The ‘Measurability Factor’
Measurable Outcomes
When I think of digital marketing & it’s key benefits one of the first things that springs to mind is the word ‘measurable’. In fact this powerful advantage is one of the main differences between digital marketing & it’s less quantifiable counterpart of traditional marketing. Indeed there is alot of evidence in both the offline & online arena to support this claim. Some would even describe it as the single most important USP (unique selling point) of digital marketing. Consequently, this unique advantage should not be underestimated by business owners who dare enter the vast albeit highly assesable digital marketing arena.
When embarking on a digital marketing campaign for any business it’s worth bearing in mind that alot of situational factors will influence your digital marketing strategy such as how competitive the online market is for your products/services. Therefore a competitor analysis is always useful in the early stages of your digital marketing plan. Before a digital marketer or business owner even thinks about measuring the effectiveness of their online marketing campaign they need to ensure the fundamentals are right.
Firstly, having a clear, well designed & easy to navigate website is paramount. Indeed a well designed website is great but without effective website optimisation you don’t have an audience to appreciate it! When it comes to the optimisation of your website this is an ongoing process and does take time. It won’t happen overnight but with the right research and appropriate tools used search engine optimisation does deliver real, measurable results.
Variety is the spice of life and it appears this is also the case when it comes to website optimisation. When trying your hand at search engine optimisation doing a bit of everything usually pays off particularly for small business owners. A combination of targeted keyword optimisation, quality link building, ongoing improvement of website content and some targeted pay per click advertising should give you the best chance of driving more traffic to your website. Increase in traffic is of course the ultimate goal of website optimisation. You will soon notice if your chosen optimisation tools are not sending potential customers your way.
Once your SEO strategy is successfully driving substantial traffic to your website then you can start measuring & assessing the actual effectiveness of your website. This brings us back to our all important ‘measurability factor’. As most digital marketing enthusiasts are aware Google Analytics provides a multitude of useful tools to analyse & track exactly where your traffic is coming from whether it be from Google searches or from a link on a search directory page. These valuable reporting tools help you determine which aspects of your SEO campaign are working & which aren’t thus allowing you to fine tune it for the best possible results. It really is a case of trial and error to see which SEO strategy suits your business best.
One of these effective analysis tools is Google’s conversion tracking whereby Google measures every conversion that takes place on your website. A conversion occurs when a click on your ad leads directly to specific user behaviour you deem valuable such as a purchase, signup, page view, or lead. The technology behind this involves Google placing a browser cookie on a user’s computer when he/she clicks on one of your AdWord ads. Then, if the user reaches one of your conversion pages, the cookie is connected to your webpage. When a match is made, Google records a successful conversion for you. The extent of this tracking seems endless with Google offering various advanced conversion reports such as sitewide pageview analysis, advanced goal definition and conversion funnel analysis.
When utilising the conversion tracking tool many business owners might ask the logical question ‘what should my conversion rates be?’. According to recent industry reports published in 2011 by Forrester Research Inc. & Shop.org 2-3% is the average e-commerce conversion rate. This figure is also applicable to the UK market as highlighted in a recent report released by Imrg.org (interactive media in retail).
Measuring Progress
However, it is worth noting that this average conversion rate is generally calculated based on large, publicly traded websites. Therefore there is no definitive average conversion rate when it comes to smaller, localised businesses. Thankfully for essential, local business service companies higher than average conversion rates are often reported. Think about it – if you go to a mechanic’s website you’re more than likely not there to browse. You’re likely to be having car trouble and are going to call to see how much it going to cost and how long it will take them to get to you!
In stark contrast more ‘non-essential’ type services such as a garden landscaping company can usually expect much lower online conversion rates, often in the 1-2.5% range. When tracking & aiming to increase your conversion rates it’s good to use the industry average as a starting point and work from there. Often times, it is far easier to cost-effectively increase website traffic and get more qualified visitors to a website than it is to improve the site’s conversion rates. Ironically, the extra traffic makes improving website conversion rates easier because trends are more easily identified with larger numbers. While there are proven methods for increasing online conversion rates, it is still like all aspects of Digital Marketing a mix of art and science.
Conclusion:
All business owners & digital marketers should view their website as their sales rep. With that in mind maximising your website’s performance requires three key elements:
1. Well structured, goal-orientated website design with specific calls to action
2. Significant & targeted visitor volumes
3. Accurate tracking mechanisms
Finally, when it comes to maximising your website performance, we here at Superior Internet Marketing recommend adopting an “always be testing – track, test, analyse, tweak, repeat” attitude and, in the long-run, you’ll get to where you want to go!
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