One of the biggest mistakes that newbies make when taking their first steps into Google AdWords is not tracking the results. But this doesn't only happen with Google AdWords but with all new types of marketing. The majority of people and companies do not track their results or do not track properly.
When people start tracking their marketing it is all too common that the wrong results are being monitored. For example if you start a new marketing campaign and notice that your website traffic increases by 50% this must be a positive result... Not quite. Just because your website gets more visitors doesn't mean that you get more money.
When monitoring your marketing it is vital that you monitor your profit, not your turnover or the number of visitors to your website. The only true representation of how successful your marketing has been is how much profit you have made.
There are many ways you can start tracking your marketing, if your customers phone you up to place an order or enquire about your products. You can simply ask them, how did you find us? Which search engine did you use? What search term did you use?
Using this method you can generate good results although you allways get some customers who was handed your info by someone else and some people just don't seem to remember how they found you.
If you are selling your products online using a e-commerce shopping cart or even a service like Paypal you can track every step a visitor makes all the way through to purchase. Google has their own monitoring tool called Google Analytics. This tool allows you to monitor every visitor into your website, you can see what traffic sources provide your visitors, how many pages they visit, which page do the leave on.
Google Analytics has a powerful tool called Conversions, you can define what you class as a conversion for example this maybe the thank you page after someone has purchased one of your products, it may be the thank you page after someone has joined your mailing list or subscribed to your newsletter.
You can then take this a step further and create a sequence of conversions, this is often called a sales funnel. You may for example set up a conversion for when someone enters their name and email into your squeeze page. A second conversion may then exist on the page containing how to buy your product and finally and conversion at the end of a shopping cart.
Using this method you can see how many people get to your squeeze page, who then goes on to find out more and finally the percentage of visitors who go on to purchase one of your products.
When you are successfully tracking your marketing campaigns you will always know which keywords from which traffic sources are generating you the most profit. You can identify what does not work, ignore it and then concentrate on your marketing that gives you the best results.
I wish you all the best.