Timothy Davis: evaluation

Transcript context

…Something that someone asked on Twitter is for benchmarks around any of the stuff. How do you know when your CPC is good? I guess you just look at... Do you look at Google telling you it's excellent versus poor? How do you know if your conversion rate is good? How do you know if your CAC is good? Yeah, every industry and every company is going to be different, healthcare, lawyers, those are some of the highest cost and average CPCs I've seen. If I was to compare that industry, say to a B2B industry, it would not be very good at all. Honestly, what I would tell the user to do, every single platform has partners available, more times than not, they're kind of like salespeople. I actually really like the partners that we have at Shopify, because I do feel that they are partners. Shout out to Francisco at Google, and Sami and Alana at Meta. And Nick, and Sam, and Brian at LinkedIn, in case they all hear this. But I think they're really great partners, and they will give you that information. They will actually say, "If you give me the five people you consider to be your top competitors, I will tell you if you are above or below a certain threshold. " Now they can't tell you CAC because they would have to have transparency into conversions. But click-through rate, conversion rate, cost per click, things like that, they will give you that information because they will anonymize it, so you won't know who is who. If you say, "My competitor's monday.com," they won't say, "monday.com has a click-through rate of 5%." They won't tell you that. But they will tell you, "Of the competitors you gave us, and we added three more in just to say, hey, we found some people." And also to where if you only give them two, you can be like, "Oh, it's one or the other." That they'll give you that information because they want you to succeed. Because if you succeed, you spend more money on their platform. So if you find out your average CPC is really high, take the actions that are in the account that tell you what you can do to lower it. But if you find out that you have a lower CPC, you're like, "Oh, great, I thought that was worse." And then you can communicate that internally to your team and say, "Hey, our average CPCs may seem high, but in reality we got with our partners, and we are on par with the industry." Got it. So the advice is, don't seek generic benchmarks for any of these metrics. You can talk to your rep at Google, Facebook, LinkedIn, et cetera. And they'll give you essentially the numbers-…

Stored transcript either side of the excerpt. The highlighted words are the published quote; the surrounding text is unedited source, never generated.