You know that marketing and sales is worth spending money on. But, what about analytics and metrics? Most businesses believe that, as long as sales are coming in the door, they’re doing fine. The reality is that these businesses are one month away from being out of business – even when sales are substantial. Here’s why metrics are so important and how they influence and inform your marketing and sales departments.
Conversion Helps Inform Marketing Ad Spend
One of the best reasons to start using website analytics is to inform your marketing ad spend. When you don’t know how well your site is converting, you have no idea whether it’s worth it to spend money on marketing – weird right?
According to conversion tracking and lead management company Blitz, tracking your phone sales, website sales, and old-school mail-in replies are the most important aspects of any marketing campaign. Yet, even in this day and age, many businesses resist website (and other) analytics. Why? Time and money.
Many businesses either don’t think they have the time, or they don’t have the money to spend on managed solutions for analytics. But, skimping out here follows the law of diminishing returns. You’ll often spend more money on marketing than you should, and that money could be spent on analytics software with some left over for optimization.
When you know, for example, that a marketing piece converts at a paltry .01 percent, you know that you need to start testing different headlines. It’s not enough that you make 100 sales this month and can pay your company’s bills. You never want to hang onto such dismal conversion numbers, because these are exactly the kind of weak ads that eventually start to convert less and less. Then what will you do?
Your Bounce Rate Speaks Volumes About Your Content Quality
You’ve heard the phrase “content is king,” right? Of course you have. You’ve probably also heard that quality content counts. Well, the way you measure quality content is (at least partially) through time on site metrics.
In other words, when a visitor comes to your site, how long does he or she stay there before leaving (called “bouncing”)? If your bounce rates are 50 percent or higher, it means that most of the people who come to your site aren’t staying – not good. Your content needs a quality upgrade.
Ideally, your bounce rate would be 0 percent, but realistically anything under 50 percent is doing well.
Setting Goals Helps You Design Good Website Interfaces
Setting goals within analytics software programs helps you direct your website interface. In other words, it helps inform design and sales functions on the site. Let’s say you set a goal of getting 100 Facebook “likes” for a particular post. But, your Facebook social icons are placed at the bottom of posts. You notice that you are having trouble meeting your goal.
So, you move the social icon to the top of the post and the goals are smashed within days. This is an example of how to use goals in analytics to alter your design, improve usability of the site and, ultimately, garner SEO points with Google (and others).
Michell Redmon has a fascination for marketing. An avid writer, he likes to help new business owners by posting information online. You can read his helpful articles on many top websites and blog sites.