Maximising My Client’s ROI: The Account Success Metric
AUTHOR
- February 4, 2023
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AUTHOR
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Within Lifted Metrics, I track four KPIs to determine the company’s health.
Financial efficiency – Are we hitting the correct ratio of expense to income
Sales Success – Am I getting on enough quality sales calls
Release of Responsibility – Am I spending enough time working on the business (instead of in it)
Account Success – Are our clients getting the leads that we predicted they would
The four items make up a company health report card; this nifty tracking dashboard was installed upon me by my operations coach Alex Salinksky – a 10-year silicone valley COO.
The key performance indicator I’ll be discussing in this post is “Account Success”, it refers to the volume + cost of leads we estimated our clients would achieve and how many they actually received.
Under the client account success metric, we focus on two features:
Lead volume – Considering the client’s ad budget, expected cost per click and industry competition levels, how many leads do we think we’ll generate this month?
Lead Cost – Considering the maturity of our optimisation efforts and search competition levels, how much will each lead cost on average at the end of the month?
At the start of a new month, we look at our previous estimated lead forecast (cost + volume) and divide it against the actual results we got.
If we underperform, we will end up with a stat that’s less than 100%
If we overachieve, it will be over 100%
Anything below 100% is obviously bad; as long as this stat is over 100% each month as an average for all our clients, I’m happy. If not, we sacrifice a media buyer to the Google Gods.
We share this estimate with our clients at the start of each month, if we shared a number that isn’t competitive, they would just quit.
This setting of monthly expectations is incredibly important; clients need to know realistically what their Google advertising budget can achieve in terms of volume.
When managing several millions of dollars in advertising budget, it’s essential to ensure that expectations are met and that the ad spend is invested appropriately. By making “Account Success” one of my company’s main KPIs, it ensures that my clients are always top of mind.
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