Analyzing And Fine Tuning Your Online Business
One of the main components of online marketing is the fine tuning and analysis of your business. Without this, you won’t know how to scale your business or how to adjust certain components. How else are you supposed to improve and expand?
With online marketing, there are a multitude of strategies that you can use to drive traffic in your direction and increase revenue. Having said that, these strategies are pointless if you have not done the correct analysis of your current processes and outcomes. Here are some tips to help you track your business and steer it in the right direction.
Distinguish between the visitors that are buying and those that are not. Know your conversion rate and your percentages. Track how many visitors you get to your site/promotion and how many of them convert into buying customers.
The typical conversion rate is calculated as follows: Number of sales divided by Number of visitors x 100. For example, I have had 10 sales from 90 customers. The conversion rate would be 11.1%.
Know how many customers opt out of your newsletter. If you have a newsletter running, you should pay close attention to how many opt out and unsubscribe. Knowing this will give you a better understanding of how much value you are providing with your emails. Simply put, you will know whether to change or maintain your newsletter content.
Know the performance rate of your website. This includes monitoring what pages are getting the most looks and tracking how long the average visitor spends on each page. Most website building software will provide this e.g. WordPress or Squarespace. Knowing this information can help you determine the effectiveness of your content and whether you need to make adjustments.
Find the average amount spent per customer. Finally, knowing how much each customer spends can help you adjust your advertising costs i.e. how much it will cost in advertising to obtain a new customer. This helps greatly in scaling your business.
For example, if you are spending an average of $20 in advertising to obtain 1 new customer and each customer spends an average of $10, then you desperately need to change your strategy.
© OBM Resource
