Recently I asked one of my clients what the numbers were for their website. You know, website stats.
Not surprisingly, she didn't know what I was talking about.
Too often, we focus on what we do best: running the company, generating content and creating products that people will pay for. I need to tell you a little secret: selling products online is no different than selling products offline...
You need to know your numbers.
Now some of you might be saying, "Ugghhh, I'm not good at math".
Let me tell you, it doesn't have to be difficult.
In order to have good months of sales, you need to learn the basics of your numbers so you can improve your results. After all, you can't improve what you don't measure!
Basically, there are four sets of numbers you need to know. Don't worry -- if I can teach you how to do this simply, you'll use it regularly (remember the
K-I-S-S method – keep it simple sweety?)
This is the NUMBER OF SALES you're making. This is a number you can get from your shopping cart, or take a look at your bank records to see how much has been deposited for a one month time period.
2. Unique Visitors
HOW MANY PEOPLE are visiting your sales page? You'll need to know your number of unique visitors (this is visitors who have not been to the page before) for each specific sales page.
DON'T confuse unique visitors with "hits". Hits are the number of clicks onto the page. For example, when a visitor calls up a web page with four graphics, that's five hits, one for the page and four for the graphics. For our calculations, hits aren't a good indication of Web traffic
Your Web host provider usually has these stats, and may already provide some for you. If they don't, ask them for these numbers. Some programs only track hits, so if this is the case, you'll want to have them set up some Google Analytics to show you your number of unique visitors. (I love Google Analytics – it tells you so much more about your visitor – even where they come from!)
3. Conversion Rate
This is the number of sales during a given time, divided by your number of visitors during that same time. It tells you how effective your sales page is at getting customers to buy.
# of sales / # of unique visitors = Conversion Rate
4. Customer Value
This tells you how much each visitor is worth to you. It's basically your selling price times your conversion rate. This tells you how much it's worth spending to get a visitor to your site. When you're thinking about using Google Adwords or Pay-Per-Click campaigns, you'll need to know this so you can determine how much to spend.
$elling Price X Conversion rate = Customer Value
Let's figure this out together:
Harry has a site that sells a Home Study system for $397.
Last month he had 10 online sales. His Web stats show that during that month he had 500 unique visitors to that sales page.
Harry's numbers are:
Sales conversion = # sales / visitors
10/500 = 0.02 (this is about 2%, or 2 sales for every 100 visitors)
$elling Price X Conversion rate = Customer Value
$397 X 2% = $7.94
Each visitor to Harry's Home Study System sales page is worth 7.94 cents, whether they buy or not.
This would be the maximum amount Harry would want to pay for each lead he receives.
How to INCREASE Your Numbers
If your numbers of unique visitors aren't as high as you'd like, work on attracting more traffic to your site. Some ways to do this are through your e-zine, improving search engine listings, placing ads, submitting articles, video, podcasts or press releases to submission sites. One easy way we submit these is by using Push Button Traffic at www.pushbuttoneasytraffic.com
The average for sales conversion rate for information products is only around 1%, according to the experts. Targeted traffic converts much higher, since they are already interested in your information and are more likely to buy. Having a list of targeted customers also increases your sales conversion rate. Don't be frustrated by low numbers. Instead, work on increase the traffic or targeting specific groups of potential clients.
Track any changes you make to your sales page so you can continually improve your results. That way you'll know what works and what doesn"t, so you can see results from simple changes to your sales page. Only make one change on a sales page at a time, so you know what caused the increase in sales.
You can't improve something you don't measure. Take a few minutes to start tracking these numbers. I guarantee that once you do, you'll start coming up with additional ways to improve them. AND, you'll begin to take note on what"s working and what"s not in your marketing. You'll know specifically what to invest in to INCREASE your income.
If you'd like to discover more ways to grow your business through marketing, book a 25-minute 'Attract More Boomers Strategy Session' with me: http://my.timedriver.com/QQPRL. Together, we'll come up with some ways to change your thought process so your business allows you to start living the life you've always looked forward to.