Wednesday, March 26, 2008

How you can tell if your website is really working

The number one thing to do, once you have your website in place, is try and set up an analytics tool . A free and easy to use analytics tool is Google Analytics. Once this is done, you can:

- keep track of your visitors (total visits, unique visitors) and trends (i.e. what pages received more visits)
- analyze the demographics (i.e. geographical location of your visitors)
- measure how your visitors turn into buyers set-up a conversion goal (i.e. link your services page with your contact page). Also, let's assume you had 200 visits this month, 7 sales, and you made an average of $200.00 per sale. This means you conversion rate was 3.5% (200 divided by 7) which brought revenues of $1,400.00 (200 multiplied by 7). You can now set-up a goal of having a conversion rate of, let's say, 10%. By accomplishing this, you can increase your sales (based on the numbers above) by $2,600.00.
- measure your marketing ROI (return on investment)- in order to do so you need to set-up a PPC (pay per click campaign). Let's assume your marketing budget for this PPS campaign is 100$. You create a list of keywords and decide upon one set of words to use with Google Ads. Google will charge you $0.5 per click. This means that the 100$ you have as your PPC budget will suffice for 200 clicks (visits sent to your website by Google). Assuming a conversion rate of 10% (meaning 20 buyers) and and average profit per sale of $200.00, those 200 clicks generated $4,000.00 in sales. Your campaign cost was $100.00. This means that your marketing ROI was $3,900.00.
- create marketing plans to increase your marketing ROI, conversion rate, number of visitors etc.

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