The Real Value of Your PPC Leads is in the ROI
Do you want to know if your PPC ads are working? Using REW CRM's Sources feature makes it easier to measure the real results of your campaigns. Leveraging this powerful tool is a way to promote a shift of focus from metrics like cost per lead (CPC) to return on investment (ROI) as the best measure of success.
Measure ROI with REW CRM
REW CRM's Sources is a feature that allows agents and team leaders to track the ROI of their marketing efforts, including PPC ads. How does it work? When you accurately log your marketing channels (PPC, Email Campaign, Social Media, etc.) on Sources and input all your deals on REW Deals, the CRM can automatically compute your PPC's ROI. With REW CRM's Sources, you also have the ability to track your PPC campaigns' cost per lead (CPC), cost per deal (CPD), cost per acquisition (CPA), conversion rate, and more. While these key metrics are important in optimizing your marketing strategy, ROI is the holy grail of marketing insights and the best indicator of your PPC's performance. At the end of the day, a high CPC or CPA is acceptable as long as your ROI is higher than these costs.
REW CRM's Source View displaying Google PPC's ROI and other key metrics.
It's easier to see why you should shift to ROI with a real example. Let’s say you spend $1,000 on a PPC campaign, and that campaign brings in 10 leads, that makes your cost per lead, $100. If only one of those leads turns into a closed deal and that lead earns you $3,000 in commission, then that's already a good investment. Some might look at the $100 per lead and think it’s expensive, but when you think about it, was it worth it? You spent $1,000, and you made $3,000. That’s a 3-to-1 return, even if the other 9 leads never convert.
Now, what if 2 more leads from that same group turn into deals later? Suddenly, your return jumps to $9,000 on a $1,000 spend. That’s a 9-to-1 ROI. That’s why ROI tells the real story. Cost per lead just shows what you paid, but ROI shows what you earned. Check out our CEO, Morgan Carey's forum post explaining further why we made the switch to ROI-focused reporting. Make sure to also read our blog post about decoding the most popular PPC terms if you're unfamiliar with some of the lingo.
Please take note that if you're a Real Estate Webmasters' PPC client, our team will take over setting up PPC on Sources and log your spending for you in the CRM every month.
Setting Up PPC in Sources
Setting up PPC as a source in REW CRM is simple and easy. Here's how:
1. Log in to REW CRM and select "Sources" on the top menu bar.
2. Click the "+ New Source" button at the top right corner of the screen.
3. In the new window, put "Google PPC" in the Source Name field, add a description, and pick a label color.
4. Next, type "Google PPC" as the Referer. It is important to do this step so the CRM can automatically tag all net new leads from Google Adwords directly to the source.
5. Click the "Log Spend" button at the bottom of the screen.
6. Input the timeframe and spend amount in the pop-up window, and click "Log."
7. Hit "Save."
Think we're done? Not yet! Don't forget to log your deals in the CRM to make sure all leads are captured. Start a new deal under REW CRM's "Deals" every time you successfully book an in-person appointment and log past deals under the "Closed" tab. Explore our REW Deals blog post to learn how to add and update your deals in REW CRM. When you accurately log your deals and sources, everything ties up together, allowing you to calculate the ROI and effectiveness of your PPC campaigns.
Add Past PPC Leads in Sources
Have you only started using Sources recently? Don't worry, you can easily add previous PPC leads in Sources by following these steps:
1. Head over to the 'Leads" section in REW CRM.
2. Click the "Lead Filters" button on the top left side of the screen. A pop-up window will appear on the where you can apply different filters.
3. In the "Add a Filter" dropdown menu, select "Referer" and the "is" option. Input "Google PPC" in the field.
4. Go back to the "Add a Filter" dropdown menu, and this time, select "Sources." Choose "does not have, "and type "Google PPC." (If you used a different name for your Source Name, type that instead)
5. Click "Apply."
6. Once the Leads list is generated, select all by ticking the "Leads, Contacts & Clients" box.
7. Click the "More" dropdown button and select "Sources."
8. Finally, click "Google PPC" and hit 'Save Changes."
You only have to set up PPC as a source once, and all of your PPC leads will automatically be tagged accordingly from then on. But remember, you have to log all your deals properly to get an accurate calculation of your PPC's ROI and other metrics!
Best Practices for Leveraging Sources
We want you to maximize the benefits of using REW CRM's Sources feature, so make sure to follow these best practices:
- Track spending regularly: Always track your PPC spending and log it in Sources. Without this information, the CRM cannot compute your campaign's ROI.
- Log deals consistently: Make it a habit to log your deals in REW CRM and fill out all the details needed per deal stage.
- Add past PPC leads: Backfill historical data by tagging previous PPC leads in the Google PPC source. Doing this ensures more accurate tracking of ROI and other key metrics.
- Focus on ROI, not CPL: Measure your PPC's success by its return on investment (ROI), not cost per lead (CPL).
- Encourage agent accountability: Train agents to use the CRM for transparency and accountability. As our CEO Morgan Carey says, "If it's not in the CRM, then it did not happen."
- Regularly review your data: Adjust your strategies and reallocate budgets based on your PPC performance.
Analyze crucial PPC metrics using Source View.
Learn More!
Visit the REW Academy and Resources page to access numerous guides, tutorials, and video walkthroughs on REW CRM's Sources feature. These pages are updated regularly to keep you on top of the latest releases and provide you with the materials needed to master our CRM's powerful tools. Plus, PPC enthusiasts can also find articles and webinar replays that will help them level up their PPC knowledge and skills. Bookmark these pages and take advantage of these free materials!
Don't forget to also join the REW Forum to connect with other real estate professionals, share your insights, learn about the latest happenings, and ask your questions. We look forward to having you in the community!
CEO Morgan Carey's forum post on switching to ROI focused reporting for measuring PPC ads' success.
REW CRM's Sources FAQ
Why is ROI better than cost per lead (CPL)?
You should focus on ROI because it shows what you actually earn, not just what you spend. CPL only tells part of the story..
How does REW CRM help track ROI?
REW CRM's Sources feature connects your leads, deals, and marketing spend, making it possible to calculate your ROI and determine of your campaign is working.
What if my PPC leads take months to close?
That’s normal in real estate. ROI improves over time, which is why it’s important to track and log deals and spend long-term, not just short-term.