BACKGROUND
Premier Power joined Varazo’s pay by performance program in October 2007. Designed to motivate prospects uncertain of our ability to improve their account
performance, this program allowed Premier Power to try our services risk-free. At the outset, internal staff at Premier Power ran Google advertising but
lacked the time to monitor market conditions and keep a rising cost per lead under $50.
WHAT WE DID
The program worked by measuring conversion performance before and after the service, calculating the return, and sharing half of the improved return.
We started by regrouping campaigns by target regions. We then applied conversion based keyword bidding through our proprietary software ClickSweeper to
optimize conversion performance. In the meantime, we increased keyword inventory and broke down the campaign into smaller ad groups with common keywords.
We started improving cost per lead and also generated more leads with a bigger budget.
After 6 months, the performance based program expired. However, Premier Power was impressed by our performance and extended the service with a new service
contract. The company had a good 2008 year and became a public company. In 2009, they signed a new contract with Varazo for extended services, including
search engine optimization, pay per click advertising, and phone call tracking.
RESULTS
Before Varazo began managing Premier Power’s paid search advertising, their cost per lead was $45.50 with a cost per click of $2.08. 3 months into our
performance based program, we were able to bring the cost per lead down to $31.19 with a cost per click of $1.38. At the same time, we increased
conversions from 102 to 131 per month. Varazo was able to generate 30% more leads while lowering ad spending by 10%.