In 2020, B2B digital marketing spending exceeded $ 8 billion and accounted for on average 11.3% of company budgets. While these numbers are expected to increase in 2021, only 1 in 5 B2B brands are successfully tracking the ROI of their paid media campaigns.
Marketing attribution has always been a challenge for companies with multiple touchpoints in the customer journey. For some B2B companies, this journey often takes place across multiple devices and can last anywhere from a few weeks to several months. Some large software engineering companies go through Tendering process for a year before they actually earn any income.
When the buying process is so long and you are running PPC campaigns that don’t immediately generate sales when your leads convert, how do you know the true value of your digital marketing spend?
Closed-loop attribution is the answer.
Regardless of its niche or vertical, no B2B business will grow and increase conversions without a full picture of its users’ interactions at every touchpoint, from the first click to the final contract. It might take a little more work, but coming full circle is the surest way to unlock the possibilities of dominating paid search.
What closed-loop analytics tell you
Closed-loop analysis, also known as closed-loop marketing, is the process of comparing data between two or more analysis tools. In the case of PPC campaigns, this means closing the loop between your Google Analytics data and the data captured by your sales team in your CRM.
The most common mistake B2B businesses make with Google Ads and Facebook Ads is to not complete the loop before launching their campaigns. They invest large sums in digital advertising platforms, but make it impossible to quantify which channels offer the most value.
Let’s say your B2B business spends $ 5,000 on Google Ads to get 100 clicks. Here is some information you might want to know about these visitors:
- What exactly did they do when they came to your website?
- What ad, keyword, or piece of content marketing pushed them down the funnel?
- Have they performed micro-conversions, such as clicking on some high-value landing pages or starting a live chat?
- How many visitors who filled out a submission form became customers?
- Which of these customers generated the most revenue for your brand?
Closed-loop analysis will give you the answers to these questions, and this knowledge will help you optimize your future PPC campaigns in order to drive the most qualified traffic to your website and improve the overall ROI of your digital marketing budget.
Why Google Analytics is not enough to measure the success of your PPC campaigns
Too many B2B companies rely solely on Google Analytics to measure the success of their campaigns. Ecommerce businesses are able to do this because when an item on their website converts, they immediately know the amount of revenue.
B2B companies, however, cannot rely on this same analytical model. Here’s why:
- Google Analytics tracks visitors only from the initial website landing to lead conversion.
- Google Analytics’ basic conversion options are not enough to keep up with longer sales cycles.
- Google Ads will only provide Google Click IDs for clicks that are less than 30 days old.
- Anything over 30 days is erased and you can no longer get that digital marketing data.
Until Google makes it easier for businesses with longer sales cycles to measure the value of their clicks, closed-loop analysis is essential.
Over the past decade, digital marketing spend has evolved into strategies that deliver quantifiable return, and setting up closed-loop analytics on your campaigns can help your marketing team focus on the most digital channels. profitable.
Improving your analytics also allows your marketing and sales teams to collaborate more closely to understand and improve the customer journey.
How to configure closed loop analysis
How you implement closed-loop analytics on your PPC campaigns will depend on your B2B’s CRM platforms and Tag Management System (TMS).
Your Google Analytics data is funneled into your CRM so your sales and marketing teams know exactly which PPC campaigns, keywords, ads, or landing pages are attracting the most valuable customers, even if the user interacts with those sources months before. the final contract.
Ideally, your sales team should track when website visitors convert to leads, whether through a submission form or other CTA, and when those same leads become customers.
Here is an overview of how to configure closed-loop analysis:
- Add a script to your website that extracts customer ID from users when they submit a lead generation form (you can use Google Tag Manager).
- Customize the form to automatically send this customer ID to your CRM.
- Use CRM integrations or plugins to export your personalized events (for example, when prospects become customers) to Google Analytics.
Once your CRM data is integrated into your Google Analytics reports, you will have a more holistic view of the most successful PPC campaigns. Redeploy campaign settings or keyword targeting in future campaigns to continue driving qualified traffic and high-value leads over the long term.
The greatest value proposition of closed-loop analytics
For B2B businesses, a lot of things go into the sales cycle; Closed-loop analysis allows you to analyze and capitalize on every part of it, even when there are large time gaps between the different stages of the sales process. Having your marketing and sales teams and platforms work together will give you the precise metrics you need to refine your paid search campaigns and ensure that your investment is worth it.