The Trada Blog

Knowing Your NPS Score Can Give You an Advantage in PPC

NPS Score and PPC

Understanding your acceptable CPA (cost per acquisition) is the predicate to any successful performance-driven paid search campaign. The simplest formula for CPA is keyword price * conversion rate on your website. Knowing that you can afford to spend, say, $20 on each form fill out (e.g. your CPA is $20) constrains what keywords you can successfully compete on. Some keyword prices will simply be too expensive at your web site’s current conversion rate to work out to a CPA that is profitable.

While many companies obsess about their conversion rate as the primary way to drop CPA and thus gain access to bidding on more expensive keywords, the other way to affect CPA is to increase the lifetime value of the customer and in doing so, your acceptable up front CPA. A customer who stays longer is worth more to you (assuming you have a recurring revenue model such as a SaaS business or an ecommerce site where customers shop with you more than once over time). A customer who is worth more to you allows you to spend more to acquire them on their first purchase or contact. A higher acceptable CPA allows you to compete on more expensive keywords or in higher ad positions, thus increasing your conversion volume even without changing your conversion rate.

But how do you increase your LTV?

The simplest starting point is to understand how happy your customers are. Happier customers will stay longer. While many companies measure retention rates and other customer satisfaction metrics, the simplest way to measure customer happiness is with a NPS score. The Net Promoter Score (NPS) is a well tested metric using a simple question to find out how your customers really feel about your product: “would you recommend this to a friend or colleague.” NPS uses a simple 0 to 10 measurement system where scores of 0-6 are called detractors, 9 and 10 are promoters, and 7 and 8 are neutral. Your NPS score is simply the percentage promoters minus percentage detractors giving you a score of -100 to 100. While there is no standard measure, a NPS score above 0 is regarded as OK, above 30 as good, and above 50 as excellent. Few achieve 75 or higher NPS (keep in mind you can have a -75 as well!). As it correlates to customer happiness, if you have a low NPS score you will likely have a low LTV or repeat buying behavior and thus need a low CPA to make money off each customer.

There are many ways to measure NPS scores – some companies use email surveys, others ask during their customer cancellation process. At Trada, we have been working with one of the first “in-app” NPS survey systems called TallyBits (www.tallybits.com). We believe that knowing what our customers think about us as early as possible – and asking in the easiest way possible (right in the app) – gets us the best NPS data. In addition to raw NPS scores, we can segment our customers’ NPS rating by how long they have been with us, who their account manager is, who they were sold by, what industry they are in, and many more factors that can lead us to understand how to improve their customer experience.

Our goal is to constantly improve the happiness of both the Trada advertiser and optimizer. A happy customer is a long term customer. In the PPC space, new advertisers can be expensive to acquire. By keeping an average customer even one month longer, we can noticeably drive up the acceptable CPA we can spend in our own search efforts (yes, we use Trada for Trada) to acquire leads..

So, have you considered more than just your conversion rate in terms of how to gain an CPA advantage in PPC?

For more information about determine your NPS score, check out www.tallybits.com. To find out more about Trada’s paid search solution, you can request a free demo here.

Trada Hits 1 Million Conversions Milestone

We are excited to announce that Trada has achieved a huge milestone in our company’s history: we have generated over 1 million conversions for our customers since launching in 2009.

One Million Conversions

You can imagine the excitement around any big milestone like this for a company but this is particularly special to us. Our core value that drives our business is being performance-based. In every part of the business, we make sure to measure ourselves against the value we are driving for our customers. If you have ever been to the Trada office, you will see this throughout each team. All of our business units: marketing, engineering, sales, account management, HR, finance are working towards a common goal to perform for our clients.

“Having been at Trada since we signed our first beta customer doing 5-10 conversions a month, it is amazing to see Trada fly past the 1 million conversions mark. I am so proud to be part of a company that measures its success based on the value we drive for our customers, and to drive that value over 1 million times is exceptional,” says Matt Hessler, Director of Account Management.

As many of our readers already know, Trada provides advertisers with an expert team of optimizers who work to beat an advertiser’s conversion goals. When an optimizer beats an advertiser’s conversion goal, she is paid. This ensures our incentives are completely aligned with our advertisers.

Without our expert optimizer community, we would never have been able to achieve this milestone. Our marketplace currently gives advertisers access to over 200 certified paid search experts who specialize in many different verticals.

“I worked at Google for 5 years as an optimizer, in the London, San Francisco, and Mountain View offices. I specialized in financial services and worked with the largest advertisers in Europe and North America. I base all my work on data analysis and make insightful optimizations to get conversions for Trada clients,” said Trada optimizer Jack Turner.

Another important part of this milestone is how many conversions we can tie directly to revenue for our clients. Today 54% of the businesses Trada works with are classified as e-commerce, meaning a financial transaction takes place when a conversion occurs. In the past year, we have generated more than $13.8 million in revenue for our e-commerce clients alone.

“Trada’s secret is in aligning incentives around what matters; conversions and revenue. As we continue to grow our mid-market customer base, we are excited to generate millions more in revenue for both e-commerce customers as well as business to business and business to consumer clients,” said Trada CEO Niel Robertson.

Thank you to all of our customers, optimizers and employees that have helped us achieve this milestone. We couldn’t have done it without everyone working toward the same common goal!

To learn more about how Trada can help improve your paid search campaigns, contact us here.

AdWords Impression Share Report: Ninja PPC from Brad Geddes

In case you missed it:

This advanced AdWords trick will help you identify areas of optimization opportunity. In this webinar clip from our most recent webinar, Advanced Google AdWords author Brad Geddes supplies Trada with this strategy for using the AdWords Impression Share report, and your hosts Matt Hessler and Anna Sawyer take you on a deep dive to explain how it can make your AdWords campaign more profitable.

AdWords Impression Share Report with Anna Sawyer Matt Hessler and Brad Geddes

We’ll show you how to find the report, which types of impression share to look at, how to compare the data to Quality Score using two methods (the ‘advanced’ method and the ‘easy’ method), and how to quickly see where you can make changes that can help you get a larger slice of that impression share pie.

Please don’t mind the beeps, we were experiencing some audio issues that day. The beeps vanish after a minute or two!