Have you ever heard it said that you cant manage or improve what you cannot measure? If you are marketing online and have any intention of making a lot of money, there is simply nothing that is more important than measuring what is working and what is not.
What are the best methods of measuring your business performance? If you would like to master this process, just follow the article and find its key elements.
First of all, you have to determine what is your average client worth at the moment. Just add all your initial investments you have made to get a client and subtract it from your initial income from him.
Just as an example, lets say you need to pay for 100 hits at 0.60 cents each in order to generate three sales at 55 dollars each. It means each of those customers costs about 20 dollars to generate. Each of those customers is 35 dollars worth.
Then you have to take into consideration the cost of processing the payment and other kinds of overhead. Once you are through with this process, you have a true idea of how much you are making from each customer. Then you are ready to move on to the second principle, which is measuring the lifetime value of each customer.
This takes time, but when you find it out, you will be able to figure out what you have to do – attract new clients or increase the lifetime value of existing ones. If you have other products and services your clients can benefit from, you factor the profits of those back into the equation.
In other words, say that you have 5000 subscribers and you sell 500 of them your teleseminar package at $100. This adds another ten dollars to the value of those customers, which increases your value to 45 dollars.
Now as you are doing this, you will find that there are other variables involved, but this should give you an idea of the process. Once you know the worth of each customer, you can put together a plan for using the third measurement key. The third key is measuring the buying motivation of your established customers by asking them questions and sending them surveys. This is the most valuable way to measure your marketing process, because it will tell you exactly what to do next.
Well, you can consider your ideas brilliant and your products worth buying, but it is always the customer who decides if its working or not. If you find this out before you launch your new product, it will save you a lot f money you would spend on your marketing efforts. By understanding how to measure your company’s performance and how to motivate clients to buy, you will be able to apply it on practice and make your company prosper.
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