150% Conversion Increase - PPC
Genworth Financial was looking for ways to reduce marketing expenses but still generate enough leads to meet sales agent demand. Management decided to test Paid Search.
Though the first 6 months, campaign performance was producing a negative ROI, leads were costing over $500, Sales Conversion Rates were 7%, and it was costing $3500 to acquire each customer. There was no budget to scale the program with those economics, and executive management didn't think it was possible to generate leads on the web. The program was in danger of being shut down.
I was with Genworth for a few weeks, learning and asking questions of internal team members, and the Paid Search vendor, and began partnering with a great Analyst on the Genworth team who was also new to the company. We identified an approach to get some quick wins, establish credibility and give some proof points that Paid Search, if done right, could be a profitable and scalable lead generation channel for Genworth.
1. The Paid Search vendor was focused on the wrong metrics. There was a lot of discussion about click thru rates, but no discussion of what leads were costing and no discussion of sales conversion rates.
2. We identified the conversion rate was very low, around 2%.
Get a quick win without asking for money or resources. I pitched an idea to leverage an endorsed partner's brand (AARP) and test that vs. the Genworth brand. We swapped out logos and changed the template from the Genworth blue and white to the AARP red and white.
Within days, the conversion rate grew by 150%, from 2% to 5%, and cost per lead dropped by 63% from $550 to $200 . I needed more data to gain comfortable level of statistical significance. After a few months, and a little more testing of the landing page, cost per lead dropped another 13% to $175, getting us well within the ROI territory we needed, and proving profitability was possible through Paid Search. I earned the right to ask for investment to scale.