Online Marketing – Measuring Effectiveness

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Have you ever heard it said that you cant manage or improve what you cannot measure? If you are marketing online and have any intention of making a lot of money, there is simply nothing that is more important than measuring what is working and what is not.

Being able to measure your business progress and understand the results of it is a skill you definitely need to obtain. The following tips will help you to learn how to do it right.

Firstly, you need to find out how much is your average customer worth. This is done simply by adding up how much did the customer cost you, and subtracting it from your initial revenue from a customer.

Just as an example, lets say you need to pay for 100 hits at 0.60 cents each in order to generate three sales at 55 dollars each. It means each of those customers costs about 20 dollars to generate. Each of those customers is 35 dollars worth.

Then you have to take into consideration the cost of processing the payment and other kinds of overhead. Once you are through with this process, you have a true idea of how much you are making from each customer. Then you are ready to move on to the second principle, which is measuring the lifetime value of each customer.

This takes time, but when you find it out, you will be able to figure out what you have to do – attract new clients or increase the lifetime value of existing ones. If you have other products and services your clients can benefit from, you factor the profits of those back into the equation.

Imagine you have got 1000 clients in your client list and 100 of them buy your language study package at 100 dollars. This means you add 10 dollars to the value of those clients, and this increases your value to 45 dollars.

Now as you are doing this, you will find that there are other variables involved, but this should give you an idea of the process. Once you know the worth of each customer, you can put together a plan for using the third measurement key. The third key is measuring the buying motivation of your established customers by asking them questions and sending them surveys. This is the most valuable way to measure your marketing process, because it will tell you exactly what to do next.

No matter how great you think your ideas are, in the end of the day only customers will decide what really works. This is the reason why it is better to find it out from them before you even start creating your product. If you understand what is every clients value and know how to make them purchase from you, you can avoid spending a fortune on your marketing and get you business to absolutely different level.

Tagged with: analytics • Business Online • companys performance • internet marketing • Marketing • measuring effectiveness • sales

Filed under: Marketing

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