What to do when PPC brings in too many leads

An ad campaign generating too many leads is not a complaint you would think we hear very often in digital marketing, but sometimes when an ad campaign takes off it’s like trying to drink from a fire hose. We’re going to discuss common reactions and why trusting your advertising partner instead of your gut is the right decision.

I have too many leads, now what?

There are two common reactions when a client starts getting flooded with leads. The most common is “lower the budget”, the idea being that it’s easier to drink from a garden hose than a fire hose. The other is “pause the campaigns until we catch up”, which lets your incoming leads dry up.  Both of these strategies could work short-term, but neither is great for the long run.

Should I lower my budget if I get too many leads?

Let’s say your campaign is generating 100 leads for your current budget, but you can only really handle 50 leads a month. It would follow that spending half your budget would generate those 50 leads and put you into the sweet spot, but that’s almost never the case.

Looking at these 100 imaginary leads lets break them down into categories:

  • 50 are customers buying your introductory product/service at 20% profitablity
  • 30 are customers buying the upgraded product/service at 30% profitability
  • 20 are customers buying the elite version of your product/service at 50% profitability 

Cutting your budget could lead to you losing a competitive edge in the digital auctions that happen everytime someone searches for your product or service. This means you’d get your 50 leads but they’d look like this:

  • 30 introductory buyers at 20% profitability
  • 20 upgraded buyers at 30% profitability
  • 0 elite buyers at 50% profitability

Maintaining your budget while refocusing your targeting to your higher profitability clients means more profit for the same workload, and when you’re ready to grow, the introductory clients will be easier to get due to awareness and reputation.

This isn’t theoretical. We recently used this strategy with one of our clients who sees a seasonal influx in the summer, and we nearly doubled the average total spend per client, while allowing them to service their client load effectively. When the seasonality slowed down, we added the “introductory market” targeting back in and saw growth their because their “elite market” provided great feedback and awareness in the community.

Should I pause my campaign if I get too many leads?

Absolutely not. 

Pausing your budget is the best way to lose your position in the market. If your campaign is optimized to the point that you’re already only getting “elite customers,” then your budget should be reallocated from lead generation to awareness. Letting your pipeline dry up is a sure path to not having enough leads down the road.

While your company is growing to handle more leads, creating awareness in your client base is the best way to ensure that when we move the budget back into lead generation that you get cost effective clients that are already in your sales funnel.

Another real-world example of this is a Mediaura client partner who had a 3-month wait time. While this was acceptable for some customers, others were visiting the new competitor in town. Our strategy was to reallocate some of the lead generation budget into a “hometown hero” awareness campaign. We acknowledged that there was a new business in town, but reminded customers that our client gave back to the community, had years of experience, and was locally owned. This campaign grew their organic audience and inadvertently grew their leads in spite of the wait time.

So what should I do if I have too many leads?

Every client Mediaura partners with is facing unique challenges. Our team of marketing strategists will learn your business, both from a technical audit, but also from you. We can find the opportunities for you to optimize your budget for future growth both in quality and quantity because we only work with clients we believe in. 

Contact us today for a complimentary audit. Trust us; it will be worth it.

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