Top of Funnel Marketing Strategy: How to Get Conversions Using Cold Search Terms

John: 00:00:10

Today's topic is talking about top of funnel terms.

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A lot of the time we're like, we need to

focus on cold traffic in terms of Google,

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because we need to split out brand.

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We don't want to bid on brand because the

campaigns are focusing on brand and they

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don't convert as well for cold terms.

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So the conversation becomes, how do we

convert on cold terms and how do we stay?

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On well, it's not staying

on those cold terms.

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How do we keep new customers

on those cold terms?

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And do we want to keep new

customers on those cold terms?

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Then if we have returned customers on

those cold terms, why do we have them?

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Is it a good thing?

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Does that make sense?

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Probably just interfere

Whenever you feel necessary.

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Go ahead Karima.

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Can you differentiate

cold terms and warm terms?

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Could you elaborate that?

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Let's talk about mostly because I have

a skin care client so we're going to

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go, that's the example I'm going to

use and a supplement client, those

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are the examples I'm going to use.

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So let's talk about skin care.

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The cold term would be

purely like vitamin C serum.

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BeCause there's no brand.

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It's just purely a serum, right?

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Or retinol serum.

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All that random stuff that people

search for on the internet.

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Or best face wash.

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Something like that, right?

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Those are cold terms.

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That I'm talking about.

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And now, the question becomes, when

we're talking about cold terms.

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And I need whoever's going to

post this to blur everything.

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hold campaign where we've

removed brand completely.

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And it's the same setup.

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I always preach, but I'll get rid of

brand and let it run and leave it alone.

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Now I'll emphasize this and

start with saying that I launched

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this campaign on, when was it?

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July 18th.

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and I've made no changes

to these campaigns.

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If you look at the changes, it's just

like the build out of the campaign.

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Essentially July 14th,

18th was when it's on.

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Those are the changes here.

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And then 19th is the only change

I made, and the change I made

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was not even that, hold on.

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There was a budget change that

I made, that was realistically

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the only change I made.

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18th was launched, 19th, and the

budget increase was on the 31st.

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Does it, because the client

wanted to scale it, right?

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Other than that, this campaign hasn't

been touched, and as you can all

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see, conversions are on the rise.

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Good things to see, right?

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No thing.

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I haven't touched this campaign.

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It's just running.

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And we always run these campaigns

on low TROAS goals here.

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This for this client, we've just

set it to 50 percent as our target.

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And the reason we do that is so

there's enough space for Google

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to learn and not restrict itself.

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If it gets too high, if we set our

TROAS too high, it restricts itself.

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We end up with a finite audience and

the campaign eventually starts to die.

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In a situation like with the low TRS,

you might have a one bad week, two bad

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weeks, but it'll recover and you'll end

up just getting way more convergence.

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That's the process guys just go for it.

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Anyways, what we're talking about is

cold terms Now when we talk about people

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searching for products and brand terms

What's the one of the biggest assumptions

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you can make about a brand term?

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One is that people already know

of the brand because of the vast

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amount of marketing done on facebook

instagram Whatever right and they're

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coming back via google searching

for the brand to convert right?

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Technically those are new customers

But some majority of the time,

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they're not Google effort customers.

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Like I didn't put in the work for it.

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I just took credit for it, right?

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Because it's a branded conversion.

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But then there's situations like you

have where you can just people search

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for random cold terms and convert for

us, That's what we have going on here.

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So when we look at this makeup brand, it's

been running for a month now, actually.

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It's spending 4, 000 a day to start,

when we look at what converted

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for us in terms of terminology,

foundation for makeup, I don't even

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know how to pronounce this word.

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Clean makeup brands, face oil,

best lipstick, vitamin C, serum

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best foundation, skincare benefits.

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Like it doesn't get any colder

than this in terms of someone

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that does not know of your brand.

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Does everybody agree with that?

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Yes, no, head nods.

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Yeah.

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Yes.

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You're going to break your head like that.

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But yeah, so it doesn't

get any colder than that.

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So is it a fair assumption to

make that almost everyone that's

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converted here is going to be.

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A new customer that just found our

brand, clicked our ad and bought from us.

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Yes, I can see a trend there

that it's mostly well, it's

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almost all new customers, right?

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Yeah, but if you look at that all those

search terms probably three quarters

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of those search term has the word

best in it But that's not the point.

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We're trying to make here yet.

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Oh, no, just saying I can see

yeah Transaction keywords.

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But can we assume that let's just say

that On a like a perfect world, all

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these are new customers, Yeah, exactly.

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If they didn't know you exist,

why would they search for best?

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They're looking for the best.

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If they knew of you already, they

wouldn't type in best, would they?

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Yeah, so now let's look at

some basic Northbeam numbers.

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And all we're going to really

focus on is return, first time

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and return customers, right?

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So last 28 days, we're

going to look at here.

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Whenever Nord Stream decides to load.

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oh, there we go.

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Transaction.

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Okay, so now let's look at Google

Ads, And whenever it pops up.

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Okay.

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What do you see here in

terms of transactions?

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I of the funnel.

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So there's 356 first time transactions

in top of funnel and 45 or 42.

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We're not even get 45 from,

but 42 return transactions from

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the top of funnel campaign.

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But we just technically agreed that

people searching for that product had no

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idea what our brand was and they're just

converting on these cold terms, right?

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So what's happening here?

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Thoughts, theories, besides going

and Colby, you guys have a lot

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to talk because we already know.

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Don't shake your head at me, Colby.

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No.

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Maybe they are familiar with the brand

already, but they were searching for it.

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Yeah, you're spot on.

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customer, let's say I

am a customer, right?

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And I buy their vitamin C serum or

contour stick, And then 30 days later,

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I come and I search for something

like a vitamin C serum, right?

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I have already bought

from this brand, right?

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And now I see an ad that they also carry

another product that I want to buy from

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someone or from somewhere, but I see that

they've already bought from this brand.

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So is there a sense of familiarity

here where you're more likely

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to buy from this brand?

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Yes.

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Yes.

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that's what's essentially

happening here, right?

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So someone that came in through a

brand term initially, some form of

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cold term initially and came back and

then started looking for other products

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they wanted to buy or needed, right?

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They searched a cold term again,

And then they bought again,

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Does everybody follow that?

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So they basically bought a product that

A brand they trusted or have already

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that they didn't know that brand had

so they bought a product that they

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didn't know the brand had but they

already have product for this brand.

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Everybody follow that.

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Yes.

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Yes.

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So now how does this play into being?

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Is this good for us or is this bad for us?

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And I'll say that it depends.

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Okay, actually, I'll answer this

question in my opinion after.

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So is this good for us

or is this bad for us?

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Everybody can join in this now.

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Call me Glenn.

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This becomes a discussion at this point.

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gave it away.

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He says it depends.

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In what scenario does it depend?

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If I say this is good for us and I'll

give you this example of I don't know.

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We're talking skin care.

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Let's just continue skin care.

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We give continuous skin care.

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How is it good for us in that

sense of skincare brands?

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Maybe on the basis of

CAC, CAC is true value.

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So how much we are spending on those

already existing customers, which don't

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know about the product, which a brand

has, and they got through cold system.

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So maybe just because of CAC, we can.

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you're right, but the word

I wouldn't use would be cac.

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CAC would just be acquiring a customer.

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These are already existing customers.

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The word I would probably use is LTV,

let's say you bought said product

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one, and this is skincare products.

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People are gonna rebuy it, right?

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And the LTV for my first

product is a hundred dollars.

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Then all of a sudden you find out that.

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There's another product you like using

that you also buy with is product two

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and the LTV for that product is $150.

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What did my customer LTV become two 50.

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From 100 to two 50, correct.

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it's not a bad thing for them to come in.

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Now there's caveats to this as well where.

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It falls down to how often people return

and buy from us right for products

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they didn't know exist over here.

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I think you did the math and you

put in the chat that it was what

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you say 10 percent of the overlap.

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42 10.

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Okay, let's just go with 10.

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So right now we're saying out of all our

cold transactions 10 of people and this

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is a threshold that it will vary business

to people this will come business to

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people business to business 10 of the

people that are converting on cold turns

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did not know that we had another set of

products that they want, in my opinion 10

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is a good value in the skincare because

usually people have like Multiple skincare

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brands routine and products and their

routines So 10 percent in my opinion is

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a good number to have where I want to say

it's a business fail point But it could

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become a business fail point when We

have a lot of return customers coming in

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to buy other products from cold traffic

because they didn't know of the product

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So how does that become a business fail

point because the business didn't fail to

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educate their already existing customer

base That we have on their products

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whether it was through ads whether it

was through email Whatever it was, right?

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Promotions or whatever, right?

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Did they retarget or something like that?

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Does everybody follow along with that?

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Yes.

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Yeah, because if that ratio starts

getting worse, you know that your overall

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marketing and sales funnel, there's a kink

there because users are not educated and

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they're continuing to try to repurchase.

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So, I think with e commerce

People don't feel brand loyalty

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like they do with a car.

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Yeah, you buy something you might not

even remember buying of course email

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and everything's important But asama's

saying keep an eye on that ratio.

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Because if you don't keep

getting new customers That's when

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things will start to fizzle out.