April 2004
Trafficology Issue...
The Supplemental Materials
This month's TRAFFIC CONVERSION TUTORIAL:
Introduction
to Metrics
In
this month's Conversion Corner we introduce
you to the topic of Metrics. There is
no single thing that is more important
to the long term success of your eBusiness
than Metrics.
Quite
simply, as stated by Jack Welch, legendary
CEO of GE,
"If you don't measure it, it's a
hobby not a business."
Today we feature short a Q&A with
"The Metrics Man", Chip Tarver:
Metrics-Schmetrics - Why Should
I Care?
By Chip Tarver
Why Should You Care?
Some of the greatest marketers online
these days are learning to be satisfied
pulling a 1% response rate (which means
they lose 99% of their efforts.) That's
why you should care. If your best hopes
are being only 99% inefficient, every
little thing you do is paramount to your
success.
What Matters?
At the initial level, three things matter:
Visitor Value (VPV,) Conversion Rate (CR,)
and Return on Investment (ROI.) In addition,
there are three sets of metrics: Traffic
Metrics, Onsite Metrics, and Sales Metrics.
Here's an example of some basic math on
these ...
# exposures 1,000
cost per exp.@ $.10 $100.00
# visitors 100 (10% click-through)
# sales @ $20 5 (5% CR1 ... 5 / 100 visitors)
sales $ $100.00 (gross)
conversion rate 1/2% (CR2 ... 5 / 1,000 exposures)
visitor value $1.00 ($100 / 100 visitors)
ROI 0
Profit 0 (could even be negative)
The Bottom Line
So, it cost you $100 to make $100, so
you worked for nothing. That's why metrics
are important. That's why testing is important.
In the above example if you only improved
your CR2 by 1/2% ... now you made $100
because you sold ten products - not five.
As
you learn all the aspects of traffic in
Trafficology, knowing and improving your
metrics is the most important aspect of
it all. Your traffic is going to cost
whatever it costs, so you need to know
how to do your very best converting the
traffic into sales. Learn something new
every day to improve your conversion.
Your
copy and your offer are your team leaders.
And for the skills to improve your CRs,
there's no better teacher I know than
Alex Mandossian. And as you improve your
other numbers, your Visitor Value also
rises with your profits. So it's surely
in your best interest to pay close attention
to everything that affects your metrics.
Chip
Tarver
NitroMarketing
Affiliate Program Manager
http://www.Nitromarketing.com/g.o/ChipT
Read
the entire April Issue of Trafficology
at:
http://www.trafficology.com/apr04.html
Take
a 'Sneak-Peak' of the Trafficology
Private Members Only site today
for only $1
http://www.nitromarketing.com/trafficology.php
Best Regards,
Amy and Dearl
Editors
Trafficology.com
We welcome your feedback - just send it to:
feedback@trafficology.com
If you have some traffic ideas of your own, you
are welcome to submit them at the site and get
some free exposure in a future issue of Trafficology.
http://www.trafficology.com/ideas.html
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(c) 2004 by P&D Marketing, LLC. All Rights Reserved.
Nitro Marketing
2807 Allen St. Ste 668
Dallas, TX 75204
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