give a lot of valuable information and send it to developers to cross-check.
Step 3 – High priority locations.
Step 4 – Languages.
It’s a very underlooked option. You can see how profitable are audiences that have not the local language in their Google Settings, for example, foreigners or immigrants.
On the screenshot, you can see that some languages have a 10x lower conversion rate compare to your main local language.
Step 5 – Build the customer persona segment.
Once you followed all these steps, you know who is your winning customer and you can build a customer persona segment.
A segment is a subset of your Analytics data, in our case only the most valuable users.
It might look like:
Females 24-34 years old from certain US states. Native English speakers (en-us as a primary language), in trend with the newest tech updates (latest iPhones). Making research on mobile but purchasing on desktop.
To build such segment click “Add segment” in any of Google Analytics reports:
Then add needed info:
Google Analytics will show you % of your users which match this segment. In our case, 10.35% users give 72% of overall profit. A perfect illustration of Pareto principles in action.
Your goal would be to maximize the quantity of those users across different Google Ads campaigns.
Step 6 – Maximize Google Ads ad spend on the “Customer persona segment”.
1. Create a remarketing list based on the segment you created in the previous step.
2. Add this list to Google Ads Search/Display campaigns with 300% bid adjustment.
3. Customize the message to these users. Check what content is consumed by this audience. Maximize the quantity of this content. Check how many days it takes to complete transaction.
4. Optimize your cold targeting. Consider adding bid adjustments. By adding the “Customer Persona segment” in your Google Analytics you would see how much of such users you get on the account and campaign level.
4. What 20% of Google Ads placements and Google Analytics refferals bring 80% of income? Maximize traffic from them.