The Power of Micro and Macro Level Conversions for Lead Generation
In today’s Google Ads landscape, conversion tracking plays a key role in feeding Google automated bidding system information on what each conversion means to your business. Most businesses track Macro level events, such as calls and form submission, but you need to go deeper than this. These actions do not represent the true macro conversion for lead gen businesses, which is of course the actual sales transaction. Just like in e-commerce businesses, the actual macro conversion is the transaction itself, the sale that occurs from the site’s checkout page. For lead gen businesses this information isn’t automatically inputted into Google Ads. As a result, the system doesn’t know which of these conversions resulted in actual sales transactions.
In this blog post, we will delve into the world of macro and micro conversions, their significance, with a particular focus on how lead gen businesses can better utilize macro and micro level conversions to improve the efficiency of their Google Ads campaigns. Additionally, we will touch on the relevance of value attribution and its impact on bidding behavior. So let’s dive in!
Macro and Micro Conversions
When discussing conversions, it’s crucial to understand the difference between macro and micro conversions. Macro conversions represent the ultimate goal of a marketing campaign, while micro conversions are intermediate steps that lead to the macro conversion.
When is a Conversion Not a Conversion?
It’s important to recognize that not all conversions hold equal value for a business. Traditionally, cost per acquisition (CPA) metrics consider phone calls, form submissions, or quote requests as conversions. However, this assumption overlooks the varying value that each lead may bring. To address this, businesses can introduce layers of qualification to the conversion process. For example, in some industries, the true conversion lies in the completion of a quote, which then progresses to the application stage and, finally, the policy sale. Lead gen businesses can manually input this information into Google Ads to better feed Google’s automated system data on what each conversion means to your business. Understanding these nuanced steps allows businesses to refine their strategies and better optimize campaign performance.
The Importance of Data Feedback
One of the key reasons why understanding conversions and optimizing data is crucial lies in its ability to feed valuable insights back into platforms like Google. By providing accurate and detailed conversion data, marketers can refine their targeting, bidding, and overall campaign strategies to drive better results.
Validating Conversions for Accurate Analysis
The first step to improving conversion data is ensuring its accuracy. By validating conversions, businesses can determine whether a particular action or event signifies genuine interest or intent. This validation process can be as simple as categorizing conversions as “good” or “bad” based on predefined criteria. This approach provides insights into the quality of leads and helps refine the bidding strategy accordingly.
Offline Data Integration for Comprehensive Analysis
To improve conversions and lead quality, analyzing and leveraging first-party data from your clients CRM is essential. Lead generation and its subsequent measurement are vital components in assessing the success of your marketing efforts. By analyzing lead data, including factors like lifetime value and distinguishing between new and returning customers, you can optimize your strategies accordingly.
Adding Value for Enhanced Conversions
The optional inclusion of value attribution can significantly impact bidding behavior, particularly in automated campaigns like Maximize Conversions and Performance Max. By attributing value to various actions or events, Google can identify and prioritize high-value conversion actions. This can lead to more efficient and effective bidding strategies, ultimately maximizing campaign performance.
In summary, conversions serve as vital metrics for evaluating the success of online marketing campaigns. Distinguishing between macro and micro conversions allows for a more nuanced understanding of campaign performance. Optimizing data, particularly by leveraging first-party data for lead generation, is instrumental in improving conversions. Furthermore, incorporating value attribution and understanding the varying levels of conversion importance can enhance bidding behavior and overall campaign effectiveness. By prioritizing data-driven strategies and leveraging insights, marketers can unlock the full potential of their campaigns and achieve greater success.