Precisely calculate the value of your website’s visitors
How do you figure out the value of each website visitor? The value of each surfer will vary depending on what type of products or services they are searching for. Therefore, you must be able to track the value of each search phrase that delivers potential clients to your website.
Measuring the value of each search phrase sounds much more complicated than it really is. Google Analytics can supply you with very detailed reports on traffic from all search engines in a very easy to understand report that is generated by you simply placing a small image tag on each page of your site.
Once the simple piece of Google Analytics code is inserted into your page you will be able to access reports that will show you what searches people come to your site on and where the people coming from each of the searches navigate on your site. By setting up goals and conversion page statuses in Analytics, you can successfully track which phrases are actually driving new customer contacts.
After several weeks the conversion report for your contact form will indicate which keywords are driving the most contacts. These high-performance keywords are the ones that you want to consider when you decide to set a sponsored listings on Google.
Here is an example scenario:
Bob installs Google Analytics on his website and a month later realizes that 24 hits coming to his site from searches on Google for “Evansville window replacement” have driven 4 of the contact form submissions and 1 sale he had received over the past week. He then does a search in Google for “Evansville window replacement” to see where his site is ranking and realizes he’s on the middle of Page 2.
After a bit of research following my guide, Bob realizes he can bid $1.45/click on Google Adwords and have his link show up in the first position. After spending $145.00 over 1 week Bob has received 100 sponsored listing clicks from Google for the phrase “Evansville window replacement” and generated 17 new sales information requests from website visitors. Of these 17 requests for information, Bob was able to close 3 deals.
Bob’s average profit on each deal was around $200.00. This provided bob with $600.00 of profit from 100 clicks (before backing out the ad send).
Bob’s Earnings Per Click (EPC) for the phrase “Evansville window replacement” is $6.00 and his Cost Per Click (CPC) is $1.45.
Bob’s expense per initial sales information request: $8.53
Bob’s overall average profit per initial sales information request: $35.00
Clearly if bidding on the phrase “Evansville window replacement” is costing $8.53 per lead and backing out to an average of $35 per lead profit you would continue to bid on this word, and possibly shift ad spend from lesser performing phrases to this one.
This ability to precisely measure the return on ad spend is the backbone of sponsored search listings. Because companies typically offer a variety of services they bid on 100s of different search keywords and phrases. In order to maximize your advertising spend you must be able to know which searches are generating you profit and which visits are returning less than you’re bidding per clicks.
Installing Analytics is easy and free
It takes only a few minutes to install on a website. The first reports become available 4 hours after the snippet of code is inserted.