This is where we earn our bread and butter. In determining the overall value of the internet marketing strategy, the ROI (Return on Investment) of your website must be determined. In doing that, Web Analytics will have been previously setup and recording important goal setting information over a period of time. Goals are actions that visitors complete. For example, a visitor signups for something such as a newsletter, request information and is ultimately a sale such as through a online shopping cart.
There may be a number of things a visitor may do to create a goal value such as:
A visitor may signup for a news letter arriving at a thank you page.
A visitor may signup on a shopping cart and arrive at a thank you page on completion of the sales process.
A visitor may download a free ebook or white paper with or without giving their email address. A visitor may sign up to your email list.
Even a visitor just viewing a video or a page on your website is giving a value.
How do you determine the value of a goal? If your website sells a product or service, determining the value may be easy. The profit value of an individual sale or if it is a lead the converts to a sale, how many leads it takes to convert to sale (on the average).
For example, if it takes 20% of the leads on the average to convert to a sale and each conversion (on average) is $100, the value of a lead is .2 x $100 giving the goal value of $20. Meaning, the ROI is $20. For a more accurate ROI, you were to consider a more long term time-line measurement, for example, 1 year.
For things like free signups to News letters, blog posts, e book downloads, if 10% become customers for your product or service and you make $100 per customer (on the average), then the ROI is calculated at .1 x 100 or $10.
Another important question that must be asked is: How often has your site achieved goals such as the thank you page after a sale is completed on a shopping cart or a lead signs up for to your mailing list? We will answer that question from Google analytics for the number of visitors going to a given page, where the visitors are coming from and conversions. Especially on paid advertising, measuring the ROI has been proven invaluable. Conversions and ROI can be calculated on an ad per ad basis to determine which ones have proven valuable and which ones are lemons. By gathering this data over time, the effectiveness of a custom marketing strategy will determined. Once we have the current metrics, the next step #6 (Website Optimization) will take your website to a next level by enhancing what is working and throwing out the losers.
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