(And spoiler alert – they're more common than you might think!)
1. Marketing & Sales Teams Disconnect
A common issue in many companies is a lack of communication between marketing and sales.
At least, until a problem arises and fingers start pointing.
The typical sales cycle is expected to resemble this:
This intricate buying journey is like peeling back a massive onion – the kind that brings tears to your eyes.
It might feel overwhelming to consider.
Here are a few questions each team should ponder to initiate conversation and peel back those layers.
- How long is the sales cycle actually vs. my expectations of an ideal sales cycle?
- When does the responsibility of leads transfer from marketing to sales?
- Are there any key trends coming up in unqualified leads?
- How long does it take for sales to contact an initial lead?
- Are there any pain points discussed between sales and an initial lead?
This is a strategic dialogue that doesn't necessarily pertain to PPC but rather to the overall business.
2. Misalignment of Ideal Vs. Actual Sales Cycle Timelines
Do you know the average sales cycle timeline for your client or business?
More importantly, have you ever asked the sales team how they arrived at that conclusion?
This disconnect is something I've encountered all too often as both an agency marketer and an in-house practitioner:
Sales cycle timelines are often based on assumptions rather than actual data!
For PPC managers, data is paramount for decision-making.
So, sales cycle timelines not grounded in actual data can sound absurd, right?
The issue of not knowing a company's average sales cycle can hinder any PPC program, but this isn't due to the PPC program itself.
Let's delve into an example.
In this scenario, a PPC program achieves its monthly goal of 50 leads. The communicated assumed sales cycle timeline is 30 days.
After 30 days, the sales team blames marketing for the leads not converting into paying customers.
As a PPC manager, you immediately investigate to unearth the root cause of the issue:
- Are the keywords not aligned?
- Is the target audience qualified?
- Does the ad copy align with the offer?
After extensive investigation and discussions with the sales team, it's revealed that the average sales cycle actually spans 60-90 days – not 30.
So, what's the implication of this revelation?
The fact that leads aren't converting after 30 days isn't necessarily a PPC problem. The user is likely only a third or halfway through their buying journey!
Now that there's concrete data behind the sales cycle timeline, what's the next step?
The key is to recalibrate expectations within the PPC program. For instance:
- If a PPC program brings in 50 leads in one month, the actual conclusion of quality leads won’t be known until 60-90 days after
- If a client is asked to increase the budget by 50% overnight, the volume of leads will likely increase. That doesn’t mean the sales cycle timeline speeds up as well.
This section directly correlates with point #1.
A shift of responsibility from marketing to sales will always occur.
In this context, marketing's role is to attract qualified leads, while sales' role is to convert them to customers within an average of 90 days.
The other crucial aspect is to establish realistic expectations with the sales team, along with frequent result communication.
3. Sometimes, Budget Is The Main Issue
When was the last time an audit was conducted on unqualified leads?
I recently engaged in this exercise with a client. We specifically examined PPC leads because the team was informed they were unqualified.
Do you sense a recurring theme here?
The findings were astounding:
- 85% were unqualified due to “budget.”
- 10% were unqualified due to no contact/follow-up from the sales team. (What?)
- 5% were unqualified because the company wasn’t a good fit.
Even after several tumultuous years in the market, much of which can be attributed to external factors like the pandemic, buyer behavior continues to evolve.
While many companies may genuinely express interest in a product or service, they might not currently possess the budget.
Should budget concerns be grounds to disqualify these leads?
A strategic shift could involve categorizing these leads as having a "budget issue."
Although it may take time for most businesses to return to a semblance of normalcy, these previously "unqualified" companies could turn out to be your most valuable customers.
The key is to follow up if budget is truly the only issue.
Another strategic adjustment could involve evaluating your pricing model.
If a majority of leads are unqualified due to budget, this could indicate a perceived market value issue rather than a failure of PPC not performing.
4. High-Volume Keywords Are Driving Ineffective Leads
Quantity of leads doesn’t always equate to quality leads.
When campaigns are performing well and meeting lead volume targets, things generally run smoothly.
However, when leads aren't converting – even after considering points 1 to 3 – it's time to delve deeper into the campaigns.
When scrutinizing PPC campaigns, it's simpler to pinpoint an outlier when a handful of keywords are responsible for most of your leads. Start there.
If a campaign is bidding on broad, high-traffic keywords, the issue might lie with the keyword itself.
Ask yourself these questions:
- Is the keyword too broad in nature?
- What is the intent of the search?
- Who’s my target audience?
- Are there negative keyword lists in place?
Sometimes making simple shifts to the target audience in Search campaigns can yield effective results.
For instance, imagine your campaign bids on the term "industrial double-sided tape" without audience or demographic specifications.
Even if you're aware that your audience mainly consists of B2B manufacturers, a query like that is likely to attract numerous consumer impressions and clicks.
Why?
Because Google will show that ad to anyone who searches the query, regardless of intent.
Due to the loosening of match type constraints, Google can now match a query based on perceived user intent.
For instance, a user searching "heavy-duty double-sided tape" might see an ad for the original "industrial double-sided tape" keyword.
It's your targeting parameters that determine who views the ad for this query.
While the number of leads might decrease, their quality will probably increase.
Find additional ways to improve demographic targeting.
5. Sometimes, A Company Just Isn’t A Good Fit
There will always be leads that just aren’t a good fit for the client.
No PPC program should be expected to generate exclusively qualified leads. Given today's automation in PPC campaigns, it's practically impossible. Have you heard of Performance Max?
In relation to point #4, it's always wise to reassess the keywords a campaign is bidding on to optimize account efficiency.
Revisit the fundamentals and compare original keywords to search terms.
- Has the industry changed in recent months or years, and has keyword relevancy changed?
- Are there other ways users are searching for your product or service that you’re not bidding on?
Adapting keyword strategy to focus on lower-volume, high-intent searches might yield more high-quality leads.
However, there still needs to be a balance between quality and quantity of leads.
If narrowing down keywords improves quality but leads to a quantity shortfall, it's time to explore additional avenues to expand the PPC program.
Conclusion
When a channel like PPC is entrusted with delivering quality leads but fails to do so, it's easy to react with alarm or lay blame.
What isn't always easy is stepping back to evaluate all options – including involving other teams and posing challenging questions.
Better questions lead to better answers and potential untapped opportunities.
It’s a chance to understand the business better.
Ultimately, these types of questions make you an invaluable asset to the business.
