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Listen "What Does Client Expectations Mean, Importance & Examples"
Episode Synopsis
The No.1 Google Ads Coaching and Training Program. Watch Masterclass here: https://sfdigital.co/youtube
This is the exact conversation I had this morning with the client. And he was saying oh let's split the high-profit margin products from the low I said we first of all we haven't got the data. We only got like 39 conversions in the account.
And they were they started Google Ads very recently. And I kept telling him don't do it and he is adamant. No, I want to split it out. So, okay, what now what can you do? I mean, I'm very much I'm going to tell him after a few days that look we can't carry on working with you.
Because you bought me in as an expert to manage. And if you're not going to listen to me then I can't offer my best to you. And this is what most people don't understand the technical things which are behind these campaigns which most people don't understand. But we talk we covered quite a bit about smart shopping.
One last thing which I would like love you to touch on is most advertisers, business owners first of all don't understand the customer lifetime value. And how it can play a massive part in the profitability of your Google accounts. Because what they look at is the first transaction or I'm making a loss or I'm not making money.
I love consumables and I like the high tickets. I like anything that has tendrils, tangents. You know you bought, you bought this medical device and now this needs a new switcher every 6 months or whatever. We have a client who sells a very specific type of industrial tape. Ultra niche and he only sells it to HVAC companies.
That's it. And you would think like that is the most niche product in the world. Here's what's interesting. Is his Ecommerce campaigns lose money if you look at it from a single purchase perspective because a roll of tape is like eleven bucks and all of his first purchases are from the company, all of his paid advertising first purchases are from companies that are testing his tape.
They don't believe that it's gonna do the thing that he says it's going to do. They pay $11 for the tape. He's lost money. The lifetime value of a customer last time we spoke and I'm asking a number up again because I don't remember but I think it's around five grand.
Like, it's insane. So, he might pay $50 for an 11$ purchase which means he's haemorrhaging money but then make five grand over the next two or 3 years because once these HVAC companies realize, wow, you just made my life way easier. They buy in bulk and so the key there is making sure you pipe that data back into Google so Google knows oh this is functional and profitable.
You wanna be careful. This gets weird is there and I'd love your opinion on this too because I respect a few people's opinions more than yours when it comes to Google Ads and I need you to put me in a check if I'm going crazy. I'm afraid now to tell Google what we make. And I'm afraid because in the past we had manual control. We could control these things but now you're telling Google what you're willing to pay.
You're telling Google what you make it’s not hard for them to go, well, I know exactly what your margins are and I know that if as long as you're making this much, you know what I mean? And so, in the offline conversion tracking, all I'm doing is piping in enough, enough data to show profitability and then I stop because I don't want Google to see, you know, 5000% ROAS because when they see that, then, all of a sudden, my you know, CPC start going up.
Going up and our starts to come down and it's Well, they know, I mean, I tell this to everyone. They know, Google knows more about me and you and everyone else than we know about ourselves. Yup. Exactly. As simple as that. As simple as that and it's pretty scary and the way the algorithms and the machine learning is heading.
This is the exact conversation I had this morning with the client. And he was saying oh let's split the high-profit margin products from the low I said we first of all we haven't got the data. We only got like 39 conversions in the account.
And they were they started Google Ads very recently. And I kept telling him don't do it and he is adamant. No, I want to split it out. So, okay, what now what can you do? I mean, I'm very much I'm going to tell him after a few days that look we can't carry on working with you.
Because you bought me in as an expert to manage. And if you're not going to listen to me then I can't offer my best to you. And this is what most people don't understand the technical things which are behind these campaigns which most people don't understand. But we talk we covered quite a bit about smart shopping.
One last thing which I would like love you to touch on is most advertisers, business owners first of all don't understand the customer lifetime value. And how it can play a massive part in the profitability of your Google accounts. Because what they look at is the first transaction or I'm making a loss or I'm not making money.
I love consumables and I like the high tickets. I like anything that has tendrils, tangents. You know you bought, you bought this medical device and now this needs a new switcher every 6 months or whatever. We have a client who sells a very specific type of industrial tape. Ultra niche and he only sells it to HVAC companies.
That's it. And you would think like that is the most niche product in the world. Here's what's interesting. Is his Ecommerce campaigns lose money if you look at it from a single purchase perspective because a roll of tape is like eleven bucks and all of his first purchases are from the company, all of his paid advertising first purchases are from companies that are testing his tape.
They don't believe that it's gonna do the thing that he says it's going to do. They pay $11 for the tape. He's lost money. The lifetime value of a customer last time we spoke and I'm asking a number up again because I don't remember but I think it's around five grand.
Like, it's insane. So, he might pay $50 for an 11$ purchase which means he's haemorrhaging money but then make five grand over the next two or 3 years because once these HVAC companies realize, wow, you just made my life way easier. They buy in bulk and so the key there is making sure you pipe that data back into Google so Google knows oh this is functional and profitable.
You wanna be careful. This gets weird is there and I'd love your opinion on this too because I respect a few people's opinions more than yours when it comes to Google Ads and I need you to put me in a check if I'm going crazy. I'm afraid now to tell Google what we make. And I'm afraid because in the past we had manual control. We could control these things but now you're telling Google what you're willing to pay.
You're telling Google what you make it’s not hard for them to go, well, I know exactly what your margins are and I know that if as long as you're making this much, you know what I mean? And so, in the offline conversion tracking, all I'm doing is piping in enough, enough data to show profitability and then I stop because I don't want Google to see, you know, 5000% ROAS because when they see that, then, all of a sudden, my you know, CPC start going up.
Going up and our starts to come down and it's Well, they know, I mean, I tell this to everyone. They know, Google knows more about me and you and everyone else than we know about ourselves. Yup. Exactly. As simple as that. As simple as that and it's pretty scary and the way the algorithms and the machine learning is heading.
In God we trust