The Trada Blog

Just how big is a 100 Billion?

In Google’s recently released founders letter Larry Page casually opened with a statistic about Google processing over 100 Billion searches per month. There are 2.6M seconds in every month, which means at a 100 Billion searches they are processing almost 39 thousand searches per second worldwide. It is astounding when you consider in 2010 they were only processing approximately 19 billion searches per month. This is the effect of the world wide increase in connectivity to the internet and our collective need to find what we are looking for on an internet that grows more immense every day.

Much of this search growth has come from the steady proliferation of smart phones and tablets. Domestically these devices empower users to search for whatever, whenever and we are more connected to information than at anytime in history. For many in developing countries powerful smart devices on with access to cellular data has connected thousands of user to the web that do not have access to traditional high speed internet in their homes.

As search marketers this daunting monthly search volume represents ever evolving opportunities to connect with new customers. Along with the opportunity presented by this massive audience there are challenges. Larry Page also indicated that each month among these 100 billion searches approximately 15% of them are queries Google has never seen before.

These stats inspire me as a search marketer. It is a great reminder that campaigns should be ever evolving as well. We need to continually research keywords and negatives to maximize our campaigns and we need to optimize for the the new device types that are creating so much of this search growth. Right now as a search marketer you have access to the largest audience on the planet and you can laser target users that are looking for your exact product or service. So what are you waiting for, make sure your campaign is optimized today!

Introducing PPCPath, a FREE AdWords Performance Enhancing Tool.

Today we’re introducing the first in a series of new AdWords performance tools at Trada: PPCPath, a FREE AdWords Performance Enhancing Tool.

2014 is going to be an exciting year for Trada as we take everything we’ve learned in the past five years and package it in whole new ways for a broader audience of folks who depend on PPC everyday.

PPC and AdWords is getting more sophisticated and more complex every day. The introduction of Enhanced Campaigns created a whole new set of bid management and targeting features. While powerful, it has never been more important to pay attention to your AdWords accounts on a regular basis. We believe there is an opportunity to make this very easy to do.

PPCPath is the first step in a set of products targeted at quick analysis and insights into your AdWords accounts. Useful to those spending $1000 a month or $100,000 a month, PPCPath takes the most common questions, lessons, and analysis we work on for our existing customers every day and makes sure your campaign is staying on track. It’s simple to use and just might save you a few bucks in a few minutes.

PPCPath will always be free. You can try it here. Over the next few weeks we’ll be adding new analysis and insight modules to it. We encourage you to check back frequently and re-run your campaigns against it to see what new features we have launched.

In the coming month we’ll be sharing more about the product suite we’ll be launching early this year. In the meantime we’re eager to get as much feedback as possible on what we’ve built so far. Please don’t hesitate to send us comments, criticisms, or questions to info@trada.com.

Niel Robertson and the Trada Team

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.