1. Identifying the right keywords is the first yet an important factor in Adwords. If you can get the list of right keywords I am sure you are on the right track, Google uses exact matching as well as broad matching if you have the perfect list of keywords just enable exact matching and you will see great results.
2. Identifying your targeted audience is another important thing to do , this cannot be done in a day or two multiple days of active monitoring the tool as well tweaking it with users in mind is the best way to get optimized results. Also you need to vary your bids to change positions to see which position works best for you. For some advertisers it's important to bid the maximum to get optimized results but for others it's ok to get just on 1st page or even some advertisers get good returns advertising on 2nd page its good to test with different ad pricing to see which works best.
3. Writing a good advertising copy or quality ads is very important, good ads bring more click through which will result in better ROIs. When you have a combination of a good ad-copy with an optimized landing page I am sure your conversions will be great. Landing page should be exactly matching the way you describe in your ad-text if you can do it I am sure you can even reach conversions of 15 to 20%.
4. You need to constantly monitor your account progress. There are some good PPC management companies who are dedicated to doing this job. We at Search Engine Genie is one of the company that can handle your PPC management campaigns effectively our extensive knowledge in PPC management will help boost your PPC campaigns and will bring best ROI for your website. Your account needs to be properly organized and maintained. Good organized ad-groups, keywords; campaigns will help your Adwords campaign a lot.
5. Last but not the least your Adwords quality score is important for better positions and optimized running of your ads. Its important to get everything right to get high quality score we at Search Engine Genie maintain high quality scores for most of our clients which results in good traffic and conversions.