If you can make more in sales than you spend in advertising, it’s like having a “Magic Slot Machine” that spits out money.
And if you want to make $5, $10 or more for every dollar you put into that machine, you’ve got to be scientific about your marketing.
Today we’re going to talk about how you can take control of your advertising, reduce your costs, increase sales and drive more revenue into your business. It’s the simple way to know scientifically, the amount of money you will make for each and every advertising dollar you spend.
I’m talking about your marketing metrics or performance metrics and you have two choices… you can either be a metrics master, or a marketing slave. Yes, understanding your metrics is really “that” important to your online success.
Metrics based marketing is one of the most commonly neglected practices in internet businesses, and it amazes me how many marketers take the “shotgun approach” with their advertising efforts.
Whether you pay for traffic, or you are getting traffic from your search engine optimization efforts, you are investing either money or time, and the ultimate goal should be to get the absolute highest return on your investment possible, and it all comes down to this…
- Knowing your conversions through each step of your sales funnel (click, lead, sale, up-sell, etc.)
- Knowing how much it costs you to get a visitor
- Knowing how much it costs you to acquire a new lead
- Knowing how much it costs you to get a sale
- Knowing how much each customer is worth to you in the first 30, 60 and 90 days (so you don’t go broke!)
- Knowing the value of your visitors by traffic source and your highest ROI traffic (so you know where to focus your resources)
- And finally, knowing exactly what to do spend less to acquire clicks, leads and sales & and how to increase the value of your customers so you can out-maneuver your competition
If your head is spinning, I have good news…
First of all, you don’t need a mathematics degree to figure this stuff out. There is tracking and analytics software you can use that will do all the complicated stuff for you. All you need to do is set it up once, and your metrics are calculated for you, auto-magically.
One of the tools we use is free, and it’s very easy to set up. If you aren’t using Google Analytics, well you should be.
If you want to learn more about this subject, I’ve created a very simple-to-follow course that will teach you everything you need to know about copywriting and marketing metrics called The Copywriting Mastery Course.
Until next time,
Tim
