January 2011

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The only metric that matters in business is dollars in the bank. Everything else is secondary. How often do we check this figure to gauge how well we are doing? We use it to tell us how successful, proud or unhappy we should be with ourselves.

What are some of these secondary metrics?

Click Through Rate
CTR = Number of clicks a link or ad receives / Number of views

Conversion Rate
CR = Total Visitors / Total Conversions
Usually used in conjunction with a specific segment of traffic such as PPC or email marketing.

Visitor Value
VV = Total Visitors / Total Income

You’ll see a lot more metrics reported and discussed but these are the most powerful to get a basic understanding of initially. Get an overview of the forest before you start picking out individual trees.

Visitor value encompasses every other metric in such a way so that you could successfully manage a site based on this figure alone. Do something good brings more traffic and sales. As long as your VV is increasing you can be confident that your increased traffic is bringing in buyers too. With more traffic and a falling VV, you are probably bringing in the wrong kind of traffic.

On the other hand if your traffic is falling but your VV is rising, whatever you are doing is bringing in more buyers and less lookers. Keep it up.

Visitor value doesn’t give us much granularity especially if you are testing multiple aspects of the same site. There is no accurate way to tell which specific change is responsible for the increased VV.
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Post image for Buyer Personalities and Optimizing Your PPC Funnel

Not every visitor to your site is motivated by the same reason for their visit. Being able to identify each type of visitor to your site and engaging them in an offer targeted specifically to their needs will help increase your conversion rates across the board.  Knowing which personalities to target and which to try to avoid can give you the advantage to turn a profitable campaign into a million dollar auto-pilot salesman.

Mr. Know-What-I-Want

A man on a mission

He is the easiest to sell to. He knows what he wants and he’s prepared to purchase it today. He usually comes in with credit card in hand and doesn’t care what it costs if he can be finished shopping in the next three minutes.

He’s the in and out of the mall in fifteen minutes guy.

Give this guy what he wants on the first click or he’s gone. You likely will have only one chance to hook this guy, but once you do, he likely will come back and buy again as long as you provide a positive experience and fill a need.

Mr. Know-What-I-Want is going to take one look at your site and your product offer and make a quick judgment whether to waste his very valuable time.  Being a man, he is more visual, he may scan down the page and hit the bullet points or visuals and price first before investing more time. If you can keep him impressed and on the hook he will evaluate your offer for his immediate need and either purchase or move on. He will not waste your time with questions or clarifications, much less his.

Mrs. Find-the-Best-Deal

Weekend sale… Where?

Very similar to Mr. Know-What-I-Want, but instead of expediency, she will shop around for two weeks to save $10. Not only does she know what she wants, she knows what price is the best deal around at any given moment. She will wait the best sale or coupon and get the best deal she can. She will most likely be detail oriented, capable of comparing the features and fine print against your competitors like a pro.

She quite possibly, is married to Mr. Know-What-I-Want. Similar, but with different motives that drive most decisions. She can be sold to if your business model can handle low margin, high volume sales.  If you can’t compete with Walmart on price, she may be a hard sell unless your goods are somewhat unique or you have a unique value added service or offer to compete.

She shops for fun when she’s out with the gals, but can also be seen running through the parking lot trailing children.
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Optimizing Conversions in the Shopping Cart

January 27, 2011

This is one of the best visual examples of why repeated optimization audits and updates are so vital squeezing the most out of your website and sales processes. From the Get Elastic Ecommerce Blog: Improving Conversion After the Add-To-Cart. They performed the eye-tracking tests to prove it, but looking at the before and after photos […]

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PPC vs SEO vs Social Network Marketing

January 26, 2011

From PerryMarrshall.com this week: Why buy clicks when you can get ‘em for free? If your business isn’t a machine that you can invest in and generate more income out than what you put in, then you don’t have a business. You exist off of the generosity of others. Generosity that Google, Bing or Yahoo […]

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PPC Money Management and Blackjack

January 21, 2011
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So much of online advertising, PPC advertising especially, is about optimization and money management. Step 1: Put the biggest budget and most time into the campaigns with the best chance of making the most money. Step 2: Cut your loses on ALL losers after a respectable research stage. Step 3: Rinse and repeat with new […]

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