Let’s look at the basics of acquiring a customer from cold traffic.
For an ice-cold prospect to become a customer they will need to travel through three stages:
- Awareness – the prospect must first become aware that there is a problem and that YOU or your organization have a solution for it.
- Evaluation – Those that move through the Awareness Stage must now evaluate the various choices available to them, including your competitor’s solutions.
- Conversion – those that move through the Evaluation Stage are now at the moment of truth – purchase.
A cold prospect cannot evaluate your solution until they are first aware of the problem AND your solution.
Conversion is impossible until the prospect has first evaluated the possible courses of action.
A successful paid traffic system consists of multiple advertising campaigns that work together to acquire leads and sales for your business at break even or better.
[perfectpullquote align=”left” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]Using a series of well-orchestrated ads and offers, you’ll transform ice cold prospects into loyal customers.[/perfectpullquote]
To move prospects through a marketing funnel they will need advertising designed to satisfy their needs at each of the three stages.
- The cold prospect should be made offers that create awareness, build authority and establish trust.
- The warm prospect should be made offers that facilitate evaluation and convince the prospect to take action.
- The hot prospect should be made offers that encourage higher dollar, more complex or repeat purchases.
To move prospects through the three stages your advertising and messaging must be responsive to the prospect’s stage in the “customer journey.”
Here’s the basic metrics to look at for this process:
- Click Through Rate (CTR) – The number of clicks divided by the number of impressions on an ad and any other call-to-action. The higher the click-through rate the more prospects you will be moving from stage to stage in the “customer journey.”
- Cost Per Acquisition of Customer (CPA) – The amount of advertising spend divided by the number of customers generated. Drill down on this metric by calculating CPA by traffic campaign, traffic source and more.
- Cost Per Lead (CPL) – The amount of advertising spend divided by the number of leads generated. Once again, drill down on this metric by calculating CPL by traffic campaign, traffic source and more.
- Cost Per Click (CPC) – The amount of advertising spend divided by the number of clicks on the ad, ad set or ad campaign. Believe it or not, this is the least important of these four metrics.
If you’re not familiar with some of the lingo I used above, here’s a quick breakdown for you:
- Traffic Temperature – The classification of the audiences you target with your digital advertising campaigns as cold, warm or hot.
- Cold Traffic – Audiences targeted with ads that have no prior experience with your brands, products or people. Ads targeted at cold audiences introduce the business to the prospect and establish trust and authority in an effort to build awareness.
- Warm Traffic – Audiences targeted with ads that are aware of your brands, products or people but have not yet converted to a customer or haven’t purchased in a long period of time. Ads targeted at warm audiences should be designed to convince a prospect that you have the superior solution.
- Hot Traffic – Audiences targeted with ads that have previously purchased. These audiences know your reputation and have used your product or service. Ads targeted at hot audiences should convert a customer into a high-ticket or repeat buyer. Most ad campaigns to hot audiences will be conducted through retargeting.
- Retargeting Campaign – An ad campaign designed to reach customers and prospects with a message and offer that is based on their previous behavior. That behavior might be an opt-in to a lead form, a purchase or a visit to a page on your website. Ad retargeting is available from ad platforms such as Facebook and Google.
This is the first version of this post. I’ll be expanding on it in the next version.