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    B2b conversion rate =2% possible?


    hi

    im trying to sell a monthly billed b2b product, live chat for websites, and our marketing managers estimates are that 2% of all clicks will become into paying customers. Is this realistic or total bs? We have lots of competition, allthough we have a few features the other dont.

    Anyway estimates are like this

    100 clicks => 10 Free trials => 2 Paying Customers.

    What do you think of this? realistic? Also, our homepgae is currently not really call-to-actiony or at least has some isssues and we dont have a specific landing page for adwords.

    edit: 1 click will cost us approx 2$, and our product costs 9$ - 40$ monthly.

    pls reply!
    Last edited by atentat; Jul 26th, 2012 at 04:42 AM.
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    Your conversion rate is almost totally dependent on your sales message. You admit that it is not "call-to-actiony" so who knows what your rate will be. It's a matter of testing different pages with different messages (sometimes little changes produce big results). You must know what your potential customers are looking for and providing it to them instead of them going to competitors which you say there are lots in your industry.

    A 2% conversion rate is probably average although I think that's small. I would want at least double that. At least you set yourselves a goal.

    Another thing that will affect your rate doing PPC is how well you create your campaign. If your keywords are too generic, you'll get low quality clicks. If your ads are not good, your click rate is going to be low and so will your Quality Score which will drive up your costs. But targeted keywords with good ads that make them want to know more and good sales page, you'll be successful.

    Since you're starting, you'll more likely pay $3 per click. At 2%, that's $150 spent for every sale. Taking an average of $20 per month and assuming client retention is 10 months (do you know this number?), you'll make $50 average over the lifetime of each customer.

    You need actual numbers and maybe that $2 will be closer to reality. I assume you take it from the keyword tool which assumes an average QS of 5. A higher QS could reduce that closer to $1 in which case, the only unknown would be the conversion rate.

    You need to a) increase quality score for lowest possible CPC and b) increase conversion rate on your page. Put it all together and you'll have a profitable campaign.

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    • EGOL agrees : It is really easy to sit back, plug in some numbers and imagine how much money you are going to make. Lucid is right.... the Devil is in the execution. Most people loose money at PPC. Noobs have a really high failure rate. Get education.
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    I use adwords for my primary business, tax prep. I'd be quite happy with 2%. My experience so far at the end if April...

    So far this year, I've spent $5317 with on Adwords.* That's gotten me 95,577 impressions and 1130 clicks.* That gives me a cost per click of $4.70 and a clickthrough rate of 1.12%, which I'm relatively happy about since I think 1% is good.* This* a byproduct of two campaigns.* The larger one had a clickthrough of 1.4% and the smaller was only .80%, so I still have some room to improve but there were some keywords where I was competing against myself. My call to action is a phone call. Of clicks, my experience has 10% calling, and of those about 90% become clients.* Acquisition cost per client: $52.12.* In 2011, it was $63.28. 2010: $70.87.

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    • EGOL agrees : Nice work! Thanks for this report.
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    One quick thing I would point out; you are really talking about 2 different conversions here; both of which will likely have different pages involved and separate conversion rates.

    The first is when someone lands on your page from the PPC link - the 2nd is some period after the FREE trial has started.

    From another vertical that has good 'free' to 'paid' memberships that 3% is their industry standard. It may be that yours is much higher, but each industry will have its own conversion rate.

    Given this I would expect much less than 2% conversion from PPC to PAID conversion.
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    Originally Posted by atentat
    hi

    im trying to sell a monthly billed b2b product, live chat for websites, and our marketing managers estimates are that 2% of all clicks will become into paying customers. Is this realistic or total bs? We have lots of competition, allthough we have a few features the other dont.


    Anyway estimates are like this

    100 clicks => 10 Free trials => 2 Paying Customers.

    What do you think of this? realistic? Also, our homepgae is currently not really call-to-actiony or at least has some isssues and we dont have a specific landing page for adwords.

    edit: 1 click will cost us approx 2$, and our product costs 9$ - 40$ monthly.

    pls reply!
    Hi, here's some slightly more general stats on B2B conversion rates:

    Median CR for B2B businesses is 2.23%
    Top 25% for B2B businesses is 4.31%
    Top 10% for B2B businesses is 11.70%

    They're the industry stats as of March 2014.

    There's also some great tools you can using to improve your CRO such as heat mapping tools, A/B testing tools. My personal favourite at present is whoisvisiting.com which are tools which will enable you to find out what companies are visiting your website.

    Hope this is of help.

    Reem
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    In my AdWords account for a B2B webshop, my best performing keyword right now has a conversion rate of just under 9%. If I delete every other keyword, then that'll be the conversion rate for my whole account.

    What I mean to say is that you should examine the entire funnel and not focus too much on conversion rate. If you're just starting an AdWords campaign for your company I would expect you to start off with lower CTR and CR because I'd expect you to be testing different approaches. After all, 1% conversions from 1,000 people is better than 90% from 10 people.

    Focus on optimizing on-page conversions rather than optimizing your AdWords conversion rate. Meanwhile, optimize your AdWords for quality score and click-through rate, and your cost per conversion and conversion rate will improve automatically.

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