Join Matt Bailey for an in-depth discussion in this video Measure the right outcomes, part of SEO: Keyword Strategy in Depth.
When measuring the effectiveness of your key word research as well as your online business, it's vitally important to measure the right outcomes. The first thing that I challenge organizations to do is to come up with a set of goals that clearly define their purpose. The first and foremost goal that tends to get overlooked is that the primary purpose is to make money. If the organization isn't profitable then it won't be lasting long. And so, the clear goal of making money, creating revenue, and more importantly making profits enables a company to grow.
Your website is an extension of your ability to sell. And so, your website must be making you money in order to be profitable. Try to remember that as your primary goal, otherwise less important things tend to get promoted to a higher visibility than the primary goal which is making money. In your reporting, make sure that you always report according to the primary goal, and then, report to secondary goals. Every report that I make focuses on the primary goal of making the organization money.
In the case of ExploreCalifornia.org, we're looking for bookings. Bookings are what makes us money. And so, that's going to be the primary goal in our analytics. The secondary goals are those things that don't immediately result in increased revenue or making money. But they're performance objectives that will contribute to making money. For example, anyone who fills out an inquiry or a support form. People that are interested in tour specials or someone who may opt for the online chat to talk more about what's available. People that subscribe to updates.
Anyone who downloads any information and registers for that download, or anyone that subscribes to a podcast. You see, these are all action goals. They're performance based. It means that we're engaging people, and while we may not make money from their actions right away, we stand a great chance of making money for them down the road as well as building loyalty with our own audience. And so, these are secondary goals that contribute to our primary goal. The third level of goals are what I call the tertiary goals.
These are our key performance indicators. For lack of a better term, it's your dashboard. This is your dashboard that lets you know that you're on your way. You see, a typical car dashboard doesn't tell you where you're going. You need some sort of GPS or a mapping program for that. What the dashboard in your car tells you is how fast you're getting there. Is your engine okay? Are all the factors that will enable you to reach the goal working together? And this where we put rankings, visits, time on site, page views, and bounce rate.
All of these things could easily become the goal, especially rankings. However, when you realize that these are all key performance indicators that simply are a dashboard letting you know that things are working together. However, you still need to keep your eyes on the primary goal. And so, don't let these become a distraction. These are simply key performance indicators that you're moving in the right direction. In order to keep you on your goal, it's important to come up with a sales analysis tool. Again, I'll use a spreadsheet.
And I build out the spread sheet by putting in the top corner my average sale, the average number of visitors that I receive in a month, my conversion rate, and then the revenue based on those numbers. This is just the average, but what this does is it enables me to forecast out what happens if I focus on any area of the website. And so, if I work on increasing the amount of visitors, 5%, 10%, 20 or 50%. I can see immediately what that will result, in terms of revenue.
Now of course there are many other factors, and this is more of just a round, general way of looking at increasing the traffic and how that could affect our revenue. So this lets me know that if I go from 5,000 visitors in a month to 6,000 visitors in a month at a 1% conversion rate, I will increase my revenue $5,000. This enables me to come up with a clear budget that will allow me to grow within that realm, but still maintain my profitability.
However, also something that's important to look at, is the usability of your web site. You see, if I increase my conversion rate just a tenth of a percent, that's $2,500 in additional revenue. And see the conversion rate is based off sales out of 100 people. So currently at a 1% conversion rate, I'm only getting one out of 100 visitors to purchase or to book a trip. If I change that to two out of 100 people, I've increased my conversion rate to now 2%.
And without increasing my visitors at all, I have increased my revenue twice as much, to $50,000. And so, this needs to work hand in hand. Increasing the visitors to your website as well as making your website easier to use, both have an impact on your revenue. And then ideally, there's a sweet spot. A sweet spot of increasing your conversion rate as well as increasing the number of visitors to your site. And that results in really growing your revenue because you're exposing yourself to more visitors but you are also making your site easier to use and providing content that your visitors want.
Enabling them to book more often, to come back and to be great long-term customers. So create a spreadsheet that looks at your current monthly averages and then forecast what your visitors and your revenue would look like over time if you increase your visitors. But then, also if you increase your conversion rate. This will give you the ability to plan as well as report according to your primary business goals.
- Understanding how keywords work
- Using long-tail keywords, phrase patterns, and plurals
- Organizing keyword data with a keyword spreadsheet
- Interpreting data and discovering searcher intent
- Measuring keyword competitiveness and brand impact
- Examining keyword demand and keyword trends
- Applying keywords to your website for maximum searchability
- Creating effective PPC ads based on keywords
- Understanding PPC bidding strategies to avoid costly mistakes
- Measuring results so you can further prioritize marketing efforts