The Google Tax
The customer may be right, but are you doing the right marketing, getting the right information and acquiring the customer in the right way?
Posted by Open Plus Team, 27th June 2011
Google have established themselves in the enviable position of being a Cost Per Acquisition (CPA) tax on retailers and e-commerce businesses. Each month merchants find themselves having to pour cash into the Google Tax or watch your revenue dry up.
But before you start bashing Google, have you considered why this happens?
If your CPA is increasingly eating into your margin and your marketing promotions are showing lacklustre results, the problem isn't the Google Tax, it's poor customer profiling.
Tax Avoidance is Good
Paying Google can help you acquire customers, but if you don't have the systems to tell you who your customers, what they're doing online and what they want, then the Google Tax is the road to ruin.
If you think the Google Tax is killing your business, then think about this. What are you in business for? If 'the customer' isn't your first priority, then pack up now.
If your customers are at the top of your list, then isn't it about time you took intelligent steps to work out who exactly they are?
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