Home > Networking, Online Marketing, Pay Per Click > How Do You Calculate The Value Of A Customer When Using Pay Per Click (PPC)?

How Do You Calculate The Value Of A Customer When Using Pay Per Click (PPC)?

retaining customers using pay per clickCustomers are the most important part of a business. The customers provide your businesses income, profits and build the respect of your business.  If there were a way to keep customers coming back to your website wouldn’t you use that option?  Pay per click (PPC) is an excellent tool to keep virtual feet coming through the virtual front door of your business.

If you are like most entrepreneurs, the one thing you want more than anything may be to attribute some real value to your online marketing. AKA- Show me the ROI! This is where pay per click marketing can really shine as a marketing tactic. As your website is seen when the user conducts a search, you are targeting potential customers at the search level when they are looking for products.

One of the most overlooked calculations in determining the ROI of pay per click (PPC) marketing is the value of  retaining a customer. If you are among the many who measure pay per click (PPC) return on investment solely on the purchases made directly from a search engine advertisement, the pay per click (PPC) accounts will not get credited with the subsequent repeat purchases.

Instead, think of ROI in terms such as: If the average customer makes three purchases a year, at a rate of $X per purchase, then the lifetime value of that ad click is $Y. To attribute only the first sale to a pay per click (PPC) campaign skews the overall value of your marketing investment, many times into the negative. By using this new calculation method, entrepreneurs find that using pay per click (PPC) can be quite profitable.

Repeat buyers dramatically increase the revenue potential of a website. When contemplating whether or not to use pay per click (PPC) marketing, make sure to include the value of retaining those customers into your ROI calculations.

  1. July 17, 2013 at 11:21 am

    You’ve astonishing knowlwdge on this web-site.

    • enertiamarketing
      July 17, 2013 at 11:41 am

      Thank you, and we agree! Hope to hear from you again!

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