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How to create ROI positive strategy?

Here is my approach to building the strategy:s – what do you mean by strategy? Most of the time, we get the following replies:

· How to get clients at lower cost

· How to improve the quality score of my keywords

· How to improve CTR?

· How to reduce my cost and get more leads

And so on…

While answer to these questions are important, in my opinion, these questions are a part of a strategy and not the strategy.

Here is an approach to building the strategy:

Even before we talk about Google Ads or Facebook Ads, we will focus on getting answers to these questions:

1) Who are your customers? (Demographic details)

2) What is the biggest the problem they are facing?

3) What is the biggest pain they are feeling because of this problem?

4) How competitors are solving this pain & problem?

5) What different are you offering than your competitors?

6) How much your customers are willing to invest to solve this pain and problem?

7) How much are you willing invest to acquire this customer?

8) How does your sales process look like? Explain me in detail...

9) If needs to generate leads for the business, then I would ask them qualification criteria for leads to be treated as Good Lead V/s Bad Lead.

10) Do they have a follow up process in place. Based on my experience, if you don’t follow with leads in the first 30 mins then the leads would turn cold. (We will explain that in a bit)

Never send these questions to clients on mail because they will never answer that. The best way to do it is either get on-call or meet them in person.

Once you get answers to these questions – what to do? I see lot of them getting blank and feel overwhelmed… If that’s the case, then relax because I am going to share my approach…

1) First get the clarity on the numbers: Question 7 is the one which I would focus on. Let’s take an example here, if you’re selling a digital marketing service $1500 per month and on an average, you’re retaining the client for 6 months then total revenue what you get is $9000. Out of $9000, how much are realistically are you willing to pay… if you say $90 then I must say you should revisit your numbers again. If I am making $9000 in revenue, I am willing to spend $750 to $1500 in acquiring that customer. Let’s say $1500 is my cost of acquiring my new customers… (This is the cost of acquiring my customer and not lead)

2) Understand the sales funnel: Question 8 is what I would focus on.

For any service business, typically, the sales process would look like following

· Person sees the ads & Clicks = Impressions & Clicks

· Person comes to the landing page = Landing Page visit

· Fills the form = Form Fills

· Prospects called = Calls

· Appointment is booked = Appointments

· Proposal Sent = Total Number of Proposals

· Deal Closed = Paid customer

This is the typical process which I have mentioned is for demonstration purpose. The process would vary from business to business…

3) Reverse calculation: We see a lot of them either miss this step or completely ignore it. This step very important because it will give you a lot more clarity on what keywords to target and how much you should pay per click. If you don’t have these numbers, you can ask your clients indicative numbers, or you can assume for your business.

4) Working on the numbers: Once you have got clarity, it is important to derive a few more metrics. What I mean by this – you must derive estimated clicks, impression and CPC. Let make it clear, here you are going to make an assumption before you are starting the campaign (in case if you are running the campaign then you use the existing data). Once you have the data, you can revisit these calculations and make the necessary adjustments…

a. Lead Generated = 100 (Value per lead = $1500/100 = $15) à If I assume 2% conversion rate – this is an optimistic assumption

b. Total clicks or landing page visit = (100/0.02) = 5000 – Revenue per click = 1500/5000 = $0.3

c. Assuming CTR of 4%, we would need the total impression = 125000

5) Now if I reflect on a digital marketing space, the CPC costs are expensive. Getting cost per click less than $0.3 is next to impossible. And I see a lot of people getting stuck at this point & in the worse case they tend to lose hope and even worst stop the campaigns or change the marketing agency.

How to tackle this situation:

You must focus the first 6 questions because that will help you understand the biggest pain that customer is facing and willing to pay. For example, we all know that the vitamins are important part of our well-being – how many of us are taking it regularly. I am 100% confident that very few people would be taking it on a regular basis. Let me give you another scenario, you have a severe toothache, will you wait for the toothache by itself or will you visit a dentist… I am 100% all of them would visit dentist (unless you are superhuman or you have Aladdin’s magical lamp). Once you have identified the biggest pain & problem, then compare and see how are your competitors’ are positioning them. Here it is important to know two things: 1) Unique Selling Proposition & 2) Emotional Selling Proposition…

Remember, People will pay for solving the pain immediately like a toothache. If your message selling vitamins, then chances are people go and check but very few of them would end up buying. If your message solving the biggest pain and problem then chances of your campaign to become successful is very high.

To create a successful strategy you must know:

1) One customer

2) One problem

3) One pain

4) One offer (AKA One Solution)

This is great for any new marketer or business looking to understand how they can create a strategy to blow up their business.


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