Calculating Your PPC: A Guide for Plumbers
Hi there! it'sTyler Williams again, the owner of Mammoth Marketing for Plumbers. If you’re here, you’re probably wondering how to calculate and optimize your Pay-Per-Click (PPC) campaigns. Don’t worry—I’ve got you covered. PPC can feel like juggling flaming wrenches at first, but with the right tools and strategies, it’s manageable and can even be fun! Today, I’ll break down the essentials and show you how to use our PPC calculator to make data-driven decisions. Ready to dive in? Let’s get started.
Step 1: Start with the Right Tools
Before we get into the nitty-gritty, head over to tylerwilliams.net. In the resources section, you’ll find the PPC and Search Ads Calculator. This tool is designed to give you realistic benchmarks and help you estimate campaign outcomes based on industry averages. Remember, though, it’s a starting point—real results depend on continuous tuning.
Step 2: Understanding the Key Metrics
Let’s break down the components of a successful PPC campaign:
1. Cost Per Click (CPC):
How much does each click cost? If you’re targeting terms like “Plumber Near Me,” expect CPCs to range from $30 to $120 depending on your market.
2. Conversion Rate
What percentage of clicks become leads? A solid benchmark is around 15-20%, but this depends on your website’s design, trust factors, and user experience.
3. Average Ticket Value
How much does a typical job bring in? For plumbers, this can range from $500 to $1,500.
4. Booking Rate
How many leads turn into appointments? While many think it’s 70%, the real average hovers around 40%.
5. Close Rate
How many appointments turn into sales? A good range is 50-70%.
These metrics are like the gears in a machine. Adjusting any one of them can have a significant impact on your campaign results.
Step 3: Budgeting for Success
To plan your PPC budget, start with your revenue goals. Let’s say you’re a million-dollar company and want to allocate 10% of your revenue to marketing. If you decide to put 70% of that into PPC, you’re looking at $70,000 annually or about $5,833 monthly.
Small companies often start at $5,000, but larger companies might spend $20,000 or more. Don’t be alarmed if $5,000 feels like a lot. As your business grows, so will your marketing investment.
Step 4: Fine-Tuning Your Campaign
Let’s walk through an example. Imagine your average CPC is $70, your conversion rate is 17%, and your average ticket value is $800. If your booking rate is 40% and your close rate is 60%, you might find that your cost per lead is $411. Not great, right?
Here’s how to improve:
1. Lower CPC
Use tools like Google’s Keyword Planner to find lower-cost keywords or adjust your bidding strategy.
2. Boost Conversion Rates
Optimize your website with trust signals—high-quality photos, videos, reviews, and clear calls to action.
4. Increase Average Ticket Value
Gradually raise prices while delivering exceptional service.
5. Enhance Booking and Close Rates
Train your team to follow up aggressively and handle objections effectively.
After making these changes, your cost per lead could drop significantly, and your revenue could increase—all without increasing your ad spend.
Step 5: Measure, Adjust, Repeat
PPC success isn’t a one-and-done deal. It’s a process of continual refinement. Here are some tips:
1. Track Everything
Use call tracking, form submissions, and CRM tools to measure results.
2. Analyze Weak Spots
If your booking rate is low, review call recordings. If your close rate is low, evaluate your sales process.
3. Experiment
Test different ad copy, landing pages, and offers to see what resonates.
Common Challenges and How to Overcome Them
1. Low Booking Rates
Sometimes, the issue isn’t the leads but how your team handles them. Are they following up? Are they personable and persistent?
2. High CPCs
If competition is driving up costs, consider targeting niche services or less competitive areas.
3. Low Conversion Rates
Often caused by poorly designed landing pages or weak trust factors. Make sure your site builds confidence and encourages action.
Final Thoughts
Calculating your PPC campaigns isn’t rocket science, but it does require a blend of strategy, data, and good old-fashioned elbow grease. If this feels overwhelming, don’t sweat it. My team and I at Mammoth Marketing for Plumbers are here to help. We’ve worked with countless plumbers to optimize their campaigns and grow their businesses.
Schedule a consultation at TylerWilliams.net, and we’ll take a deep dive into your business to identify the levers you need to pull for success. Let’s build a strategy that drives revenue and keeps your vans running strong!
