How to MAXIMIZE your cost per acquisition value ?

As Internet business owners, we are constantly bombarded with advice on how to manage, promote and grow our businesses. Because of the huge volume of information, we are compelled to weed through the “need to know” against the “nice to know.” We realize that identifying the “need to know” is crucial to achieving our goals.

Have a think about this.....

Last month, you spent $5,000 on advertising and promotions to send 15,000 visitors to your website and it generated 60 sales.

Did last month’s promotional activity move you closer to your goals?

You have no idea, right?

Well you “need to know.”

Why? Because you have to decide whether to invest more or less money on the same advertising strategy or to try out a brand new one next month.

And then you have to decide if your current website strategy motivates your visitors to act or if you need to adjust your website’s sales copy, headlines, pricing and layout.

In other words, you have decisions to make BUT no solid scientific data or information to guide you.

Discovering Your Way to Goal Achievement – Your Performance Metrics

Performance metrics are measures that evaluate the performance of your advertising and website strategies.

Also called “key performance indicators” - performance metrics form a dashboard to gauge the effectiveness of your current advertising and website strategies. They identify the “gap” between where you are today and where your business goals require you to be tomorrow.

You Need to Know These Three Performance Metrics

The following three performance metrics are essential for all web businesses.

* Conversion rate

* Cost per Action

* Value of a Buyer

If you concentrate on just these three, you will achieve your goals with confidence. Why? Because…

“You Cannot Manage What You Do Not Measure.”

Conversion Rate – Your Performance Lever

Website conversion is a process of turning website visitors into prospects and customers.

The most common website conversions or generically called “actions” include:

* Generating email opt-ins

* Producing product sales

* Signing up subscriptions

These actions produce measurable outcomes.

Ideally, the actions you want to measure are those most closely tied to the growth of your business; therefore product or service sales are the most common actions tracked.

The quality of your advertising strategies (e.g. Overture, Google Adwords, and Yahoo via natural search) and the efficiency of your website (e.g. sales copy, layout, and headlines) are measured by your conversion rate.

Your conversion rate evaluates: (1) the quality of the visitors attracted by your advertising strategies and (2) how satisfied your visitors are interacting with your website.

Your conversion rate is calculated as follows:

Formula: Completed Actions / Total Number of Visitors = Conversion Rate

It is important to use the same time range when gathering your completed actions and the total number of website visitors.

Measurement is KEY !

Identifying and measuring the KEY success metrics is absolutely essential to maximise your cost per client acquisition.

Remember you cannot manage what you cannot measure. Your website dash board is your key tool towards a successful website strategy being tested.

For more detail on this topic click here to contact us or call us Toll Free on 0800 646474 TODAY for a enlightening chat !