Track Your Conversion Tracking
Master Conversion tracking and increase your ROI
Master Conversion tracking and increase your ROI
It’s a no-brainer that in Internet marketing state tha the most important thing is testing its effectiveness. In order to see if your marketing method is working you need some way to measure it, right? The best way to measure it is by measuring how much a conversion costs the marketer, making it cheaper and hence increasing the ROI.
A conversion can be defined in several ways. It all depends on what you want the user to do on your website. Do you want him to buy a product, register for your website/newsletter or simply clicking a certain button on the website.? Let’s say you decide sale is the conversion.
Let’s say for example, that if you have 1,000 users entering your website and 10 of them buy a product from it, you get a conversion rate of 1/100 or 1%. From there on you know how much a conversion costs you. Let’s expand my previous example. If it cost you $1,000 to bring those 1,000 users to your website and 10 of them bought the product the cost per conversion is $100 ( that is to say, the cost to bring all your traffic divided by the number of conversions).
Now you can calculate if your website is profitable or not. If the product those 10 users bought costs more then $100, you’ve made money on it.If it's less than $100, you should reconsider your marketing method and find a cheaper way to bring traffic to your website.
Keep Moving on to the next definition: ROI.
ROI stands for Return On Investment. In order to calculate your ROI, you need to know how much you earned from selling those products. let's Let's say they cost $110 each for your users. If it cost $1000 you to bring 1,000 users and you had 10 sales of $110 each ( total of $1,100 ) then your ROI is 10% ( you invested $1,000 in order to earn $1,100). Not bad, but can stand some improvement.
In order to increase that ROI, a few things can be done. You can either increase the price of your product, pay less to rope in your traffic, or optimize your website to increase your conversion rate ( meaning you'll have more sales per number of users coming to your website). For instance, if you increased your conversion rate to 1.5% ( an increase of 50%), then for each 1000 users, 15 people are buying the product making a total sales of $1150 and increasing your ROI by 50% to 15%. Not rocket science, but very important.
Conversion rates and ROI are of top importance for any business and especially online businesses. Learn to master these numbers and boost your sales.
I’ve written up a special report entitled "10 Deadly Mistakes Affiliates Make and How to Avoid Them" to help you get started with your online business. Download it free here: http://www.CBNotifier.com/report.asp?ref=ezinearicles
About the Author
http://www.CBNotifier.com Shlomo participates in many internet projects and initiatives as a full time internet marketer.
Tell others about
this page:
Comments? Questions? Email Here