The best way I can track my Adwords leads/customers is by using UTM paramenters on my links, and based on the data I collected this is what it currently shows me. I segmented my data to show all Adwords customers and then created a cohort analysi based on the customer's signup date. I then took the monthly amounts I spent on Adwords and compared it to all of the profit I received from each of these customer signup date cohorts and on average it is showing me a ROI of -27%, so I ended up losing money from the customers I acquire through Adwords. Then I go and calculate my LTV based on the same data I collected (only Adwords customers), and based on a total average I come up with a $114 LTV profit. There is no way I can spend $114 to acquire a new customer when my ROI customer signup cohorts are showing that I'm losing money on Adwords. I also did a LTV calculation on my best customers from this same Adwords customer data and I got $487 LTV and for my worst customers I got $30 LTV. Now the only LTV that looks closer to normal is my worst customer LTV of $30, but this is frustrating to see on the total average an LTV of $114 becasue if I would have spend that much to acquire a new customer I would definitely be losing a lot of money. Luckily, all my best customers come from other links that I don't control that do not have UTM paramenters; I'm guessing through organic search; so I don't know if my Adwords are helping bring these type of customers in or if I should just stop with Adwords advertising?
Do you know how your best customers are finding you through adwords? If you have a big enough data set there's likely some commonality.
It's a gross oversimplification but if you can track them from start to finish, there's no reason you should have to continue acquiring the $30 customers.
Answered 9 years ago
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