วันพุธที่ 8 กรกฎาคม พ.ศ. 2552

Conversion Metrics 101 - "Defining Success"

 "If I told you once, I told you twice I've said a thousand times" is the reaction of my mother, when it seemed that I was not listening to his advice. To my defense, it was often heard, but the amount of advice exceeded my capacity to deal with. It 'was like drinking water from a hose.

 As the owner of the Internet, we are faced with ao situatie recconseils similar volumes on the management and development of our mercadoempresas. Marriage with the "need to know 'and' nice to know" requires effort. However, the identification of a need to know is essential in defining and ultimately success.

 For your online business is a fundamental need to know.

 Think about it ...

 His site has 5600 visitors last month and had a turnover of 26.

 MOIS Eun happened?

  You do not know, eh?

 The definition of "success" - the power of implementation

 Performance, measurable results gathered and calculated based on your online business systems (traffic, website and customer loyalty) and used for the determination of the total and the strengths and weaknesses and opportunities.

 As "key performance indicators" or "reference", and its importance ontmativement the same weight of financial ratios such as return on  investimentigenica and days sales outstanding for the assessment of the functioning of a traditional business performance. As a guide for the owner of a company Noqu to assess the effectiveness of their business strategies and a basis for defining future success.

 Furthermore, identification of parameters that the execution of the "gap" between what your business objectives today are tomorrow det. Without them, we are operativiuna ship without rudder evagar aimlessly in a vast virtual ocean. As business leaders, "said Thomas S. Monson,

 "When you measure improves performance. If the benefits are measured and reported, the rat, the improvement is accelerating."

 The first action

 Alternative performance for each company, however, five major popular figures are in line with business. These include:

 A. Conversion Rate

 B. Cost per visitor

 C. Cost per lead, or the possibility of referral

 D. Cost per customer

 E. Price per visitor

 If all the companies on the Internet focused on five key parameters of performance of their online businesses increasing exponentially. Why? Why ...

 "You can not manage what you can metenR".

 Five of the benefits of online business success

 All the site you have the choice of visitors. The choice is made by a visitor, a "conversion" DAST generates  two parameters: (1) and the cost of conversion (2) the conversion rate. The key is important for issues such as conversion page usually chosen by visitors to the achievement of its objectives.

 The five parameters realizarción Besoin know.

 A. Conversion Rate

 Google dictionary defines an exchange rate that the number of visitors who want a divided by the total number of visitors in a given period (usually monthly). "

 Formula: Desired Action / Total Visitors = Conversion Rate

 For example, if 1000 unique visitors from their site a search engine and 10 have opted to purchase a product, then your "sales" conversion rate is d1, 0%.

 Básicoaliado a conversion rate is calculated when a desired action by a visitor to your website. Examples include:

 • A user wrote in his e-mail address and click "Send" for your free report.

 • A user can click on your browser "Back" button to leave your site.

 • The user buys the product.

 The main types of conversion are directly linked to the achievement of their objectives.

 B. CUG posetioca

 The cost per person is the dollar amount Gastone drive a single visitor to your website.

 For example, if you spend $ 100 to drive 1000 visitors to your site, then the cost per person is $ 0.10.

Formula: The money spent / yy totalevisitatori dband l = Cost per visitor

 Companies often have more of a "visitor" or a way to drive visitors to their websites. Therefore, depending on what this analysis, the analysis of results, it is possible to calculate the cost per user ", using the money spent on a single source or multiple sources visitantestor visitor.

 C. Cost per prospect, lead, or referral

 The cost for each prospect, lead or ritem is the "cost per user the number of visitors unieke a vision, lead or referral.

 For example, if you spend $ 100 to drive 1000 visitors to your site, and produces 10 perspectiefHun "cost per prospect is $ 10.

 Formula: Value for total production = Cable Ante Visit

 D. Cost per customer

 "The cost to the customer" is "for visitantestor" times the number of unique visitors to a sale.

 For example, if you spend $ 100 a guidare 1000 visitors to your website and 2 in the sale, the cost per customer is $ 50.

 E. Value for Visitors

 The Price Visit Ante is one composite figure of a number of parameters, including the exchange rate, the average value per share is over, the number of unique visitors and number of parts.

 For example, if the 2 unique visitors in 1000 has achieved a sales turnover of $ 100 or $ 200 for gross income, then the value per visitator "is $ 0.20.

 Formula: Sales / total number of visitors = visitors value

 Well - why this?

 The "visitor value" shows what can be done by the visitors (ie, the cost per visitor) threshold on trade or investment in strategic marketing. If a visitor to your website at an average cost per user $ 0.10 and the average value per visitor "if $ 0.20 for each new user, you win $ 0.10 in gross profit.

 Note: The "value per visitor "metric is able to wear this soort analysis calculated on the basis of all kostenInbegrip illicit trafficking in materials and workmanship and the gross turnover.

 In addition to the internal strategic decision-making tool, the "value per visitor" metric can also be used to evaluate business opportunities outside.

 For example, if approached by a potential trading partner and the ability to receive visitors Miratin the 1000 investment of $ 150, you can calculate rapidamenteEningen half and use vanuw "value per visitor" metric basis.

 For example, the 1000 visitors of $ 150 investment is equal to a "cost per user of $ 0.15. With the average value per visitor" of $ 0.20 to earn about $ 25 per sale or $ 0, 05 for each visitor times in 1000 a total of $ 50.

 However, depending on the size of investments, you can suggererRIR your partner autobúsINESS one month after the test rather than a partnerschapong-term. With the implementation of a 'test', it is possible to collect data and calculate a value for each user, in particular for the operation to jump to the head in a long-term and potentially dangerous. To achieve measurable results of the negotiations to develop an economic partnership or try to pull the plug immediately, with a minimum loss det.

 Return on risk decisions.

 As Robert Kiyosaki sfacilitada in one of his best-seller ", is ignorant is dangerous." adapt their advice for your business online, consider this:

 "There are people who say that most of the time, new taxiways, strategies, website design, so risky. For them, this is true - but not because the new channels of traffic, strategies, web design, so risky. Estleur lack of knowledge monitoring, controllo and calculation of performance parameters that a risico walk. "

 How well you perform metricass advice that you need to know. "


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